Search found 5779 matches

by Dandy
Sun Jun 23, 2019 12:16 pm
Forum: Personal Investments
Topic: Oddly low Federal Inc Tax Year, how to take advantage?
Replies: 5
Views: 775

Re: Oddly low Federal Inc Tax Year, how to take advantage?

Convert to Roth and second choice is to sell any taxable investments that no longer fit your plan.
by Dandy
Sun Jun 23, 2019 6:50 am
Forum: Personal Investments
Topic: Scared about investing large amount of money
Replies: 24
Views: 2325

Re: Scared about investing large amount of money

Here is what I recommend: 1. Put a portion -- say 20% in your investment allocation now 2. Set up an automatic monthly investment to fully invest the rest over the next 12 months 3. If/when the equity market drops a lot during the month double up that month's amount Gets you off the sidelines, teach...
by Dandy
Sat Jun 22, 2019 7:32 am
Forum: Personal Investments
Topic: Asset Allocation Question.
Replies: 14
Views: 1378

Re: Asset Allocation Question.

Interesting issue. I pretty much am a pay off the debt guy. One thought would be how long do you plan to live in your house. I know at 71 I'm thinking of moving to a rental after 45 years as a home owner. Getting tired of the house/landscaping upkeep ,etc. The longer you plan to stay might make it l...
by Dandy
Sat Jun 22, 2019 7:05 am
Forum: Personal Investments
Topic: Asset Allocation - Risk
Replies: 15
Views: 1183

Re: Asset Allocation - Risk

Some who have won the game keep on investing rather aggressively. Maybe to maximize money for heirs or charity. I take the opposite approach - more toward asset preservation. At 71 my overall allocation is 43/57 so on the conservative side of moderate. Earlier in retirement I couldn't decide if 60/4...
by Dandy
Fri Jun 21, 2019 8:31 am
Forum: Investing - Theory, News & General
Topic: The problem in retirement we rarely discuss [what to do with stock funds]
Replies: 54
Views: 4865

Re: The problem in retirement we rarely discuss [what to do with stock funds]

the normal recommendation, at least in the accumulation stage, is for taxable to contain all/mostly equities and the tax advantaged all/mostly fixed income. When retirees hit 70 and take RMDs they are depleting all/mostly fixed income. The combination of both combined with equities to outperform fix...
by Dandy
Thu Jun 20, 2019 8:07 am
Forum: Personal Finance (Not Investing)
Topic: how do you manage your cash flow in retirement
Replies: 28
Views: 3335

Re: how do you manage your cash flow in retirement

In retirement I have pensions and Social Security (2) sent to an online Savings account. Twice a month I have money transferred from Savings to our interest checking account - acts like a twice a month paycheck. Also, have a local bank checking account. The savings and interest checking are online b...
by Dandy
Thu Jun 20, 2019 7:39 am
Forum: Personal Finance (Not Investing)
Topic: Can I retire in 1 year at 53
Replies: 53
Views: 8548

Re: Can I retire in 1 year at 53

Numbers look pretty good. Some concerns: 1. adding about 10 years to retirement - the longer that is the harder it is to predict success. e.g. health, health insurance, inflation, investment performance, etc. 2. 2 kids with prospects of college expenses 3. Human capital (earning power) usually drops...
by Dandy
Thu Jun 20, 2019 7:21 am
Forum: Investing - Theory, News & General
Topic: Indexing VS. buying Berkshire Hathaway stock?
Replies: 34
Views: 2728

Re: Indexing VS. buying Berkshire Hathaway stock?

Why would you want to invest in the stock of a company whose chairman is 88 years old and whose vice chairman is 95 years old? These two have been the primary reasons for the company's success. What happens after they're gone? If you're looking for a long-term, stable investment, Berkshire Hathaway...
by Dandy
Tue Jun 18, 2019 1:30 pm
Forum: Personal Investments
Topic: Pension Lump Sum amount drops after age 65
Replies: 20
Views: 1275

Re: Pension Lump Sum amount drops after age 65

I assume you started the pension at 65, the SS at 70?
Actually, got a full pension at 60 based on years of service so I had 5 years at the higher rate.
by Dandy
Tue Jun 18, 2019 12:42 pm
Forum: Personal Investments
Topic: Pension Lump Sum amount drops after age 65
Replies: 20
Views: 1275

Re: Pension Lump Sum amount drops after age 65

My pension dropped at 65 because it assumed I would take Social Security - but I waited until 70. Didn't have a lump sum choice.
by Dandy
Tue Jun 18, 2019 6:03 am
Forum: Investing - Theory, News & General
Topic: A thought on mortgage payoff vs investing
Replies: 27
Views: 2933

Re: A thought on mortgage payoff vs investing

I think it is good to have some decent assets in taxable accounts -- a mix of investments and savings. After that I'm for having all or almost all extra go to paying down debt. This is especially true if, based on the new tax law, you can't deduct your mortgage interest and you are maxing out your t...
by Dandy
Mon Jun 17, 2019 5:59 am
Forum: Personal Investments
Topic: ROTH asset allocation
Replies: 5
Views: 546

Re: ROTH asset allocation

The usual advice is to be more aggressive in your Roth. I can see that it makes sense, especially in the accumulation stage. I view Roth as special and I don't have a large balance especially compared to my TIRA. I don't want that desirable Roth to get savaged by a major correction. So, at 71 I keep...
by Dandy
Sun Jun 16, 2019 9:33 am
Forum: Investing - Theory, News & General
Topic: Why do large personal portfolios include bonds?
Replies: 164
Views: 11815

Re: Why do large personal portfolios include bonds?

You could sort of flip that question e.g. why would a person with a large portfolio have equities? OK a lot depends on how large the portfolio is and the age of the investor etc. But, essentially if you have much more than you need why take much risk? You have won the "game" and you can't take it wi...
by Dandy
Sun Jun 16, 2019 7:33 am
Forum: Investing - Theory, News & General
Topic: 5 Million Into Fixed Income
Replies: 37
Views: 5500

Re: 5 Million Into Fixed Income

People with 10 million should figure out what level of income is needed to support their desired lifestyle and other goals. That should help determine the need for risk in determining their allocation. Assume it was $300k. 10 million divided by 300k per year =33.3 years worth of funding even if it a...
by Dandy
Sat Jun 15, 2019 7:46 am
Forum: Investing - Theory, News & General
Topic: Slice and dice for bonds
Replies: 49
Views: 3320

Re: Slice and dice for bonds

For those with a large allocation to fixed income, especially retirees, it can make sense to consider several different products. CDs until recently had much higher rates than corresponding Treasuries - at one time 100 bp higher. Treasuries are not only government guaranteed but do well when there a...
by Dandy
Fri Jun 14, 2019 3:18 pm
Forum: Investing - Theory, News & General
Topic: How have your homes as investments done?
Replies: 213
Views: 21499

Re: How have your homes as investments done?

About 5% compounded over 45 years. bought in 1974 for 50k now worth maybe 450K+. 3 bedroom ranch on a modest flat lot in a high cost of living suburb with modest R.E. taxes for the general area. But what costs to subtract? Mortgage interest?, upgrades e.g. kitchen redo?, siding? landscaping? mower(s...
by Dandy
Fri Jun 14, 2019 11:31 am
Forum: Investing - Theory, News & General
Topic: Wellington VS Balanced Index
Replies: 36
Views: 6097

Re: Wellington VS Balanced Index

Can't argue with Wellington's performance and relatively low cost and turnover. It is hard to classify it as an "active" fund. I have a modest allocation to its sister fund Wellesley Income Fund. But, I have a large allocation to Balanced Index in my TIRA. Lower (slightly) cost index/passive. I'd er...
by Dandy
Thu Jun 13, 2019 6:51 am
Forum: Personal Investments
Topic: Am I being realistic?
Replies: 9
Views: 1795

Re: Am I being realistic?

You may not have the Need to take high equity risk since you can save your way to your "number". A lot depends on your joint employment and health over the next couple of decades. So you can be aggressive if you want or not. I tend to think those that are near their number to move from growth asset ...
by Dandy
Wed Jun 12, 2019 2:03 pm
Forum: Personal Investments
Topic: $1 million Where to Park?
Replies: 19
Views: 3650

Re: $1 million Where to Park?

Thank you so much. Would you mind putting the ticker symbols for those two for me please? I’m confused which is which looking at VG list. VG Treasury Money Market Fund ($50k minimum) - symbol VUSXX ** Ltd Term Tax Exempt Fund (Admiral shares - Also 50k minimum) - symbol VMLUX ** can't normally see ...
by Dandy
Wed Jun 12, 2019 8:20 am
Forum: Personal Finance (Not Investing)
Topic: 2015 subaru forester 96k, replace or run into the ground?
Replies: 24
Views: 1999

Re: 2015 subaru forester 96k, replace or run into the ground?

I am fairly sure a 4 YO Subaru is current enough safety would not have a material impact to ones decision. Subaru's are considered pretty safe vehicles in most cases. The specific safety features I mentioned were options, if they were available at all, I believe, at that time and some may still be ...
by Dandy
Wed Jun 12, 2019 7:39 am
Forum: Personal Finance (Not Investing)
Topic: 2015 subaru forester 96k, replace or run into the ground?
Replies: 24
Views: 1999

Re: 2015 subaru forester 96k, replace or run into the ground?

If you can afford it I would put a heavy weighting on safety. Does your existing Subaru have a decent number of safety features? e.g. emergency braking, blind spot monitoring, (and that feature where when you are backing up alerts you to cross traffic?). Avoiding even a small accident is worth it. H...
by Dandy
Wed Jun 12, 2019 7:16 am
Forum: Investing - Theory, News & General
Topic: Info request on your withdrawals in retirement
Replies: 13
Views: 1767

Re: Info request on your withdrawals in retirement

When did you retire? 2008 How many X of expenses is your portfolio? At retirement - 30 Asset mix? at retirement - 55/45 - now 43/57 Growth of assets, how much has your portfolio grown or shrunk? Growth - guess is 60% growth? (modest inheritance excluded) What method do you use for withdrawals? For k...
by Dandy
Wed Jun 12, 2019 6:51 am
Forum: Personal Investments
Topic: $1 million Where to Park?
Replies: 19
Views: 3650

Re: $1 million Where to Park?

Vanguard's Treasury Money Market is safe and liquid and may avoid any state income taxes. If you can take a small risk you can put some or more in Vanguard's Ltd Term Tax Exempt Fund which would avoid Federal Income taxes. Since the Fed is coming off raising interest rates to neutral or lowering the...
by Dandy
Mon Jun 10, 2019 7:04 am
Forum: Investing - Theory, News & General
Topic: AA : willingness, ability, need
Replies: 24
Views: 1844

Re: AA : willingness, ability, need

For me it is trying to determine your "number". i.e. what investment asset level do you want to have when you retire. That is pretty hard to do in your 30's. But you can get an idea of what you might accumulate at age 60. Savings rate x a conservative growth rate e.g. 4 or 5%. How does the outcome l...
by Dandy
Sat Jun 08, 2019 8:09 am
Forum: Personal Finance (Not Investing)
Topic: Do you carry Umbrella Insurance?
Replies: 142
Views: 9087

Re: Do you carry Umbrella Insurance?

Yes - about 2/3 of assets. Relatively low risk situation but should consider upping it.
by Dandy
Sat Jun 08, 2019 8:06 am
Forum: Investing - Theory, News & General
Topic: Are market downturns & crashes really driven by fear?
Replies: 23
Views: 1773

Re: Are market downturns & crashes really driven by fear?

I'm sure there are many causes to downturns and crashes. I think fear acts like gasoline on a fire -- it makes bad things even worse.
by Dandy
Sat Jun 08, 2019 6:43 am
Forum: Personal Investments
Topic: Is a Roth 401k right for me?
Replies: 28
Views: 2146

Re: Is a Roth 401k right for me?

With a good pension and social security and a focus on saving/investing you will likely have a high tax bracket in retirement especially if RMDs from a large retirement plan. So, you can love the contribution tax breaks in your accumulation years but not like the higher taxes? from RMDs in retiremen...
by Dandy
Fri Jun 07, 2019 6:54 am
Forum: Personal Finance (Not Investing)
Topic: Would you buy a house without a garage?
Replies: 95
Views: 5927

Re: Would you buy a house without a garage?

I bought one that converted the one car garage into a den. Have lived in it for 45 years with wife and 2 kids. We use the den a lot. It is a pain in the winter cleaning snow off the car(s) and it would be nice to store some tools in a garage instead of the shed. From what I see about 1/2 the garages...
by Dandy
Thu Jun 06, 2019 2:46 pm
Forum: Investing - Theory, News & General
Topic: What is the rationale for cash in your portfolio?
Replies: 36
Views: 2595

Re: What is the rationale for cash in your portfolio?

There may be some profit motives recommending cash. At one time VG TD fund allocated x% to money market (if I recall correctly). Don't know what interest rate that cash paid but a Savings Account paying 2+% is pretty close to a short term bond or a 1 year Treasury. It doesn't lose value when interes...
by Dandy
Thu Jun 06, 2019 2:32 pm
Forum: Personal Investments
Topic: How to factor an Annuity into a 3-portfolio approach/allocation
Replies: 14
Views: 942

Re: How to factor an Annuity into a 3-portfolio approach/allocation

I wouldn't included it in your investment allocation. It isn't a bond and doesn't provide current income. Just like someone who has a vested pension that is years away from being activated. It allows you to take more risk in your investments if you choose to since it is far better than not having th...
by Dandy
Thu Jun 06, 2019 6:38 am
Forum: Investing - Theory, News & General
Topic: "Stay course" conflicts: Help me understand.
Replies: 10
Views: 1246

Re: "Stay course" conflicts: Help me understand.

Stay the course is a very good general advice. When you invest you know that there will be equity corrections of 50% or more and possibly equity gains of 50% or more. So understand that and don't panic or get greedy rebalance and move on. Easy to say sometimes a lot harder to stick to. Many, when th...
by Dandy
Mon Jun 03, 2019 3:32 pm
Forum: Personal Finance (Not Investing)
Topic: Pulling retirement funds - adjust AA in down market?
Replies: 19
Views: 1094

Re: Pulling retirement funds - adjust AA in down market?

I am not going to keep 5 years in cash (as I've seen suggested on Bogleheads) as I think that is frankly leaving way too much on the table. Of course a lot depends on your portfolio, withdrawal dollar and percentage, age etc. If you have reached your number, have a reasonable withdrawal rate and ar...
by Dandy
Mon Jun 03, 2019 6:35 am
Forum: Personal Investments
Topic: Tax Deferred Investments vs. Taxable??? What is better?
Replies: 10
Views: 1051

Re: Tax Deferred Investments vs. Taxable??? What is better?

The contributions to the 403b gives you some current tax advantage. Depending on your tax bracket in retirement it might make RMDs put you in a higher retirement tax bracket. Oh the curse of too much money. :D You should look at how you might use the "excess" income (now or in retirement) to make li...
by Dandy
Sun Jun 02, 2019 2:16 pm
Forum: Personal Finance (Not Investing)
Topic: Required Minimum Distributions
Replies: 57
Views: 4585

Re: Required Minimum Distributions

By following your suggestion you are missing the opportunity to keep your RMD invested tax deferred until the end of the year and more importantly the advantage of making only one tax payment in December by having it withheld from your RMD. I think you misunderstood my suggestion - I could have wor...
by Dandy
Sun Jun 02, 2019 7:12 am
Forum: Personal Finance (Not Investing)
Topic: Required Minimum Distributions
Replies: 57
Views: 4585

Re: Required Minimum Distributions

My advice is to automate the RMD withdrawals. You don't want to wait to December to decide and then forget, get sick etc. Set it up to go in early December and then if you want to change how it is tapped or withholding, etc. you can over ride the automated set up. I set up mine to take the RMD propo...
by Dandy
Sat Jun 01, 2019 7:56 am
Forum: Personal Investments
Topic: Is an emergency just mental accounting?
Replies: 70
Views: 5665

Re: Is an emergency just mental accounting?

Having separate accounts for specific purposes can be ok as long as it doesn't mask your true allocation or lead you into poor decisions. In a true emergency like a loss of job all your assets are in play not just the 6 or 9 months set aside in a high yield savings account. the emergency fund is par...
by Dandy
Sat Jun 01, 2019 6:24 am
Forum: Personal Finance (Not Investing)
Topic: Considering Pension Options
Replies: 14
Views: 1213

Re: Considering Pension Options

Not enough info to really make a confident decision. Some thoughts: 1. It usually makes sense to delay pensions and SS to get the higher payment for a longer time. A lot depends on health and portfolio size and current income needs. 2. In general it seems logical to take 100% payment for you and spo...
by Dandy
Sat Jun 01, 2019 5:59 am
Forum: Personal Finance (Not Investing)
Topic: Critique of Saving/Investing/Life Plan for 21 Year Old
Replies: 18
Views: 1589

Re: Critique of Saving/Investing/Life Plan for 21 Year Old

Usually the match is a deal you can't pass up. But with full? vesting over 4 years and your likely to leave the company relatively soon you might not get to keep much of the match. If there are decent investment choices even partial vesting might make some sense. You need to do the math to see if th...
by Dandy
Fri May 31, 2019 2:24 pm
Forum: Personal Investments
Topic: Account pension as part of bond allocation
Replies: 16
Views: 825

Re: Account pension as part of bond allocation

A promise of a nice pension in 30 years is a warm fuzzy feeling. If you were closer to collect I would say it allows you to take more equity risk (than a person without a pension). Of course most retirees are looking to trim their equity exposure. For now I would not count it as anything when consid...
by Dandy
Fri May 31, 2019 7:50 am
Forum: Personal Investments
Topic: Retirement plan [Pension lump sum or annuity?]
Replies: 23
Views: 1504

Re: Retirement plan [Pension lump sum or annuity?]

Usually the math suggests take the pension. Others can figure out if the pension is better than using the lump sum to buy an annuity. Even though the pension or likely the annuity is likely not COLA, I generally favor retirees look to get a decent income floor in retirement vs adding more assets to ...
by Dandy
Wed May 29, 2019 10:49 am
Forum: Investing - Theory, News & General
Topic: [Nominal] Annuities are a bet on future inflation rates and should not be purchased by retirees
Replies: 183
Views: 12306

Re: Annuities are a bet on future inflation rates and should not be purchased by retirees

A nominal SPIA can certainly be useful as part of a retirement plan. But you are correct that inflation risk should be taken into account. +1 So, as noted by many forum discussions, is a non COLA pension (vs taking a lump sum). Inflation is a major concern but so is outliving your portfolio. How re...
by Dandy
Wed May 29, 2019 7:55 am
Forum: Investing - Theory, News & General
Topic: Is Cash Trash? The Purpose of Cash
Replies: 212
Views: 25891

Re: Is Cash Trash? The Purpose of Cash

I think cash has a limited role in many portfolios. Of course cash needs to be defined. The main negatives about cash is it stunts growth and may not keep up with inflation. The purpose of the fixed income of the portfolio is usually for stability/safety. Most definitions of cash do that pretty well...
by Dandy
Wed May 29, 2019 7:08 am
Forum: Investing - Theory, News & General
Topic: [Nominal] Annuities are a bet on future inflation rates and should not be purchased by retirees
Replies: 183
Views: 12306

Re: Annuities are a bet on future inflation rates and should not be purchased by retirees

Almost all questions regarding should I take a non COLA pension or a lump sum is answered take the pension. A non COLA pension or annuity is not a perfect option. It provides some protection for outliving your assets but exposes the holder to diminishing purchasing power due to inflation. Usually th...
by Dandy
Wed May 29, 2019 6:46 am
Forum: Personal Investments
Topic: pay off an ARM mortgage or not?
Replies: 58
Views: 3374

Re: pay off an ARM mortgage or not?

Pay it off. Why would you want to play the debt/interest rate "game" when you don't need to. I think you actually made a rare "win" since you had this mortgage during a nice drop in rates.
by Dandy
Tue May 28, 2019 8:35 am
Forum: Personal Investments
Topic: Holding cash
Replies: 8
Views: 1857

Re: Holding cash

It is great to be debt free especially mortgage free. 3% fixed mortgage is a decent rate. I would suggest the goal would be that your mortgage would be zero no later than say age 60 -- Ideally 55. You don't want to retire or be forced to retire and still have monthly mortgage payments. You should co...
by Dandy
Tue May 28, 2019 8:04 am
Forum: Personal Investments
Topic: Estimating "largest loss since 1926" and "# years with loss"
Replies: 24
Views: 2427

Re: Estimating "largest loss since 1926" and "# years with loss"

I believe current equity dividends, bond interest and cash distributions are much lower than many prior decades. Back a few decades I worked for a company that ran an annual US Savings Bond drive. I was selected as the department promoter one year. Had trouble convincing people to sign up for a gove...
by Dandy
Mon May 27, 2019 9:20 am
Forum: Investing - Theory, News & General
Topic: Do you have an allocation more conservative than 50/50 ?? What is it? Why? How Bogleheads are getting it done.
Replies: 135
Views: 12013

Re: Do you have an allocation more conservative than 50/50 ?? What is it? Why?

I post it as an alternate way of looking at the asset allocation question, putting the conventional thought into sharper relief
.

Your original post was --original and interesting. I was just trying to build on that.
by Dandy
Mon May 27, 2019 7:56 am
Forum: Investing - Theory, News & General
Topic: Do you have an allocation more conservative than 50/50 ?? What is it? Why? How Bogleheads are getting it done.
Replies: 135
Views: 12013

Re: Do you have an allocation more conservative than 50/50 ?? What is it? Why?

Would it make sense to use instead of X times expenses, X times the drawdown required to meet expenses. There is a big difference if most/all of your expenses are covered by pension/SS vs little or none. The equity allocation/risk need can be vastly different.
by Dandy
Mon May 27, 2019 4:44 am
Forum: Investing - Theory, News & General
Topic: Do you have an allocation more conservative than 50/50 ?? What is it? Why? How Bogleheads are getting it done.
Replies: 135
Views: 12013

Re: Do you have an allocation more conservative than 50/50 ?? What is it? Why?

I also feel I have won the game. (luck, living below our means and thanks to Mr. Bogle) Retired age 71 Pension and SS about equal our expenses, no debt/mortgage Should be enough for heirs - actually gifting to them annually No need to take extra risk for extra growth Enough "safe" fixed income (a la...
by Dandy
Sun May 26, 2019 8:43 am
Forum: Investing - Theory, News & General
Topic: "A Set-It-and-Forget-It Target-Date Series From Vanguard"
Replies: 120
Views: 13562

Re: "A Set-It-and-Forget-It Target-Date Series From Vanguard"

Experts change their opinions when confronted with new data Agree. What new data did the VG experts uncover about equity asset allocation that made them up it 10% for these set it and forget it products designed with a glide path to lower equity allocations over time? Equity allocation and risk hav...