Search found 6225 matches

by Dandy
Sat May 30, 2020 10:54 am
Forum: Investing - Theory, News & General
Topic: “WHEN YOU'VE WON the game, stop playing with the money you really need.”
Replies: 167
Views: 12648

Re: “WHEN YOU'VE WON the game, stop playing with the money you really need.”

Thinking you know how much you need for the next three decades is a prime example of the end of history illusion. retirement can last for 3 decades or more and there are surely going to be unexpected expenses that will occur. LMP isn't made to cover all possible expenses. If you have enough you can...
by Dandy
Sat May 30, 2020 7:35 am
Forum: Investing - Theory, News & General
Topic: “WHEN YOU'VE WON the game, stop playing with the money you really need.”
Replies: 167
Views: 12648

Re: “WHEN YOU'VE WON the game, stop playing with the money you really need.”

Why would you change your financial plan that got you to where you needed to go now that you achieve your numbers? Why wouldn't you keep things simple and stick to the plan that got you there? Many do. I viewed the allocation in the accumulation stage as the risk I needed to take to reach my "numbe...
by Dandy
Fri May 29, 2020 9:22 pm
Forum: Investing - Theory, News & General
Topic: “WHEN YOU'VE WON the game, stop playing with the money you really need.”
Replies: 167
Views: 12648

Re: “WHEN YOU'VE WON the game, stop playing with the money you really need.”

how is that (an LMP that results in a 50/50 allocation) really any different than a 50/50 balanced portfolio, The difference is two fold: 1. The method used to get the final allocation. e.g. not guessing what allocation seems to fit a risk tolerance. Which is an educated guess at what allocation mi...
by Dandy
Thu May 28, 2020 8:49 am
Forum: Personal Investments
Topic: If not 3 fund, whats your strategy ?
Replies: 66
Views: 3978

Re: If not 3 fund, whats your strategy ?

The 3 fund portfolio is a very good and simple approach. You might need to supplement that with muni bond fund in taxable if your tax bracket makes that reasonable. Also, as you approach retirement and reduce your equity exposure you might want to add some an inflation protection fund. Finally, if y...
by Dandy
Wed May 27, 2020 3:48 pm
Forum: Investing - Theory, News & General
Topic: “WHEN YOU'VE WON the game, stop playing with the money you really need.”
Replies: 167
Views: 12648

Re: “WHEN YOU'VE WON the game, stop playing with the money you really need.”

A lot depends on an individual's circumstances as to whether they "won the game". The key is not only the size of the portfolio but also the size of the yearly draw down and how you withdraw. Do you use the "safe" assets as an ATM by only withdrawing from those assets? (and likely have a rising equi...
by Dandy
Wed May 27, 2020 12:54 pm
Forum: Investing - Theory, News & General
Topic: “WHEN YOU'VE WON the game, stop playing with the money you really need.”
Replies: 167
Views: 12648

Re: “WHEN YOU'VE WON the game, stop playing with the money you really need.”

I roughly follow Dr. Bernstein's idea. I use FDIC products, money markets and less risky short term bond funds (e.g. short term Treasury Index and Short Term Bond Index and in taxable Ltd Term Tax Exempt). I have enough to last until at least age 90. I'm 72. I liked this "bottom up approach vs tryin...
by Dandy
Tue May 26, 2020 5:08 pm
Forum: Personal Finance (Not Investing)
Topic: How Will Corona Virus affect the Real Estate Market ?
Replies: 51
Views: 4950

Re: How Will Corona Virus affect the Real Estate Market ?

With employment such a problem you would think fewer people could afford to buy a house/condo. Also banks might also be somewhat hesitant to lend even if you are employed. But, many banks thrive on granting mortgages. Renters might like to get out of apartments with a high concentration of people (s...
by Dandy
Tue May 26, 2020 4:28 pm
Forum: Personal Investments
Topic: Any retirees get through Covid crisis without large cash reserve?
Replies: 63
Views: 4210

Re: Any retirees get through Covid crisis without large cash reserve?

I had large cash reserves because I roughly follow Dr Wm. Bernstein's idea for those who have enough i.e. having 20 or more years worth of draw down dollars in "safe" products. For me that is FDIC products, money market and safer short term bond funds. Overall my allocation is about 42/58 last time ...
by Dandy
Mon May 25, 2020 2:07 pm
Forum: Investing - Theory, News & General
Topic: Vanguard reviews “commodities futures” for inclusion in Target Date Retirement Funds
Replies: 32
Views: 2914

Re: Vanguard reviews “commodities futures” for inclusion in Target Date Retirement Funds

My major concern about VG target date funds is you can't be sure that what you buy will be what you have. Any Balanced or all in one fund usually means you have to make some compromise from you ideal holdings. The overall allocation might be a bit more or less than you desire. The funds included you...
by Dandy
Mon May 25, 2020 7:14 am
Forum: Investing - Theory, News & General
Topic: Examples of why NOT to hold individual stocks
Replies: 93
Views: 7351

Re: Examples of why NOT to hold individual stocks

I worked for a major financial services company - Investment banking, brokerage, mutual funds -- the works. When I joined their stock was near 100. It went up, split and went well passed 100 again. Their 401k company match was in their stock, a percent of executive bonuses were in stock units that v...
by Dandy
Mon May 25, 2020 7:01 am
Forum: Personal Investments
Topic: Dollar Cost Averaging - How long?
Replies: 14
Views: 1240

Re: Dollar Cost Averaging - How long?

My approach was to put a decent chunk in immediately according to your desired allocation -- maybe 25% or so. The rest DCA automatically over 12 months. Any month where equities drop a lot - double up the DCA amount for that month with an eye toward rebalancing needs. Gets some invested quickly, get...
by Dandy
Mon May 25, 2020 6:55 am
Forum: Personal Investments
Topic: Any suggestions for the homestretch of my retirement plan?
Replies: 21
Views: 1611

Re: Any suggestions for the homestretch of my retirement plan?

You are in great financial shape. A lot depends on how stressful you job is. I know when I was younger I swore I wouldn't die at my desk or shoveling snow :oops: I once had a very stressful job with 2 daughters in their teens and a wife with a serious illness. But I was too young and not wealthy eno...
by Dandy
Sun May 24, 2020 7:55 am
Forum: Personal Investments
Topic: Does larger portfolio make one more or less risk tolerant
Replies: 25
Views: 1967

Re: Does larger portfolio make one more or less risk tolerant

A moderate allocation will still likely growth that 25 x expense asset dramatically over 20 years. If you add your contributions even more. So, what is the goal for the extra assets/risk for having a more aggressive allocation? You might want to look to how to enjoy life a bit more now rather than s...
by Dandy
Sun May 24, 2020 7:43 am
Forum: Personal Investments
Topic: Annuity
Replies: 11
Views: 881

Re: Annuity

Annuities make sense for many even if not COLA protected. Having a base monthly income in retirement makes managing finances easier and usually adds to peace of mind. You will also be delaying SS which will increase your retirement income with COLA protection for you and spouse. You realize that you...
by Dandy
Fri May 22, 2020 7:50 am
Forum: Personal Investments
Topic: Cash to bonds. But where?
Replies: 13
Views: 1241

Re: Cash to bonds. But where?

Think fixed income vs "bonds". Some FDIC products like high yield savings or CDs can be helpful.
by Dandy
Thu May 21, 2020 12:49 pm
Forum: Personal Investments
Topic: Strategy: %Cash in Portfolio
Replies: 17
Views: 1491

Re: Strategy: %Cash in Portfolio

When I was in my late 60's I couldn't decide what my retirement allocation should be-- was 60/40 to aggressive? was 40/60 to conservative? I decided to roughly follow Dr. Wm Bernstein's idea for those who have enough . Put 20 or more years worth of drawdown needed to supplement other retirement inco...
by Dandy
Tue May 19, 2020 7:58 am
Forum: Personal Finance (Not Investing)
Topic: Opinion on Relocating from IL to FL Central Gulf Coast Condo
Replies: 46
Views: 3239

Re: Opinion on Relocating from IL to FL Condo

You seem to be aware of the Florida risks e.g. heat, hurricanes. My feeling is those risks will increase rather than decrease. That would suggest renting vs buying if Florida is your desire. Of course getting to and back from the Florida rental is now more of an issue. You might want to check what t...
by Dandy
Sun May 17, 2020 10:31 am
Forum: Personal Finance (Not Investing)
Topic: Pay off Tesla as Planned or Keep Cash for Covid Uncertainty?
Replies: 62
Views: 3732

Re: Pay off Tesla as Planned or Keep Cash for Covid Uncertainty?

right now I think cash is king. We don't know where this pandemic is going to lead us as far as health, employment, taxes, investments, medical coverage, etc. One of my relatives was on disability and returned to work last Monday and was greeted with a pay cut. Another works at a state University --...
by Dandy
Sun May 17, 2020 10:10 am
Forum: Investing - Theory, News & General
Topic: Change in Strategy on withdrawals?
Replies: 7
Views: 613

Re: Change in Strategy on withdrawals?

I'm 72 and income from SS and pension almost equals our normal expenses. I like the idea of not selling taxable equities to have heirs inherit stepped up basis and avoid taxes. But I would think it is a bit early to start consuming your fixed income as the sole source of withdrawals. I think you sho...
by Dandy
Sun May 17, 2020 9:51 am
Forum: Investing - Theory, News & General
Topic: Appreciating the magnitude of Sequence of Returns immediately after retirement
Replies: 115
Views: 5857

Re: Appreciating the magnitude of Sequence of Returns immediately after retirement

Nice post -- really drives home the magnitude of an early retirement portfolio hit. Not sure it is fully appreciated when combined with zero human capital and/or the added risk of retirement before age 60.
by Dandy
Sun May 17, 2020 8:10 am
Forum: Personal Investments
Topic: Does portfolio size matter when considering Sequence of return risk?
Replies: 43
Views: 2445

Re: Does portfolio size matter when considering Sequence of return risk?

Size does matter -- in relationship with with your projected withdrawals to support your retirement income needed. In other words if your retirement pension and Social Security will cover your basic expenses you have no Sequence risk. On the other hand if you have to withdraw 4%+ to meet basic retir...
by Dandy
Sat May 16, 2020 7:45 am
Forum: Investing - Theory, News & General
Topic: Should Vanguard offer a CMA/Service ?
Replies: 19
Views: 1528

Re: Should Vanguard offer a CMA/Service ?

I think done right it is a great product and one that tends to keep customers. I thought that VG had done a lot to bring cost down not only for its customers but the rest of the industry. The side effect of the industry dropping its expenses e.g. Fidelity "zero" ER funds, is it could actually help t...
by Dandy
Tue May 12, 2020 7:16 am
Forum: Personal Finance (Not Investing)
Topic: Hang on to old car or buy new one?
Replies: 38
Views: 2089

Re: Hang on to old car or buy new one?

I like the idea of giving your daughter your car and you a newer car. Don't forget safety for you or especially your daughter since she drives a lot. Newer models often have improved safety features.
by Dandy
Mon May 11, 2020 7:22 am
Forum: Personal Finance (Not Investing)
Topic: Layoff Imminent, seeking guidance.
Replies: 56
Views: 7322

Re: Layoff Imminent, seeking guidance.

For key people who might be able to help you in a future job search, whether inside or outside the company try to get their personal contact information e.g. email, phone #. You might have a boss who thinks highly of you that might be a good reference but if you don't have his/her personal contact i...
by Dandy
Sat May 09, 2020 6:27 pm
Forum: Personal Investments
Topic: Getting more stocks after reaching my goal
Replies: 18
Views: 1205

Re: Getting more stocks after reaching my goal

So to answer your question why extra risk is needed, if you have enough money to retire, is there a reason why not putting extra money where it will likely to give you a better return in the long run? Isn't that more responsible as a steward of money? Actually I believe 100% equities isn't the winn...
by Dandy
Thu May 07, 2020 3:50 pm
Forum: Personal Finance (Not Investing)
Topic: keep emergency cash at local bank?
Replies: 26
Views: 1229

Re: keep emergency cash at local bank?

Everywhere I have my money I have the ability to write a check/draft and have set up the ability to ACH with another firm. On place I keep some money is a local name brand brick bank. Our main checking is at an online firm -- the nice thing about that is 24/7 service vs most brick banks.
by Dandy
Thu May 07, 2020 3:35 pm
Forum: Personal Investments
Topic: Drawbacks to chasing savings account bonuses?
Replies: 28
Views: 2224

Re: Drawbacks to chasing savings account bonuses?

Just make sure you look at the reviews on depositaccounts.com beforehand. Some have odd requirements, e.g. low limit on outgoing transfers, having to open and fund a checking account, etc. Most big name banks seem to avoid the worst of these gotchas.
by Dandy
Thu May 07, 2020 3:28 pm
Forum: Personal Investments
Topic: Getting more stocks after reaching my goal
Replies: 18
Views: 1205

Re: Getting more stocks after reaching my goal

Once you retire where will you take the money to fund your expenses? Bonds only? Combination? What will be the next goal for your investments --i.e. the need to take more risk? Vacation? Travel, Heirs? Charity? Just like to see it grow? These are some of the questions to consider. If you don't have ...
by Dandy
Wed May 06, 2020 5:07 pm
Forum: Personal Investments
Topic: Balancing with Contributions - Asset classes, or subclasses?
Replies: 3
Views: 146

Re: Balancing with Contributions - Asset classes, or subclasses?

I would prefer to balance the stock/bond ratio first since that is what really determines your risk.
+1
by Dandy
Wed May 06, 2020 8:25 am
Forum: Personal Investments
Topic: Best online savings bank
Replies: 21
Views: 2855

Re: Best online savings bank

Ally, Discover and Alliant Credit Union are good. Always check the ratings on depositaccounts.com. They may not always have the best rates but competitive and decent service with no gotchas.
by Dandy
Tue May 05, 2020 2:25 pm
Forum: Personal Investments
Topic: Tell me what I don't know about retirement?
Replies: 55
Views: 4869

Re: Tell me what I don't know about retirement?

My focus was getting my 401k/IRA to fund my retirement and delaying SS until age 70. It worked -- but I failed to realize the impact of RMDs would have on my tax bracket :oops: I did do some ROTH conversions but the 10 year bull market more than offset that. I try not to complain since Uncle Sam gav...
by Dandy
Mon May 04, 2020 7:42 am
Forum: Personal Investments
Topic: CDs as your fixed income, bonds, or both?
Replies: 13
Views: 1492

Re: CDs as your fixed income, bonds, or both?

Total Stock Market fund does a great job of covering U.S. equities. Total bond fund doesn't cover the scope of U.S fixed income products as well. Each fixed income product has pro's and con's if you understand them you can make good choices. FDIC products have a government guarantee against loss of ...
by Dandy
Mon May 04, 2020 7:20 am
Forum: Personal Investments
Topic: Which Bond Fund: Tips, Total Bond, Other?
Replies: 11
Views: 1381

Re: Which Bond Fund: Tips, Total Bond, Other?

I am 72 and roughly follow Dr. Wm Bernstein's suggestion for those who have enough. I put enough dollars in "safe" products to fund our retirement needs until age 90. For me "safe" products are FDIC, money markets and short term bond funds especially Treasuries. The rest are in intermediate bond fun...
by Dandy
Sun May 03, 2020 3:50 pm
Forum: Investing - Theory, News & General
Topic: What experts say about "Stay-the-Course"
Replies: 32
Views: 12772

Re: What experts say about "Stay-the-Course"

I think it is fair to sat that people should stick to their plan or program. Are we saying Mr. Bogle had a plan or program that said during extreme valuations cut my equity allocation back to 25%? Or that it said if I am x age and in ill health do it? If not, then he was reacting to market extremes ...
by Dandy
Sun May 03, 2020 7:41 am
Forum: Personal Investments
Topic: Deviating from "set it and forget it" investment approach
Replies: 63
Views: 4846

Re: Deviating from "set it and forget it" investment approach

I look at the purpose of investing -- what is the overall goal. Usually it is something like making sure I have enough assets to assure a great and possibly long retirement. At 5 million you most likely have enough and the need to take risk is pretty much not there. If the need to take risk is not t...
by Dandy
Sat May 02, 2020 11:25 am
Forum: Personal Investments
Topic: Amount to keep in cash
Replies: 18
Views: 2486

Re: Amount to keep in cash

Many take that approach and usually emergencies are rare events. When loss of job is the emergency it often occurs with problems with the overall economy - like now. So the stock market is down, you don't have a job, and reemployment is iffy. Usually, you get unemployment and often some severance bu...
by Dandy
Sat May 02, 2020 7:51 am
Forum: Investing - Theory, News & General
Topic: Do you keep moving your cash around chasing yield?
Replies: 56
Views: 5336

Re: Do you keep moving your cash around chasing yield?

When the difference is large and likely to stay that way for awhile I will move. e.g. when the VG Fed Money Market yield dropped lately due to the Fed cutting rates it was paying close to about .60 vs an online bank of 1.5% or more. I actually moved a chuck in my taxable account to a short term CD l...
by Dandy
Wed Apr 29, 2020 12:15 pm
Forum: Personal Investments
Topic: Moving elderly parents' Asset Allocation
Replies: 18
Views: 1271

Re: Moving elderly parents' Asset Allocation

When my parents and mother in law got to an age and mental status that was iffy they let me take over their bill payment. I didn't want insurance and other key bills to go unpaid. It took a lot of pressure off them and using bill pay made the task not too difficult. Had all their income go to their ...
by Dandy
Sun Apr 26, 2020 7:37 am
Forum: Personal Investments
Topic: Is it time for us to get out?
Replies: 20
Views: 2541

Re: Is it time for us to get out?

I like Dr. Bernstein's advice in general. When I was in my later 60's I wondered what my allocation should be -- was 60/40 too aggressive? was 40/60 too conservative? :oops: Facing decades (I hoped) of retirement and no human capital. One Bernstein idea that I roughly followed was putting 20 years w...
by Dandy
Sat Apr 25, 2020 7:21 am
Forum: Investing - Theory, News & General
Topic: If you have a sizable portfolio, you don't need an emergency fund
Replies: 140
Views: 10342

Re: If you have a sizable portfolio, you don't need an emergency fund

In an emergency all your assets are in play not just an emergency fund. It seems to me that the role of the emergency fund is to give you some cash/cash-like assets and time to adjust to a significant, often sudden expense challenge. Loss of a job in a pandemic and having to shelter in place might b...
by Dandy
Thu Apr 23, 2020 10:27 am
Forum: Personal Investments
Topic: When Is The Right Time to Reduce Portfolio Risk
Replies: 20
Views: 1523

Re: When Is The Right Time to Reduce Portfolio Risk

Short-term bond funds do the renewal for you. Exactly - so the only renewal action required by me is maybe once a year updating my CD ladder or since they are VG brokerage CDs letting them stay in the Fed Money Market Fund for awhile. Since those are in my TIRA I might just add to my Balanced Index...
by Dandy
Thu Apr 23, 2020 9:10 am
Forum: Personal Investments
Topic: When Is The Right Time to Reduce Portfolio Risk
Replies: 20
Views: 1523

Re: When Is The Right Time to Reduce Portfolio Risk

If you do this for 20 years, it would be safer to put much of the money in TIPS. You can buy a TIPS which has a known inflation-adjusted value in 20 years, and will probably get more from it than from holding short-term investments and renewing them every year. TIPS are good -- either a ladder or f...
by Dandy
Thu Apr 23, 2020 8:19 am
Forum: Investing - Theory, News & General
Topic: Social Security and AA
Replies: 7
Views: 496

Re: Social Security and AA

Having a pension, SS or an annuity provides income that reduces the need for supplementing it from your investments. That means you can take more risk than if you didn't have this level of retirement income. It also means you don't have to take as much risk since your investments don't have to provi...
by Dandy
Thu Apr 23, 2020 8:05 am
Forum: Personal Investments
Topic: When Is The Right Time to Reduce Portfolio Risk
Replies: 20
Views: 1523

Re: When Is The Right Time to Reduce Portfolio Risk

I like and roughly follow Dr. Wm Bernstein's approach for those who have enough. Basically, put X years of draw down dollars needed in "safe" products and the rest invest any way you want. I'm 72 and in my late 60's I couldn't decide what allocation was right for me -- what 60/40 too aggressive? was...
by Dandy
Wed Apr 22, 2020 10:37 am
Forum: Personal Investments
Topic: Retirees: Walk me thru your portfolio drawdown process
Replies: 39
Views: 3600

Re: Retirees: Walk me thru your portfolio drawdown process

I always had an allocation to cash and cash-like products. Since my equities were mostly in my taxable account and had large cap gains I didn't want them to grow past my allocation target. So I had taxable distributions sent to cash. I used existing cash products and taxable distributions to fund ea...
by Dandy
Wed Apr 22, 2020 7:50 am
Forum: Personal Finance (Not Investing)
Topic: Potential Layoff - What to Do? Personal Finance
Replies: 10
Views: 1439

Re: Potential Layoff - What to Do? Personal Finance

Build cash and cash-like assets. For taxable accounts don't reinvest distributions. Take a hard look at expenses - what can you cut e.g. having lawn services and what can you dial back - e.g. eating out -- to get an understanding of what post layoff expenses might be. Delay or cancel plans to spend ...
by Dandy
Mon Apr 20, 2020 7:39 am
Forum: Personal Investments
Topic: Northwestern Mutual 3.5% on Inherited Cash
Replies: 51
Views: 3743

Re: Northwestern Mutual 3.5% on Inherited Cash

I think this is legit -- most insurance companies want to hold on to assets. They usually will give you checks for potential withdrawals. If so, I'd be tempted to keep at least some money in the account. There might be some concern that this pandemic might hit insurance companies hard so keep that i...
by Dandy
Sun Apr 19, 2020 3:42 pm
Forum: Personal Investments
Topic: Emergency fund placement - is my thinking correct?
Replies: 5
Views: 497

Re: Emergency fund placement - is my thinking correct?

A tip I got on this forum years ago is to avoid having one large CD for a given year. If you only need a portion of it you usually have to cash in the whole CD (and in most cases pay an early redeem fee). So you might want to have 2 or 3 No penalty CDs instead of one large one. e.g. for $50k maybe a...
by Dandy
Sun Apr 19, 2020 12:55 pm
Forum: Personal Investments
Topic: How do I count a cash benefit pension in my AA?
Replies: 6
Views: 480

Re: How do I count a cash benefit pension in my AA?

Don't count any monies that you will take as an annuity because it tends to mask the true risk of your portfolio. That is especially important for those near or in retirement since loss of human capital makes catching up to any portfolio losses much more difficult. You won't have salary, bonuses, co...
by Dandy
Sat Apr 18, 2020 7:41 am
Forum: Investing - Theory, News & General
Topic: Switching from Bond funds to CD ladder
Replies: 26
Views: 1859

Re: Switching from Bond funds to CD ladder

It doesn't have to be all or nothing. I am 72 and have about 55% in fixed income. I put about 1/3 in FDIC products, about 1/3 in short term bond funds and about 1/3 in intermediate bond funds. Recently moved money from a money market to a 3 year CD ladder for much better yield.