Search found 5394 matches

by Dandy
Thu Nov 15, 2018 10:12 am
Forum: Investing - Help with Personal Investments
Topic: Question about Rebalancing Asset Allocation
Replies: 6
Views: 466

Re: Question about Rebalancing Asset Allocation

I've never really rebalanced a portfolio, as my investing has mostly been 401ks Target Date Retirement Funds, so I guess there isn't as much to manage with those. But now I am interested in doing backdoor Roth IRAs with low ER index funds, which will require some more management on my part, I suppo...
by Dandy
Thu Nov 15, 2018 8:00 am
Forum: Personal Finance (Not Investing)
Topic: [Financial] Habits of the Rich
Replies: 132
Views: 15796

Re: [Financial] Habits of the Rich

First, one of the key factors not often mentioned is luck. Luck in employment, who you marry, the health of your family, luck with your investments, etc. That being said there are things that you have some real control over. How you spend, save and invest. Living below your means can be difficult fo...
by Dandy
Wed Nov 14, 2018 1:15 pm
Forum: Investing - Help with Personal Investments
Topic: VBTLX vs. Vanguard Federal Money Market Fund
Replies: 4
Views: 598

Re: VBTLX vs. Vanguard Federal Money Market Fund

the major risk is on the equity side but we all like the fixed income side to be stable. I was never a "put it all in the Total Bond fund" camp. I like a bit of diversity in my fixed income which is about 57% of my portfolio. That being said Total Bond is a good fund should eventually overcome the r...
by Dandy
Wed Nov 14, 2018 1:00 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds vs. Savings Account
Replies: 28
Views: 1456

Re: High yield savings vs. Bonds

In a rising rate environment having a portion of your fixed income allocation in a high yield savings is fine. You have to make sure it is high yield. Most legit savings are paying about 1.9% or a bit more. VG Fed Money Market is paying 2.15 and the Prime Money Market is paying 2.26% -- neither is F...
by Dandy
Tue Nov 13, 2018 4:59 pm
Forum: Investing - Help with Personal Investments
Topic: Need to invest $100k to bring my asset allocation back in line
Replies: 7
Views: 1197

Re: Need to invest $100k to bring my asset allocation back in line

There is no great urgency to rebalance in my opinion. Some people do it once a year, others do it based on staying within their bands, etc. So, get a plan and implement it in a reasonable time. I never liked moving a lot of money. I would probably do $16k per month automated, if possible, and double...
by Dandy
Tue Nov 13, 2018 8:21 am
Forum: Investing - Help with Personal Investments
Topic: Is maxing out Tax defered 401(k) enough?
Replies: 45
Views: 4223

Re: Is maxing out Tax defered 401(k) enough?

Why such an aggressive allocation of 95/5? I would suggest a more moderate one. Get a bit more focused on trimming ongoing expense and debt reduction. Your savings rate should get you to a nice retirement.
by Dandy
Tue Nov 13, 2018 7:10 am
Forum: Investing - Help with Personal Investments
Topic: Won a lawsuit after a wrongful death in the family. How to invest?
Replies: 18
Views: 3091

Re: Won a lawsuit after a wrongful death in the family. How to invest?

My guess is that you are just learning about investing. I would go slowly since you don't know your risk tolerance. Most people your age can have an aggressive portfolio but you aren't most people. Keep the money safe until you get a better feel for what your overall allocation should be. Then put s...
by Dandy
Mon Nov 12, 2018 4:48 pm
Forum: Investing - Help with Personal Investments
Topic: Managing RMDs
Replies: 10
Views: 1036

Re: Managing RMDs

I'll just have to convert the right amount each year to keep my taxes low. Roth conversions and taxation can be complicated. Keep in mind the conversion affects taxes for a few years so you do want to keep in a lower bracket. But, when RMDs kick in and you get SS at 70 what will your likely income ...
by Dandy
Mon Nov 12, 2018 3:18 pm
Forum: Investing - Help with Personal Investments
Topic: Managing RMDs
Replies: 10
Views: 1036

Re: Managing RMDs

Depending on the size of your TIRA and the impact of future RMDs might have on your tax bracket you might want to minimize income for a year or so and do Roth conversions. Paying taxes at a lower rate now might save you later.
by Dandy
Mon Nov 12, 2018 7:34 am
Forum: Investing - Help with Personal Investments
Topic: Yearly Sanity Check
Replies: 7
Views: 1138

Re: Yearly Sanity Check

1. I am starting to feel like the Target Retirement Fund is causing increasing complexity for me. I am considering moving that entire balance to purchase the Vanguard Instl 500 Index, since this essentially tracks the Vanguard Total Stock Market (I keep reading that the 80% of the Total Stock Market...
by Dandy
Sun Nov 11, 2018 4:46 pm
Forum: Personal Finance (Not Investing)
Topic: Regrets from canceling whole life insurance policy - anyone out there?
Replies: 27
Views: 2943

Re: Regrets from canceling whole life insurance policy - anyone out there?

to buy whole life is usually a poor idea. Once it has been in force for a few decades the scale can tip depending on premiums and dividends. You can't recover the higher premiums paid --those are sunk costs. The decision whether to keep or cancel is a different decision. You can often work with the ...
by Dandy
Sun Nov 11, 2018 7:51 am
Forum: Investing - Theory, News & General
Topic: Take taxes into account when rebalancing?
Replies: 44
Views: 2226

Re: Take taxes into account when rebalancing?

I have the same problem since my large TIRA is mostly fixed income and my Taxable mostly equities that have large cap gains. Taking RMDs means increasing taxable income and depleting mostly fixed income. I also have a very conservative allocation of about 43% equities. I have done some rebalancing i...
by Dandy
Sat Nov 10, 2018 3:43 pm
Forum: Investing - Help with Personal Investments
Topic: A few asset allocation questions
Replies: 10
Views: 997

Re: A few asset allocation questions

A pension or social security is an income stream. It reduces your dependency on your portfolio to support your retirement. Your salary is also an income stream but people don't convert that into a pseudo bond. Let income streams be income and actual fixed income like bonds, Savings, Stable Value Fun...
by Dandy
Sat Nov 10, 2018 8:28 am
Forum: Investing - Help with Personal Investments
Topic: A few asset allocation questions
Replies: 10
Views: 997

Re: A few asset allocation questions

Determining your risk tolerance and translating that into an investment allocation is an educated guess translated into another educated guess. And those guesses would likely change depending on your investing experience and age. Most in the accumulation stage can tolerate market declines without to...
by Dandy
Sat Nov 10, 2018 8:00 am
Forum: Investing - Help with Personal Investments
Topic: Strategy during the last stock market decline
Replies: 56
Views: 5697

Re: Strategy during the last stock market decline

A lot depends on if you are in the accumulation stage or close to or in retirement. When I was in the accumulation stage I didn't like market declines but basically took no actions except maybe some rebalancing. In the 2008 major decline I was 60 and was suddenly forced to retire. I was forced more ...
by Dandy
Fri Nov 09, 2018 8:17 am
Forum: Personal Finance (Not Investing)
Topic: How much money are you leaving your kids after you die?
Replies: 234
Views: 14515

Re: How much money are you leaving your kids after you die?

Why risk your kids not giving it their all in life thinking they have daddy's money waiting for them? I think by the time your "kids" are adults in their 30's you will know whether they are giving it their all and are responsible with money. So, I think the risk of them becoming slackers because th...
by Dandy
Fri Nov 09, 2018 7:20 am
Forum: Personal Finance (Not Investing)
Topic: How much money are you leaving your kids after you die?
Replies: 234
Views: 14515

Re: How much money are you leaving your kids after you die?

What is the reason a young 24 year old should care how much money their parents have? This was related to a poster who was gifting large amounts of money to his daughter to help her. Maybe the daughter wanted to make sure her parents had enough money to do that without risking their retirement. We ...
by Dandy
Thu Nov 08, 2018 9:54 am
Forum: Personal Finance (Not Investing)
Topic: How to plan for bonus without knowing amount?
Replies: 32
Views: 1885

Re: How to plan for bonus without knowing amount?

Ah bonuses - how I miss them - they created something like a child's holiday excitement just before it was time to open presents! I used to think in term so percentage allocations e.g. 1/3 for long term savings, 1/3 for shorter term needs and 1/3 for fun. A late career change resulted in higher bonu...
by Dandy
Thu Nov 08, 2018 9:40 am
Forum: Personal Finance (Not Investing)
Topic: How much money are you leaving your kids after you die?
Replies: 234
Views: 14515

Re: How much money are you leaving your kids after you die?

I am fortunate that waiting until age 70 to collect SS and having a decent pension has come close to meeting our current lifestyle expenses. On top of that I have a nice nest egg conservatively invested. Both children and their spouses are good hard working people and we have two grandchildren. Our ...
by Dandy
Wed Nov 07, 2018 5:04 pm
Forum: Investing - Theory, News & General
Topic: Guide to work out your asset allocation?
Replies: 12
Views: 1095

Re: Guide to work out your asset allocation?

A good question but very hard to answer for oneself and even harder for someone else. One guide that helped me a bit was suggested by a former Boglehead. Take the percentage that you can afford to lose, double that and make that your equity allocation. I assume that is based on the general idea that...
by Dandy
Tue Nov 06, 2018 9:16 am
Forum: Investing - Theory, News & General
Topic: Stable value vs. bonds: the yield/volatility tradeoff
Replies: 26
Views: 1235

Re: Stable value vs. bonds: the yield/volatility tradeoff

I try to keep in mind that the "volatility" of intermediate bond funds is rather small and that over time the fund will be having the lower yielding bonds mature and be buying the higher yielding bonds so if you are in it for the longer term you shouldn't worry much. The real risk and volatility is ...
by Dandy
Tue Nov 06, 2018 8:49 am
Forum: Investing - Help with Personal Investments
Topic: E. Jones/Vanguard and now Fisher Investments
Replies: 36
Views: 4655

Re: E. Jones/Vanguard and now Fisher Investments

Some "advisers" complicate the client's portfolio because it makes it seem so overwhelming for them to consider managing it themselves. I would stay away from them and from Fisher. VG is cheaper but you basically have to follow their idea which tends to be Total Stock, Total International Stock and ...
by Dandy
Tue Nov 06, 2018 8:40 am
Forum: Investing - Help with Personal Investments
Topic: CDs on vanguard.com
Replies: 10
Views: 1630

Re: CDs on vanguard.com

Brokerage CDs are not well suited for use as an emergency fund especially in a rising rate environment. If you have an emergency you will have to try to sell the CD which might be at a loss. The VG Federal or Prime Money market funds seem to be a good option since they are paying a bit more than 2%.
by Dandy
Sun Nov 04, 2018 4:09 pm
Forum: Investing - Help with Personal Investments
Topic: AA with Bonds & Defined Benefit Pension(s)
Replies: 10
Views: 781

Re: AA with Bonds & Defined Benefit Pension(s)

I personally do (1) but arguments can certainly be made either way. I agree that arguments are made either way. But, why don't people use their salary as a pseudo bond? Or do they?? I just think it tends to make people more aggressive investors than they would be otherwise and it tends to mask the ...
by Dandy
Sun Nov 04, 2018 8:53 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard CD's vs. Paul Merriman Short Term GOV Bonds +TIPS
Replies: 14
Views: 1183

Re: Vanguard CD's vs. Paul Merriman Short Term GOV Bonds +TIPS

However, since I'm treating the bond portion as super-safe (ala Merriman), and since I really don't want to see a 5% loss when rates go up 1% , OR returns like .5% instead of 2.5% The allocation to intermediate government bond fund is likely to experience a drop of 5% or so in value when/if interes...
by Dandy
Sun Nov 04, 2018 7:59 am
Forum: Investing - Theory, News & General
Topic: [WSJ: The New Retirement Plan: Save Almost Everything, Spend Virtually Nothing]
Replies: 74
Views: 8415

Re: [WSJ: The New Retirement Plan: Save Almost Everything, Spend Virtually Nothing]

I think it is tough to be frugal (even cheap) during much of the accumulation stage and amass a nice nest egg and adjust your spending habits. There are extremes of course but most frugal people tend to hold on to much of that philosophy despite their wealth. I still price shop for gas, wine, etc. e...
by Dandy
Sun Nov 04, 2018 7:33 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard CD's vs. Paul Merriman Short Term GOV Bonds +TIPS
Replies: 14
Views: 1183

Re: Vanguard CD's vs. Paul Merriman Short Term GOV Bonds +TIPS

Why not treat short term brokerage CDs as all or part of the 6% short term government bond allocation. As the CDs mature decide whether to buy another short term CD or buy or add to the short term government bond fund?
by Dandy
Sun Nov 04, 2018 7:26 am
Forum: Investing - Help with Personal Investments
Topic: AA with Bonds & Defined Benefit Pension(s)
Replies: 10
Views: 781

Re: AA with Bonds & Defined Benefit Pension(s)

Pensions allow you to be more aggressive IF you choose to. You will be, if all goes well, in much better shape than if you didn't have pensions (especially, those with a 3% ongoing adjustment). But, I don't think people should turn their pension prospects into a pseudo bond for allocation purposes. ...
by Dandy
Sun Nov 04, 2018 7:08 am
Forum: Investing - Help with Personal Investments
Topic: RMDs and taxes
Replies: 28
Views: 2730

Re: RMDs and taxes

I'm in the place you are trying to avoid i.e. I'm 70 and pension and SS cover most of our expenses so RMDs put us in a high tax bracket with other SS and Medicare tax issues, etc. Since this is my first year for RMD I don't know the full impact. While I loved the tax advantages of using a 401k/TIRA ...
by Dandy
Sat Nov 03, 2018 8:10 am
Forum: Investing - Theory, News & General
Topic: How low can BND go?
Replies: 65
Views: 7689

Re: How low can BND go?

I would consider that market timing. How will you know when to switch from "online banks" to bond funds again? You will be fine over the long term holding BND. There is an aspect of market timing and the issue of when to leave other fixed income and return to BND. That being said it isn't the norma...
by Dandy
Sat Nov 03, 2018 7:49 am
Forum: Investing - Help with Personal Investments
Topic: Help a new guy!
Replies: 21
Views: 1675

Re: Help a new guy!

The Vanguard Star fund used to have a $1,000 minimum -- can't check if this is still the case since VG web site is not available this weekend due to maint. It is a diversified balanced fund that uses VG active funds vs index funds. Since you are investing in a tax sheltered account you could start t...
by Dandy
Fri Nov 02, 2018 4:33 am
Forum: Investing - Theory, News & General
Topic: What does your gut tell you; RMD now or in December?
Replies: 38
Views: 2200

Re: What does your gut tell you; RMD now or in December?

I don't have RMDs yet, but I always assumed RMDs would come from cash or things close to cash. Its the part of the portfolio that should have very minimal fluctuations. So timing really doesn't matter. Am I missing something? If you continue to take from cash or close to cash you might gradually ge...
by Dandy
Thu Nov 01, 2018 3:52 pm
Forum: Investing - Theory, News & General
Topic: What does your gut tell you; RMD now or in December?
Replies: 38
Views: 2200

Re: What does your gut tell you; RMD now or in December?

You should pick a date and automate the RMD process. That will avoid the yearly issue of when. I would opt for some time in early/mid November. Don't like to get financial matters done during the holiday/end of year rush if it can be avoided.
by Dandy
Wed Oct 31, 2018 9:06 am
Forum: Investing - Help with Personal Investments
Topic: Using Cash as actual Bond Allocation?
Replies: 15
Views: 1717

Re: Using Cash as actual Bond Allocation?

What does Bogleheads consider a % that is acceptable? If that refers to success rate and you have enough my answer is 100%. For most things a small percent of failure is acceptable but running out of money when you have no human capital and that could have been avoided is not acceptable to me. If i...
by Dandy
Wed Oct 31, 2018 6:22 am
Forum: Investing - Help with Personal Investments
Topic: Using Cash as actual Bond Allocation?
Replies: 15
Views: 1717

Re: Using Cash as actual Bond Allocation?

A modest allocation to cash is fine, especially if it allows peace of mind. Even with this cash you have a fairly aggressive allocation. You have seen the impact of not having enough cash on your emotions so you need to use that to find the allocation that makes sense. With Savings paying 1.9% and F...
by Dandy
Tue Oct 30, 2018 7:04 am
Forum: Investing - Theory, News & General
Topic: Are you too wealthy for a LIQUID emergency fund?
Replies: 29
Views: 4894

Re: Are you too wealthy for a LIQUID emergency fund?

Since you can't take it with you there comes a point where making sure you have enough assets to support your preferred life style until death becomes more important than growing your wealth. In retirement there is usually a fairly rapid loss of human capital coupled with a retirement of up to sever...
by Dandy
Mon Oct 29, 2018 5:45 am
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation & Investment Advice
Replies: 3
Views: 515

Re: Asset Allocation & Investment Advice

With your assets, savings rate and ages I don't know why you need to have such an aggressive allocation. You will likely meet or exceed your "number" just by savings alone.
by Dandy
Sun Oct 28, 2018 8:10 am
Forum: Investing - Help with Personal Investments
Topic: T.Rowe Price or Vanguard?
Replies: 10
Views: 1349

Re: T.Rowe Price or Vanguard?

I don't think the TRP perks are worth the relatively high fee. If you can find a VG fund or funds that meet your needs I would switch to VG.
by Dandy
Sun Oct 28, 2018 8:00 am
Forum: Investing - Help with Personal Investments
Topic: Who should I believe?
Replies: 48
Views: 7543

Re: Who should I believe?

It is hard to avoid the home bias since you usually feel you know your own country best. I am biased toward the US but kind of justify that with the size of our economy, etc. Overall, I think some allocation out of your home country is wise for equities. For fixed income a lot depends on what protec...
by Dandy
Fri Oct 26, 2018 8:34 am
Forum: Investing - Theory, News & General
Topic: What's Your Fixed Income Strategy?
Replies: 89
Views: 8578

Re: What's Your Fixed Income Strategy?

10-20 years of fixed income is a lot of money - good for both of you :happy Is that money all in one instrument or spread out in multiple accounts? If in multiple, how do you make decisions to move it? We have a TIRA, a Roth and a Joint Taxable account and Online Bank Savings and Money Market Accou...
by Dandy
Thu Oct 25, 2018 2:50 pm
Forum: Investing - Theory, News & General
Topic: Rich, Broke or Dead: Visualizing probabilities of outcomes in early retirement
Replies: 135
Views: 17345

Re: Rich, Broke or Dead: Visualizing probabilities of outcomes in early retirement

My spending plan is to gradually increase our standard of living from good to better than good. I don't want it to be great, good and then barely acceptable. Saving and living below your means is a Boglehead philosophy. Then you get to retirement of 30 years or more and often the conversation is wh...
by Dandy
Thu Oct 25, 2018 2:00 pm
Forum: Investing - Theory, News & General
Topic: Why I'm 100% stocks
Replies: 149
Views: 17193

Re: Why I'm 100% stocks

The part I quoted from the Estrada paper seems to tell a different story. He's talking about being 100% stocks in retirement (so no human capital) and says it has historically and in all countries had better downside protection (i.e. lower risk) than any other static portfolio. That is nice to know...
by Dandy
Thu Oct 25, 2018 9:10 am
Forum: Investing - Theory, News & General
Topic: Why I'm 100% stocks
Replies: 149
Views: 17193

Re: Why I'm 100% stocks

It is a lot easier to have a very aggressive investment portfolio if you don't have to rely on it currently for support. If your other income is not sufficient or if you are retired with no human capital a very aggressive allocation is often problematic. Let's face it, over time equities outperform ...
by Dandy
Thu Oct 25, 2018 8:53 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Wellesley alternative for taxable acct?
Replies: 7
Views: 1476

Re: Vanguard Wellesley alternative for taxable acct?

Tax managed Balanced Fund is an option if you use that and Intermediate tax free to get the overall equity allocation you desire. But taxable offers an ability to tax loss harvest if there are losses. So, something like 35% Total Stock Market and 65% Intermediate Tax Free might be better.
by Dandy
Wed Oct 24, 2018 7:40 am
Forum: Personal Finance (Not Investing)
Topic: Retirees: What keeps you up at night?
Replies: 56
Views: 6096

Re: Retirees: What keeps you up at night?

While I don't like equity market plunges my finances are in pretty good shape. I worry about our kids and grand kids. Our kids are married and work hard but it seems much harder to "make it". I wonder what things will be like for my grand kids. Finally, I worry about our health as we age. All in all...
by Dandy
Tue Oct 23, 2018 10:52 am
Forum: Investing - Theory, News & General
Topic: What's Your Fixed Income Strategy?
Replies: 89
Views: 8578

Re: What's Your Fixed Income Strategy?

D id you always have Principal Safe/Short Term Bond/Intermediate Bond or did you transition into this allocation from something else? if so, what was your decision point? For much of my career I had access to a Stable Value Fund which at one time paid 11% but got down to about 5%. So, I didn't have ...
by Dandy
Tue Oct 23, 2018 8:23 am
Forum: Investing - Theory, News & General
Topic: Rich, Broke or Dead: Visualizing probabilities of outcomes in early retirement
Replies: 135
Views: 17345

Re: Rich, Broke or Dead: Visualizing probabilities of outcomes in early retirement

Wouldn't your analogy be more accurate to extend it so that at the start of the trip you'd want to spend a lot of time exploring the desert, thus needing more water, and towards the end, you'll maximize your time in the shade, or travel at night, and bring down your consumption? As I said no analog...
by Dandy
Tue Oct 23, 2018 7:10 am
Forum: Investing - Theory, News & General
Topic: Rich, Broke or Dead: Visualizing probabilities of outcomes in early retirement
Replies: 135
Views: 17345

Re: Rich, Broke or Dead: Visualizing probabilities of outcomes in early retirement

I look at retirement funding as a journey through the desert that might take say 20 or 30 days or even slightly more. Temperatures might range from 100 to 30 degrees. Experts say you need a quart of water a day 95% of the time. I'm not bringing 20 or 30 quarts - I'm bringing 50 quarts. It's okay wit...
by Dandy
Mon Oct 22, 2018 9:44 pm
Forum: Investing - Theory, News & General
Topic: What's Your Fixed Income Strategy?
Replies: 89
Views: 8578

Re: What's Your Fixed Income Strategy?

Years to retirement or already in retirement?(how many years in?) Age 70 ten years into retirement . Fixed income allocation as part of total allocation (Equity/Fixed Income) 43/57 Allocation within the the fixed income allocation (Bond funds, CDs, Money Market, etc..) 17% Principal Safe (e.g.CDs, ...
by Dandy
Mon Oct 22, 2018 9:22 pm
Forum: Investing - Help with Personal Investments
Topic: Anyone using VanguardAdvantage with free checking, Visa Gold Debit/ATM, electronic bill pay, direct deposit, plus more?
Replies: 38
Views: 4821

Re: Anyone using VanguardAdvantage with free checking, Visa Gold Debit/ATM, electronic bill pay, direct deposit, plus mo

I have the advantage account but other than writing a few checks I haven't used it. It was going to be my go to checking account. But when I was ready it paid almost nothing not the 2+% it is paying now. I have pension and SS sent to an online Savings paying a bit less than that and 2X a month trans...