Search found 5450 matches

by Dandy
Sun Dec 09, 2018 12:32 pm
Forum: Investing - Help with Personal Investments
Topic: TIPS continue or quit?
Replies: 3
Views: 378

Re: TIPS continue or quit?

I'm no expert on TIPs and the VG TIPS fund has low returns but isn't their purpose to be there for when there is unexpected inflation vs growth or yield? I'm 70 and have a decent allocation to the TIPS fund so I understand the concern. It seems best suited for those in retirement since inflation ove...
by Dandy
Sun Dec 09, 2018 9:15 am
Forum: Investing - Help with Personal Investments
Topic: Managing my own portfolio
Replies: 12
Views: 1182

Re: Managing my own portfolio

"...and survive indefinitely using the 4% rule. " The "safe withdrawal rate of 4%" can be misleading. I believe it is better thought of as a reasonable initial withdrawal rate . No withdrawal rate is set it and forget it. The 4% idea is based on past performance and was projected to last for 30 year...
by Dandy
Sat Dec 08, 2018 12:24 am
Forum: Investing - Help with Personal Investments
Topic: Pension vs Lump Sum payment
Replies: 7
Views: 768

Re: Pension vs Lump Sum payment

The big risks in taking the pension that I would be concerned about are inflation and the company not being able to meet their pension obligation. The big risks in not taking the pension that I would be concerned about is mismanaging the lump sum and either running out of money or having to rely too...
by Dandy
Fri Dec 07, 2018 9:48 am
Forum: Investing - Help with Personal Investments
Topic: Managing my own portfolio
Replies: 12
Views: 1182

Re: Managing my own portfolio

5. What changes would you recommend to get to an 80/20 portfolio? Is 80/20 appropriate? The key to me is what is your number? You are adding close to 90k per year, which is great, but depending on your number you may get there or exceed it with a less aggressive allocation. I would suggest looking ...
by Dandy
Thu Dec 06, 2018 9:56 am
Forum: Investing - Help with Personal Investments
Topic: Retirement planning--how many years of cash equiv should I aim to have?
Replies: 16
Views: 2295

Re: Retirement planning--how many years of cash equiv should I aim to have?

Just a comment on "cash" being a drag on performance. It was more true a few years ago when interest rates were so low - remember Prime paying .01%? I think I do. - it is now paying a bit more than 2.3% vs Total Bond yield of 3.37 but YTD down 1.39% (not a big deal), and a 2 yr VG brokerage CD is pa...
by Dandy
Thu Dec 06, 2018 9:36 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard advisor suggesting 90/10
Replies: 41
Views: 3034

Re: Vanguard advisor suggesting 90/10

90/10 for a couple in their mid 30's is a bit aggressive. Seems to fit VG's idea of your risk tolerance rather than yours. If you don't have much investment savvy and/or time you might consider a balanced fund(s), TD or Life Strategy fund with a less aggressive allocation. Just make sure you decide ...
by Dandy
Thu Dec 06, 2018 9:20 am
Forum: Investing - Help with Personal Investments
Topic: Multi Account Re-balance Question
Replies: 11
Views: 597

Re: Multi Account Re-balance Question

I don't want growth in all accounts. I am doing Roth conversions piecemeal over the next few years and I would prefer that the source of the Roth conversions (tax-deferred accounts) have little growth, no growth, or even losses while the destination of the Roth conversions have tremendous growth an...
by Dandy
Thu Dec 06, 2018 8:20 am
Forum: Investing - Theory, News & General
Topic: Who else is getting excited? [about the market]
Replies: 139
Views: 11746

Re: Who else is getting excited?

Corrections are a buying opportunity and usually good for younger aggressive investors. If it turns out to be a black swan type of equity plunge that can be a different story. Companies fail, people lose jobs - even young aggressive investors. So, enjoy but be alert. In 2008 I worked for a large bro...
by Dandy
Thu Dec 06, 2018 8:06 am
Forum: Investing - Help with Personal Investments
Topic: Multi Account Re-balance Question
Replies: 11
Views: 597

Re: Multi Account Re-balance Question

Within reason I suggest have a bit of both equities and fixed income in all accounts. You usually want some growth in all accounts and an all fixed income account has little prospect for growth other than additional contributions.
by Dandy
Wed Dec 05, 2018 3:01 pm
Forum: Personal Finance (Not Investing)
Topic: Best online banking accounts?
Replies: 35
Views: 3448

Re: Best online banking accounts?

As a Vanguard Advantage Account holder I'm surprised that they have such little support. I wonder if they will discontinue it since they certainly don't promote it and make it hard to find on their web site. I like having check writing on the Fed Mondy market account. Awhile ago I was going to use i...
by Dandy
Wed Dec 05, 2018 8:22 am
Forum: Personal Finance (Not Investing)
Topic: Best online banking accounts?
Replies: 35
Views: 3448

Re: Best online banking accounts?

Check ratings and reviews on depositaccounts.com. I have used Ally, Discover, Alliant Credit Union and all have been great for Savings (all currently pay 2%), Alliant has a better checking account that pays 0.65% on all balances and has many other nice features e.g reimburses ATM fees up to $20/mont...
by Dandy
Wed Dec 05, 2018 8:09 am
Forum: Personal Finance (Not Investing)
Topic: Why Is Insurance Worth It (Analytically)?
Replies: 89
Views: 4127

Re: Why Is Insurance Worth It (Analytically)?

For most insurance, maybe all if you are lucky it is a losing deal. You pay premiums for home insurance and never have a fire, major theft etc. Pay for health insurance and all you get is an occasional cold. Never have more than a fender bender but paid all that auto insurance. I think most people t...
by Dandy
Wed Dec 05, 2018 7:40 am
Forum: Investing - Help with Personal Investments
Topic: Vang Wellesley for Retirement
Replies: 37
Views: 4190

Re: Vang Wellesley for Retirement

I use Balanced Index and Wellesley Income to account for all my TIRA equity exposure. I supplement that with various fixed income products to bring the overall allocation to the desired level. So far I like the arrangement.
by Dandy
Tue Dec 04, 2018 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: Life Advice (Financial + Health)
Replies: 17
Views: 1556

Re: Life Advice (Financial + Health)

I don't know what other job options you have that will give you decent income and less stress. But, I don't think it is a good idea to expose your body to that for very long. I swore that I wouldn't die slumped over my desk or my snow shovel. Glad that didn't happen -- yet (still have shovel exposur...
by Dandy
Tue Dec 04, 2018 11:07 am
Forum: Investing - Help with Personal Investments
Topic: Will we make it saving only in employer plans?
Replies: 58
Views: 4089

Re: Will we make it saving only in employer plans?

It seems a lot tougher to make ends meet than it used to. Of course we have more "toys" than we used to. I can't imagine when I started out paying for TV, computers, cell phones (just a land line with charges non local calls!). My daughters and their husbands all have decent jobs but have trouble ma...
by Dandy
Mon Dec 03, 2018 11:33 am
Forum: Investing - Help with Personal Investments
Topic: CD vs Bond ETF (SCHZ)
Replies: 1
Views: 241

Re: CD vs Bond ETF (SCHZ)

I think you understand both reasonably well. A bit more safe yield from the CD (I assume a brokerage CD) vs a slightly lower bond fund yield which has a chance to have it's value affect by defaults ( usually not a big deal in a "normal" bond fund like Total bond fund) and loss of value (temporarily)...
by Dandy
Sun Dec 02, 2018 10:20 am
Forum: Investing - Help with Personal Investments
Topic: What is the lowest 'safe' emergency fund we should have?
Replies: 40
Views: 3831

Re: What is the lowest 'safe' emergency fund we should have?

I''m surprised at the goal of having the lowest safe e fund. Even to the point of taking on credit card debt? You haven't discussed your financial picture/overall allocation but you seem to be doing very well. Having the "normal" 6-12 months worth of expenses would still be a good idea. With cash-li...
by Dandy
Sat Dec 01, 2018 5:32 pm
Forum: Investing - Help with Personal Investments
Topic: Help me understand money market mutual funds
Replies: 7
Views: 871

Re: Help me understand money market mutual funds

Vanguard Federal Money Market yields about 2.19% which is at the high end of what most online banks pay on their Savings. You can also get check writing but not FDIC. The risk is low especially since this particular fund invests in government issued debt not all necessarily backed by the full faith ...
by Dandy
Sat Dec 01, 2018 2:15 pm
Forum: Investing - Help with Personal Investments
Topic: Basic Bucket Theory
Replies: 40
Views: 3782

Re: Basic Bucket Theory

The point is that you could have gone 100% and been fine. Maybe, but that is an assumption based on prior asset performance and knowing our expenses in advance. Picking either 60/40 or 40/60 would be more reasonable choices for most people. Agree - most people take an educated guess at their risk t...
by Dandy
Sat Dec 01, 2018 11:03 am
Forum: Investing - Help with Personal Investments
Topic: Basic Bucket Theory
Replies: 40
Views: 3782

Re: Basic Bucket Theory

You had a hard time deciding because the choice didn't matter. With over 40x expenses, you can invest pretty much however you want. 100% stocks works. 100% bonds works. You just need to balance your desire for more money (and there are very few people that don't want more money. How many people do ...
by Dandy
Sat Dec 01, 2018 7:45 am
Forum: Investing - Help with Personal Investments
Topic: Basic Bucket Theory
Replies: 40
Views: 3782

Re: Basic Bucket Theory

I like Dr. Wm Bernstein's idea of having 20-25 years of withdrawals in "safe" products (my term) and the rest invest anyway you want. This was suggested for retirees that had "enough" assets. In retirement I had a hard time deciding what overall allocation was right for us. Was 40/60 too conservativ...
by Dandy
Thu Nov 29, 2018 5:25 pm
Forum: Investing - Help with Personal Investments
Topic: Father seeking advice: how to support?
Replies: 9
Views: 1238

Re: Father seeking advice: how to support?

It is tough but I think if he is too trusting and declined coming to this forum then you probably need to go with him to the fee only financial adviser. Two head are better than one. You can get some information delay a decision and ask question to this forum for some suggestions. Lots of work but I...
by Dandy
Thu Nov 29, 2018 5:15 pm
Forum: Investing - Help with Personal Investments
Topic: When to cash in EE Savings Bonds
Replies: 16
Views: 1617

Re: When to cash in EE Savings Bonds

Go on Treasury Direct to see what the bonds are worth and what interest rate it is earning. Cashing in paper bonds can be a bit of a hassle. If you are not cashing them in the immediately and/or if it is a hassle to cash them, put them online at Treasury Direct. You can specify a bank or 2 and then ...
by Dandy
Wed Nov 28, 2018 2:08 pm
Forum: Investing - Help with Personal Investments
Topic: Pay extra into mortgage or invest, considering Trump's tax plan ?
Replies: 29
Views: 2218

Re: Pay extra into mortgage or invest, considering Trump's tax plan ?

I would allocation some to each effort. Maybe 1/3 to mortgage reduction and 2/3 to investments. You said you are somewhat behind investing. I would not try to be overly aggressive to try to make that up. A very good savings rate and a moderate investment allocation should be fine.
by Dandy
Mon Nov 26, 2018 7:34 am
Forum: Investing - Theory, News & General
Topic: What to track/manage: Spending vs Saving
Replies: 10
Views: 1016

Re: What to track/manage: Spending vs Saving

I try to focus on knowing my true run rate. By that I mean my normal expenses. So, I exclude large one time expenses. What you want to get at is ongoing expense creep e.g. eating out more, taxes, insurance, gifts, ATM withdrawals etc. That tells me whether rising expenses are built in vs one time. I...
by Dandy
Mon Nov 26, 2018 7:00 am
Forum: Investing - Help with Personal Investments
Topic: Hold bonds in taxable or tax-deferred accounts? I am confused
Replies: 23
Views: 4856

Re: Hold bonds in taxable or tax-deferred accounts? I am confused

I think the idea of fixed income in tax advantaged and equities in taxable generally makes sense. I would suggest that having a tax advantaged allocation of say, 20/80 and a taxable allocation of 80/20 is something to consider. I use the term fixed income vs bonds/bond funds. You need to keep in min...
by Dandy
Mon Nov 26, 2018 6:13 am
Forum: Investing - Help with Personal Investments
Topic: Am I too risk averse?
Replies: 45
Views: 3357

Re: Am I too risk averse?

Hi Bogleheads, I’m in my late forties, I have about $3.5M in taxable and my current asset allocation looks like this: 32% Treasury bills 28% Stocks 18% CDs 7% Checking & Savings 5% Money market 5% Municipal bonds 5% TIPS On one hand, I realize it’s a very conservative portfolio, and I definitely do...
by Dandy
Sun Nov 25, 2018 4:33 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review Request
Replies: 16
Views: 1556

Re: Portfolio Review Request

By my count you have 24 funds. Hard to keep track/balance etc so many different and possibly overlapping funds. For all the tax advantaged accounts you may be able to get the same result with fewer funds. Each account may not have the desired allocation but overall you might be ok. Some accounts hav...
by Dandy
Sun Nov 25, 2018 1:29 pm
Forum: Investing - Theory, News & General
Topic: Using Short-Term Bonds for my future housing payment fund (3-5 years out)?
Replies: 5
Views: 414

Re: Using Short-Term Bonds for my future housing payment fund (3-5 years out)?

I like the Ltd term tax exempt with a current 2.22% yield or the short term treasury index fund with a 2.80% current yield. I'd like to get some tax help in the taxable account if that make sense to you. You might also consider a VG brokerage CD - the 3 year is yielding 3.10%. (if you go with the br...
by Dandy
Sun Nov 25, 2018 11:18 am
Forum: Investing - Help with Personal Investments
Topic: New to investing, how would I select appropriate bonds?
Replies: 19
Views: 1499

Re: New to investing, how would I select appropriate bonds?

Bonds and bond funds seem simple but they can be a bit tricky. Except for Treasuries which come with a Federal Government guarantee the key risk of bonds is default i.e. the issuer can't pay you when the bond matures. Most bond funds invest in a variety of issuers to mitigate against that risk. So,...
by Dandy
Sun Nov 25, 2018 11:04 am
Forum: Personal Finance (Not Investing)
Topic: HSBC online savings; comments?
Replies: 14
Views: 1440

Re: HSBC online savings; comments?

most of the big brick banks offer horrible service/treatment of existing customers. Many online banks offer a better experience. Though you have to be careful with all banks and credit unions since many have "gotchas" that are hard to spot until they "gotcha". BofA 5yr CD pays .75% vs Ally 3.10% Cha...
by Dandy
Sun Nov 25, 2018 10:07 am
Forum: Investing - Theory, News & General
Topic: You’re Not As Rich As You Think You Are, And That’s Okay
Replies: 20
Views: 6023

Re: You’re Not As Rich As You Think You Are, And That’s Okay

In retirement with the loss of human capital your portfolio is what it is but you start to think it is more stable than it is especially after a record bull market. This can lead to making questionable decisions. One way to look at it would be to see what your portfolio would be less 50% of equities...
by Dandy
Sun Nov 25, 2018 8:43 am
Forum: Investing - Help with Personal Investments
Topic: New to investing, how would I select appropriate bonds?
Replies: 19
Views: 1499

Re: New to investing, how would I select appropriate bonds?

Bonds and bond funds seem simple but they can be a bit tricky. Except for Treasuries which come with a Federal Government guarantee the key risk of bonds is default i.e. the issuer can't pay you when the bond matures. Most bond funds invest in a variety of issuers to mitigate against that risk. So, ...
by Dandy
Sat Nov 24, 2018 3:33 pm
Forum: Investing - Theory, News & General
Topic: What is your allocation to U.S. and International?
Replies: 119
Views: 7016

Re: What is your allocation to U.S. and International?

International equity about 7% of my equity allocation + plus a small allocation within Wellesley Income Fund. International bond 0% direct but some included in allocation of Short Term Bond fund. I would add a bit to international equities but I'm at the high point of my equity allocation and RMDs f...
by Dandy
Sat Nov 24, 2018 2:37 pm
Forum: Investing - Help with Personal Investments
Topic: Am I Wrong for being 100% Equities ?
Replies: 70
Views: 6943

Re: Am I Wrong for being 100% Equities ?

Why would you want to be 100% in equities in retirement? You have a potentially nice nest egg to retire with and likely a pension and SS. College funding is on track. So, why 100% -- because you can? Trying to turn 2 million into 4 or 5? Because it has worked for you in the past? During the accumula...
by Dandy
Fri Nov 23, 2018 6:50 am
Forum: Investing - Help with Personal Investments
Topic: Question about retirement. Do I build enough cash/investments to draw money from or build investments that earn me money
Replies: 14
Views: 2138

Re: Question about retirement. Do I build enough cash/investments to draw money from or build investments that earn me m

It is kind of an ideal for many to just have enough dividends and interest to live on so that they don't need to touch their savings/investments. Maybe that was more possible for our fathers/grandfathers who had a pension, social security and high interest/dividend rates and low inflation for long p...
by Dandy
Thu Nov 22, 2018 1:16 pm
Forum: Investing - Theory, News & General
Topic: Taxable Account in Retirement: What Is Reason to Direct Dividends to MM for Spending/Not Reinvest?
Replies: 21
Views: 2238

Re: Taxable Account in Retirement: What Is Reason to Direct Dividends to MM for Spending/Not Reinvest?

Tax on an RMD is just another expense. If you need to sell some assets to meet expenses, so be it. RMDs may cause an expense (taxes) but maintaining one's AA in the face of selling assets is an issue independent of the RMD itself. The point is that RMDs from a fixed income heavy TIRA, which are man...
by Dandy
Thu Nov 22, 2018 11:32 am
Forum: Investing - Theory, News & General
Topic: Taxable Account in Retirement: What Is Reason to Direct Dividends to MM for Spending/Not Reinvest?
Replies: 21
Views: 2238

Re: Taxable Account in Retirement: What Is Reason to Direct Dividends to MM for Spending/Not Reinvest?

RMDs need not affect your AA. Anything you sell in an IRA can be immediately re-bought in your taxable account, leaving your AA unchanged. Kinda of true for the after tax portion of the RMDs -- so say 70% reinvested - still depletes fixed income on a net basis. Adds up over time. Of course that ass...
by Dandy
Thu Nov 22, 2018 9:36 am
Forum: Investing - Theory, News & General
Topic: Reducing number of funds by supplementing LifeStrategy
Replies: 16
Views: 2159

Re: Reducing number of funds by supplementing LifeStrategy

Vanguard could continue to alter the allocation within VASGX, thereby throwing off the overall allocation. A little mentioned "risk". Vanguard has not made many changes recently but has in the past and reserves the right to do so. It is best to hold LS or TD funds in a tax advantaged account for th...
by Dandy
Thu Nov 22, 2018 9:16 am
Forum: Investing - Theory, News & General
Topic: Taxable Account in Retirement: What Is Reason to Direct Dividends to MM for Spending/Not Reinvest?
Replies: 21
Views: 2238

Re: Taxable Account in Retirement: What Is Reason to Direct Dividends to MM for Spending/Not Reinvest?

I followed the normal asset placement advice i.e. having mostly fixed income in my TIRA and mostly equities in my taxable account. I'm 70 and have a desired allocation of 43/57 or so. I am fortunate to have a large balance in both my TIRA and taxable. As I deplete my TIRA due to RMDs that has and wi...
by Dandy
Thu Nov 22, 2018 7:05 am
Forum: Personal Finance (Not Investing)
Topic: Am I buying too much house??! What kind of mortgage?
Replies: 33
Views: 6710

Re: Am I buying too much house??! What kind of mortgage?

If I were single, 30 and making that kind of money I would consider renting a luxury apartment. Pool, gym, no home and landscaping obligations, etc. Also, much more flexibility to relocate if that opportunity or desire emerges.
by Dandy
Thu Nov 22, 2018 6:59 am
Forum: Investing - Theory, News & General
Topic: What financial advice have you been most grateful for?
Replies: 50
Views: 4218

Re: What financial advice have you been most grateful for?

1. Every time you increase your income increase the amount you are saving for retirement -- you will never miss it because you never got used to it. People who are living in your neighborhood are doing fine and earning less than you. 2. The whole Boglehead idea of low cost, passive/index, etc. inves...
by Dandy
Thu Nov 22, 2018 6:42 am
Forum: Investing - Help with Personal Investments
Topic: Investment strategy - timing issue
Replies: 23
Views: 1452

Re: Investment strategy - timing issue

It seems you have conflicting issues i.e. fear of investing in an 'over valued' market and the "need" to get substantial growth in a decade to support leaving your stressful job at 45. The latter goal may be overly ambitious. You can't stay on the sidelines and meet your age 45 goal. So, you need to...
by Dandy
Tue Nov 20, 2018 7:21 pm
Forum: Personal Finance (Not Investing)
Topic: Review after one month with Fidelity Cash Management
Replies: 58
Views: 17176

Re: Review after one month with Fidelity Cash Management

I would prefer to have a sweep account to SPRXX (Fidelity Money Market, 0.68% yield), I realize the OP wanted this account for international ATM reasons. But, the VG cash management account the Advantage Account uses the Fed Money Market Fund paying 2.16% last time I looked. I written checks but ha...
by Dandy
Tue Nov 20, 2018 7:08 am
Forum: Investing - Help with Personal Investments
Topic: Ally No Penalty CD vs. Ally MM Savings?
Replies: 15
Views: 1629

Re: Ally No Penalty CD vs. Ally MM Savings?

when dealing with banks, especially on line banks, I like to have a checking or MM account. Ally is a good on line bank but sometimes on line banks have issues with redeeming a CD and transferring money to the holder in a timely fashion. When you have a checking or MM account with them moving money ...
by Dandy
Mon Nov 19, 2018 5:59 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation for Recent Retiree
Replies: 20
Views: 1434

Re: Asset Allocation for Recent Retiree

I’m quite sure that Bernstein does NOT recommend keeping 25 years worth of expenses in cash. That’d be a huge amount of cash, and recklessly conservative IMHO. I roughly follow Dr. Bernstein's idea. He recommends to have 20 to 25 years worth drawdown dollars in "safe" (my word) fixed income and inv...
by Dandy
Mon Nov 19, 2018 11:59 am
Forum: Personal Finance (Not Investing)
Topic: The psychology of withdrawing from your portfolio
Replies: 58
Views: 5855

Re: The psychology of withdrawing from your portfolio

Oh yes it is a major mental challenge to go from saving/investing/company matches to withdrawing. I retired in 2008 at age 60- not a great time. I watched my portfolio drop from more than enough to probably not enough. I was lucky to have a modest pension, employer health insurance and no debt. But,...
by Dandy
Mon Nov 19, 2018 7:49 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Target Retirement/Life Strategy vs 4 Fund DIY balancing
Replies: 22
Views: 2864

Re: Vanguard Target Retirement/Life Strategy vs 4 Fund DIY balancing

I'd appreciate any help on making these decisions: 1. between automatic daily rebalancing funds, and DIY 3-4 Fund Portfolio 2. Choosing the "4 yrs Emergency expenses" backup described above as part of either plan as a safety net against sequence risk early in retirement. 1. A balanced, TD or LS fun...
by Dandy
Mon Nov 19, 2018 6:57 am
Forum: Investing - Help with Personal Investments
Topic: Current Retirees: Do you touch your principal?
Replies: 79
Views: 8223

Re: Current Retirees: Do you touch your principal?

income from various sources covers our basic expense run rate. Draw down a bit from principal to cover large expenses e.g. new roof, car etc. Decided to use most of RMD to gift "early inheritance" to heirs so that would count as a principal draw down. Not using principal can be comforting but can le...
by Dandy
Sun Nov 18, 2018 3:18 pm
Forum: Investing - Theory, News & General
Topic: Prime MM vs 6-month Treasury in IRA
Replies: 91
Views: 9383

Re: Prime MM vs 6-month Treasury in IRA

I don't see it. As of this posting, Treasury and Federal MM have exactly the same SEC yield, while Prime is 11bp higher.
my bad. :oops:
Dandy