Search found 5204 matches

by Dandy
Tue Aug 14, 2018 2:45 pm
Forum: Investing - Help with Personal Investments
Topic: Low seven figure windfall looking for advice
Replies: 8
Views: 1490

Re: Low seven figure windfall looking for advice

You don't seem to have a need to take much risk given your income, assets and windfall and that you do and plan to live somewhat below your means. So, you need to figure out what overall allocation now makes sense. It may be that a shift to more asset preservation vs growth is in play. Maybe a 55/45...
by Dandy
Tue Aug 14, 2018 8:08 am
Forum: Investing - Help with Personal Investments
Topic: Asked my advisor about fees and here's their reply
Replies: 40
Views: 5025

Re: Asked my advisor about fees and here's their reply

Most of the value of a good adviser and most of his/her work is at the front end. That is when they get to know your assets, risk tolerance, help to formulate an investment allocation/plan etc. It can take a lot of training to get the proper expertise and time to formulate and explain a good tailore...
by Dandy
Sun Aug 12, 2018 9:21 am
Forum: Investing - Help with Personal Investments
Topic: “Safe” investment approaching retirement
Replies: 17
Views: 1638

Re: “Safe” investment approaching retirement

One should be completely satisfied with any ol' bond fund that won't drop more than 10% over a year or so. I think that is very much overstated. It implies everyone no matter their age, financial condition or risk tolerance or fixed income allocation should be comfortable with a possible 10% loss/d...
by Dandy
Sun Aug 12, 2018 7:48 am
Forum: Investing - Help with Personal Investments
Topic: “Safe” investment approaching retirement
Replies: 17
Views: 1638

Re: “Safe” investment approaching retirement

I roughly follow Dr. Wm Bernstein's approach of having 20 years worth of expected drawdown dollars in "safe" products. For me that is about 1/3 in "no loss of principal" products e.g. CDs, money market funds, on line savings accounts. Another 1/3 is in short term bond funds e.g. short term bond inde...
by Dandy
Sat Aug 11, 2018 7:47 am
Forum: Investing - Theory, News & General
Topic: What's a good way to calculate when I have won the game??
Replies: 23
Views: 4195

Re: What's a good way to calculate when I have won the game??

Here is what I would do. 1. estimate retirement expenses 2. estimate retirement income 3. calculation the amount of income needed to have retirement income equal retirement expenses. Let's call that gap "residual expenses" 4. How many dollars worth of residual expenses do you need to fund retirement...
by Dandy
Thu Aug 09, 2018 9:17 am
Forum: Investing - Help with Personal Investments
Topic: What to do with Whole Life Policy
Replies: 13
Views: 930

Re: What to do with Whole Life Policy

Most insurance companies will allow you to make the policy paid up (i.e. no future premiums but reduced dividends and face amount). If insurance is needed that might be a way to go. Or they may agree to reduce the face value of the insurance so that dividends will usually pay the premium. (whole lif...
by Dandy
Tue Aug 07, 2018 5:04 pm
Forum: Investing - Theory, News & General
Topic: "Don't Obsess About Expense Ratios"
Replies: 210
Views: 17450

Re: "Don't Obsess About Expense Ratios"

If the funds you are interested in turn out to be lower at Fidelity, especially with tax advantaged assets, there is not a great reason not to move to Fidelity. They seem to be ahead of Vanguard on service ratings even on this forum. The concerns I have are that I may want funds that aren't zero ER ...
by Dandy
Mon Aug 06, 2018 9:38 am
Forum: Personal Finance (Not Investing)
Topic: Will you pay for your kids' college/graduate education?
Replies: 366
Views: 13937

Re: Will you pay for your kids' college/graduate education?

that we will be committing child abuse. You are right to consider that a terrible statement or implication. There are many legitimate reasons for parents not to fund any or all of higher education. I support doing so if parents can afford to but understand that parenting is more of an art not a sci...
by Dandy
Mon Aug 06, 2018 8:29 am
Forum: Personal Finance (Not Investing)
Topic: Will you pay for your kids' college/graduate education?
Replies: 366
Views: 13937

Re: Will you pay for your kids' college/graduate education?

For those who can afford to pay but decide that they don't want to pay for college. If public high school was not required and not "free" would you not pay for it and allow your children not to attend? The reason I ask this is that I feel college is now what high school used to be i.e. kind of a min...
by Dandy
Mon Aug 06, 2018 7:08 am
Forum: Personal Finance (Not Investing)
Topic: Dear BH, what are non-BH [financial] actions you do?
Replies: 71
Views: 4510

Re: Dear BH, what are non-BH actions you do?

1. I don't have a written IPS 2. I don't overly fuss about rebalancing especially sub accounts. If my equity/fixed income is within my band I'm pretty much ok. Whether or not my allocation to short term bonds is a bit higher than planned - not to worry. If I have to rebalance I'm fine with a gradual...
by Dandy
Mon Aug 06, 2018 6:03 am
Forum: Personal Finance (Not Investing)
Topic: Will you pay for your kids' college/graduate education?
Replies: 366
Views: 13937

Re: Will you pay for your kids' college/graduate education?

Paid almost all the college expenses for 2 children including grad school. There were some minor awards, work reimbursements, etc that reduced our outlay but essentially it was all. Kids were excellent students, applied themselves, went to state colleges and graduated with excellent grades. They are...
by Dandy
Sun Aug 05, 2018 11:29 am
Forum: Personal Finance (Not Investing)
Topic: "Skin in the game"
Replies: 105
Views: 6870

Re: "Skin in the game"

Parenting is somewhat of an art vs a strict science. We often receive no formal training (much like investing or money management!) so we tend to rely on how we were parented -- either adopting what we liked or rejecting what we didn't. It is easy to spoil children especially if we are blessed with ...
by Dandy
Sun Aug 05, 2018 9:14 am
Forum: Investing - Theory, News & General
Topic: US and UK Deep History: Safe Withdrawal Rates
Replies: 38
Views: 3131

Re: US and UK Deep History: Safe Withdrawal Rates

I have found from most retirees posting here (I'm still 30 years away) that withdrawing isn't as scary as it seems (which I admit seems intimidating). I was forced to retire in 2008 at age 60- really bad timing. :oops: I had lots of risk mitigation e.g. a modest pension and health insurance from pr...
by Dandy
Sun Aug 05, 2018 8:41 am
Forum: Personal Finance (Not Investing)
Topic: Earn 1.5% on your checking account without the usual hoops (at Fidelity)
Replies: 34
Views: 1853

Re: Earn 1.5% on your checking account without the usual hoops (at Fidelity)

I have a Vanguard Advantage Account (a cash management account) which for some reason they not only don't advertise but it is hard to find information about it. Originally, I was going to use that as my primary checking account but when money market rates went almost to zero I kept the account but f...
by Dandy
Sun Aug 05, 2018 8:00 am
Forum: Investing - Theory, News & General
Topic: US and UK Deep History: Safe Withdrawal Rates
Replies: 38
Views: 3131

Re: US and UK Deep History: Safe Withdrawal Rates

So, I guess historically a 3% or slightly more withdrawal rate looks pretty safe. So that or a bit higher might be a reasonable starting point when trying to make that initial withdrawal plan. Other than as a basis for an initial withdrawal approach I don't think that results in a set it and forget ...
by Dandy
Sun Aug 05, 2018 7:17 am
Forum: Investing - Help with Personal Investments
Topic: Market Timing Bonds vs. Money Market with Rising Interest Rates
Replies: 27
Views: 2836

Re: Market Timing Bonds vs. Money Market with Rising Interest Rates

The Fed under the past and current leader has been fairly consistent about gradual rate rises over the past several years. Their actions have somewhat predictable market reactions. They are not like market gurus who are guessing at what rates will be -- they actually change rates. The Fed has made a...
by Dandy
Fri Aug 03, 2018 8:08 am
Forum: Personal Finance (Not Investing)
Topic: Vehicle Leasing...Again ;)
Replies: 23
Views: 1784

Re: Vehicle Leasing...Again ;)

If you have the money to make the financing payment on the vehicle you want would it not be better to lease it anyway; assuming you invest the difference saved on the lease payment at a average market return in a sp500 fund or similar investment? I have never leased a vehicle and probably won't. He...
by Dandy
Fri Aug 03, 2018 7:45 am
Forum: Personal Finance (Not Investing)
Topic: Question to retirees - money or work/life balance?
Replies: 46
Views: 5186

Re: Question to retirees - money or work/life balance?

I've always been pretty good at the work/life balance issue. Early in the accumulation stage I was a bit toward work/saving than enjoying life. I wanted to make sure I had a bit of a nest egg before changing my frugal aka cheap ways. Once married with children I kept the focus on savings but also ma...
by Dandy
Fri Aug 03, 2018 5:58 am
Forum: Investing - Help with Personal Investments
Topic: Unexpected early retirement - requesting advice
Replies: 56
Views: 6571

Re: Unexpected early retirement - requesting advice

Sorry about your medical issue I'm sure that has come out of left field and is a cause of much stress. You seem to have enough assets but I'm not sure I'd stick with a 70/30 allocation especially after such a long bull market and with the prospects of future employment uncertain to say the least. I'...
by Dandy
Thu Aug 02, 2018 5:42 pm
Forum: Investing - Theory, News & General
Topic: 4% rule .. but when?
Replies: 35
Views: 4111

Re: 4% rule .. but when?

No retirement investment or withdrawal plan is set it an forget it. The younger you are the more that applies. So pick a reasonable allocation and a reasonable withdrawal approach to begin with. Then you need to assess your expenses, health, portfolio performance, inflation etc. periodically and mak...
by Dandy
Thu Aug 02, 2018 1:02 pm
Forum: Investing - Help with Personal Investments
Topic: Question about investing in bonds
Replies: 17
Views: 1442

Re: Question about investing in bonds

Dear Bogleheads, I'm following the recommended protocol: bonds percentage = my age, the rest is in stocks. 2/3 of my stocks are US, 1/3 are international. Here are my questions: 1. Bonds suck right now, investing in them is the same as losing money. Should I completely ignore this fact and focus on...
by Dandy
Wed Aug 01, 2018 5:03 pm
Forum: Investing - Theory, News & General
Topic: Matter/Scatter Part 5: International stocks
Replies: 12
Views: 1569

Re: Matter/Scatter Part 5: International stocks

Where U.S. was relatively unscathed from the various world wars and regional conflicts over the last century, many countries were not, which gave the U.S. in my personal opinion, a generational leap economically. How true. Having friendly neighbors ( I hope they are still friendly :happy ) and larg...
by Dandy
Wed Aug 01, 2018 4:36 pm
Forum: Investing - Theory, News & General
Topic: How Often to Adjust Target Asset Allocation
Replies: 10
Views: 786

Re: How Often to Adjust Target Asset Allocation

I always hated to make major adjustments. In the accumulation stage I would rebalance in my 401k mostly by changing my contributions but on occasion with exchanges. In retirement with a fixed heavy TIRA and an equity heavy Taxable I do the following: In taxable I all distributions are not reinvested...
by Dandy
Sat Jul 28, 2018 3:39 pm
Forum: Personal Finance (Not Investing)
Topic: An argument against self-insuring for long-term care
Replies: 214
Views: 10333

Re: An argument against self-insuring for long-term care

LetsgoBobby (and others who self-insure): What is your targeted range for self-insurance? Plus do you set it aside in a separate fund or is it just part of expected expenses? I am a believer in insurance in general but decided to self insure LTC for several reasons: 1. Insurance companies are getti...
by Dandy
Sat Jul 28, 2018 8:51 am
Forum: Investing - Help with Personal Investments
Topic: Retirees: how much cash?
Replies: 61
Views: 6260

Re: Retirees: how much cash?

Age 70. About 18% cash-like, another 18% or so in short term bond funds and about 21% in intermediate bond funds. I roughly follow Dr. Bernstein's suggestion i.e. have 20 years of current draw down in cash-like and short term bond funds. I don't overly fuss about how much of what type of cash or cas...
by Dandy
Tue Jul 17, 2018 12:11 pm
Forum: Personal Finance (Not Investing)
Topic: Duration of Sequence of Return risk for long retirements
Replies: 49
Views: 3552

Re: Duration of Sequence of Return risk for long retirements

keep in mind that the 2008-9 Great Recession was horrible but the recovery was dramatic and relatively quick. If that were not the case I think we would hear more sad tales. Also, some of us had pensions which are fast becoming a thing of the past. When you have to rely very much more on your portfo...
by Dandy
Tue Jul 17, 2018 8:18 am
Forum: Personal Finance (Not Investing)
Topic: Buy a vacation home while renting
Replies: 61
Views: 3770

Re: Buy a vacation home while renting

Some people seem to love having a vacation home, condo or even a time share. The latter has a lot of buyer's remorse. I was always a fan of renting on vacation rather than be tied to one place even if it seemed idea. The expense, up keep, feeling like you have to go there, when you get there chores ...
by Dandy
Mon Jul 16, 2018 5:50 pm
Forum: Personal Finance (Not Investing)
Topic: Duration of Sequence of Return risk for long retirements
Replies: 49
Views: 3552

Re: Duration of Sequence of Return risk for long retirements

Sequence of return risk for retirees has several elements. The downward loss, the time to recover, loss of human capital's ability to buy (e.g. contributions/company matches), less income (usually), withdrawals from a shrinking portfolio, and years to Medicare and Social Security. I was forced to re...
by Dandy
Mon Jul 16, 2018 5:13 pm
Forum: Investing - Help with Personal Investments
Topic: Advice adjusting Asset Allocation
Replies: 25
Views: 1423

Re: Advice adjusting Asset Allocation

It looks as if you will be in fine financial shape and withdrawing 3% or less per year. My question is why do you still want to go for aggressive growth? The years just prior and just after retirement are the most risky from a bad sequence of return situation. Remember you may be looking at market d...
by Dandy
Mon Jul 16, 2018 5:12 pm
Forum: Investing - Help with Personal Investments
Topic: Advice adjusting Asset Allocation
Replies: 25
Views: 1423

Re: Advice adjusting Asset Allocation

It looks as if you will be in fine financial shape and withdrawing 3% or less per year. My question is why do you still want to go for aggressive growth? The years just prior and just after retirement are the most risky from a bad sequence of return situation. Remember you may be looking at market d...
by Dandy
Mon Jul 16, 2018 7:02 am
Forum: Investing - Help with Personal Investments
Topic: Realizing 85% of 401k contribution going to bonds
Replies: 21
Views: 2660

Re: Realizing 85% of 401k contribution going to bonds

Much of the time I don't have to involve my taxable accounts when rebalancing, so no taxable events. For now, anyway. I'm 70 and have been investing since my mid 20's and I've never had to pay taxes to rebalance until last year because the growth of one fund in my taxable account was getting way ov...
by Dandy
Mon Jul 16, 2018 6:47 am
Forum: Personal Finance (Not Investing)
Topic: Anyone not have a Budget?
Replies: 115
Views: 7157

Re: Anyone not have a Budget?

Never had a budget but did the following: 1. When I had a mortgage I used to subtract an amount each week from my checking register and add it to a column in the back of the register. That made sure I had enough in that separate sub account to pay the mortgage. It also let me know the real amount I ...
by Dandy
Mon Jul 16, 2018 6:10 am
Forum: Investing - Help with Personal Investments
Topic: Realizing 85% of 401k contribution going to bonds
Replies: 21
Views: 2660

Re: Realizing 85% of 401k contribution going to bonds

Sometimes to maintain a desired allocation you have to do what you have to do. However, I am not a fan of only having equities in Roth or only equities in taxable etc. I think each type of account should have a bit of both fixed income and equities. Maybe for Roth a 80 or 90% equity vs 100% and mayb...
by Dandy
Sun Jul 15, 2018 7:21 pm
Forum: Investing - Theory, News & General
Topic: turnover rate impact on return
Replies: 13
Views: 892

Re: turnover rate impact on return

As i recall turnover expenses, which are mainly, commissions are not included in mutual fund expense ratios. Another advantage of most index funds that is not normally discussed.
by Dandy
Sun Jul 15, 2018 2:37 pm
Forum: Personal Finance (Not Investing)
Topic: FireCalc: How big a grain of salt?
Replies: 58
Views: 4693

Re: FireCalc: How big a grain of salt?

No knock on the software but like all of these calculators they are historically based and the future may or may not look anything like the different scenarios based upon the past. A good reality check about your situation but I would always have some reservations about the results - probably err on...
by Dandy
Sun Jul 15, 2018 9:59 am
Forum: Personal Finance (Not Investing)
Topic: Take 5% of Folio age 75 Onward?
Replies: 14
Views: 1773

Re: Take 5% of Folio age 75 Onward?

It doesn't seem like a significant risk. But, I don't think there is a set it and forget it approach. Have 5% as the default option and see how it goes.
by Dandy
Sun Jul 15, 2018 9:50 am
Forum: Personal Finance (Not Investing)
Topic: Would you trade experiences in your youth for early retirement
Replies: 81
Views: 5503

Re: Would you trade experiences in your youth for early retirement

I think life balance is important at every age. There were times when we had to be a bit more frugal e.g. when first bought a house, new baby etc. I found I "sacrificed" some material things like a better car, better clothes, minimal upgrading our house/furniture, etc. and did a lot of work myself i...
by Dandy
Sun Jul 15, 2018 9:05 am
Forum: Investing - Help with Personal Investments
Topic: Splitting Monies between multiple investment houses
Replies: 17
Views: 1425

Re: Splitting Monies between multiple investment houses

After being retired awhile you might find having too many places that hold your money to be more of an issue than it would be now. I would suggest having all of an individual's accounts that require RMDs to be housed in one firm. That will make RMDs a bit easier since most firms will calculate the R...
by Dandy
Sun Jul 15, 2018 8:56 am
Forum: Investing - Help with Personal Investments
Topic: Single Investment Fund
Replies: 13
Views: 1768

Re: Single Investment Fund

There have been good suggestions in the above posts. The main drawback for most balanced funds in a taxable account is that the fixed income portion is taxable, thus generating perhaps unwanted taxable income. If that is an issue in your situation you might consider Vanguard Tax Managed Balanced Fun...
by Dandy
Sat Jul 14, 2018 5:13 pm
Forum: Personal Finance (Not Investing)
Topic: Major purchases - now or later?
Replies: 13
Views: 1494

Re: Major purchases - now or later?

I like to spread out major outflows a bit. If it were me the priorities would seem to be refrigerator and new(er) car. I don't usually see a reason for spending 60k on a new car. You can usually find a great car for substantially less. But, people are fussy about their cars. The great thing about a ...
by Dandy
Fri Jul 13, 2018 1:13 pm
Forum: Investing - Help with Personal Investments
Topic: Self Employed 48years old and nothing saved for retirement
Replies: 41
Views: 5420

Re: Self Employed 48years old and nothing saved for retirement

I might consider not buying a house. Lots of expenses in owning a house many of which are not obvious especially if you have been a renter. Also, the ability to deduct taxes and mortgage interest may not be as doable. If you don't keep your house and landscaping up the house value will not keep up....
by Dandy
Fri Jul 13, 2018 7:40 am
Forum: Investing - Theory, News & General
Topic: Does tilting towards shorter-term bonds make sense?
Replies: 15
Views: 1828

Re: Does tilting towards shorter-term bonds make sense?

While I think a good intermediate bond fund will usually do the job fine almost all the time over time i like some diversity in my fixed income allocations, especially in retirement. Many often say that the purpose of their fixed income is for stability so and they take the risk on the equity side. ...
by Dandy
Fri Jul 13, 2018 7:08 am
Forum: Investing - Help with Personal Investments
Topic: Self Employed 48years old and nothing saved for retirement
Replies: 41
Views: 5420

Re: Self Employed 48years old and nothing saved for retirement

I might consider not buying a house. Lots of expenses in owning a house many of which are not obvious especially if you have been a renter. Also, the ability to deduct taxes and mortgage interest may not be as doable. If you don't keep your house and landscaping up the house value will not keep up. ...
by Dandy
Fri Jul 13, 2018 6:53 am
Forum: Investing - Help with Personal Investments
Topic: Like Lifestrategy Funds but???
Replies: 32
Views: 3413

Re: Like Lifestrategy Funds but???

Similar concerns about International bonds and also that I'm becoming a bit less put off by them. I'm 70 and down the road want to make my TIRA account simpler. I was looking at LS conservative fund but the higher the bond allocation the higher allocation to international bonds. Retirement Income fu...
by Dandy
Wed Jul 11, 2018 11:36 am
Forum: Investing - Theory, News & General
Topic: Bucket Portfolio article by Christine Benz
Replies: 85
Views: 6630

Re: Bucket Portfolio article by Christine Benz

Safety is just a mirage. If that means safety is not guaranteed I agree. If having a portion of your nest egg in "safer" assets can be a bit safer than not doing so. But, nasty, long market declines can destroy almost any plan. Too many variables in retirement: the market, inflation, taxes, illness...
by Dandy
Wed Jul 11, 2018 5:53 am
Forum: Investing - Theory, News & General
Topic: Bucket Portfolio article by Christine Benz
Replies: 85
Views: 6630

Re: Bucket Portfolio article by Christine Benz

The thread is about bucket portfolios, not multiple objectives. A bucket strategy is about multiple objectives. e.g. This one is for short term needs over the next few years, the next one is for ??..., the last one is for growth. Just like this money is for emergency fund, that one is for Junior's ...
by Dandy
Tue Jul 10, 2018 7:09 pm
Forum: Investing - Theory, News & General
Topic: Bucket Portfolio article by Christine Benz
Replies: 85
Views: 6630

Re: Bucket Portfolio article by Christine Benz

No matter what one thinks is a bucket or is not a bucket, one owns the totality of what one owns. Thinking about it differently doesn't change that fundamental truth. True. But there is sometimes value in segregating assets e.g. an emergency fund, college funding for kids, etc. In retirement, that ...
by Dandy
Tue Jul 10, 2018 12:47 pm
Forum: Investing - Theory, News & General
Topic: Bucket Portfolio article by Christine Benz
Replies: 85
Views: 6630

Re: Bucket Portfolio article by Christine Benz

I think trying to organize and maintain say a 3 bucket (or more )strategy is a task for the designer and especially for a non investment savvy spouse. I favor 2 "portfolios" (not buckets!). A "safe" portfolio (FDIC products and short term bonds) and a "risk" portfolio of intermediate bonds and equit...
by Dandy
Tue Jul 10, 2018 7:37 am
Forum: Investing - Help with Personal Investments
Topic: Target date funds....unsophisticated?
Replies: 64
Views: 4759

Re: Target date funds....unsophisticated?

The TD funds' design is fairly sophisticated but they are simple to use and the extra expense isn't that big a deal. Any choice of a balanced or all in one fund usually requires some compromise e.g. in the overall allocation or the funds included. e.g. I am not a big fan of International bonds but t...
by Dandy
Sun Jul 08, 2018 10:35 am
Forum: Investing - Theory, News & General
Topic: Why 3-funds and not 4-funds or even 2-funds?
Replies: 56
Views: 4607

Re: Why 3-funds and not 4-funds or even 2-funds?

I think all the 1,2,3, and 4 fund ideas have merit. The 3 fund idea has been around for awhile and can usually be duplicated or close to it for many investment plan options. Also, it has been the "rage" for quite a while and it is often hard to change thinking. For me, I'm not as sure the internatio...