Search found 4747 matches

by Dandy
Fri Nov 17, 2017 6:32 pm
Forum: Personal Finance (Not Investing)
Topic: Paid off my house. Now how to handle insurance and tax payments?
Replies: 17
Views: 1337

Re: Paid off my house. Now how to handle insurance and tax payments?

I have done what to OP suggested for more than 40 years and it works like a charm. I now just automatically have $X moved from checking to savings each week. When the tax bill is do just move money from savings to checking. My credit union makes the move between accounts instantly.
by Dandy
Fri Nov 17, 2017 6:02 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation and SS Income
Replies: 2
Views: 259

Re: Asset Allocation and SS Income

Keep income as income and bonds, stocks and savings accounts as part of your allocation. Having a pension and SS allows you to take more risk -- if you want. But, they aren't bonds. Keep things simple.
by Dandy
Fri Nov 17, 2017 7:20 am
Forum: Investing - Help with Personal Investments
Topic: Moving to fund-of-funds - any regrets/downsides?
Replies: 9
Views: 1028

Re: Moving to fund-of-funds - any regrets/downsides?

Sounds like you have a well reasoned plan. I'm not there yet but feel the lure to something like it. As you know it would be rare for a fund of funds or balanced fund to fit exactly what you want. As long as the compromise is reasonable so likely is the investment.
by Dandy
Thu Nov 16, 2017 10:28 am
Forum: Investing - Theory, News & General
Topic: Is treating all accounts as one bucket really simpler
Replies: 11
Views: 1523

Re: Is treating all accounts as one bucket really simpler

When you have a lot of different accounts e.g. 2 TIRAs, 2 Roths, 2 401ks and a Joint Taxable account it can get very complex no matter how you structure your investments especially when their are ongoing contributions and company matches to some. I tried to have at least an equity and fixed income o...
by Dandy
Thu Nov 16, 2017 10:12 am
Forum: Investing - Theory, News & General
Topic: Age in bonds, tax-sheltered options
Replies: 8
Views: 889

Re: Age in bonds, tax-sheltered options

My TIRA has a variety of fixed income products: 1. Brokerage CDs * 2. Short Term Bond Index Fund * 3. Short Term Investment Grade Fund * 4. Inflation Protected Securities Fund 5. Intermediate Treasury Fund ** 6. The intermediate bonds held by Balanced Index and Wellesley Income Funds * due to my com...
by Dandy
Tue Nov 14, 2017 8:43 am
Forum: Investing - Theory, News & General
Topic: Buffett 90/10 Portfolio vs Target Retirement
Replies: 29
Views: 3140

Re: Buffett 90/10 Portfolio vs Target Retirement

First of all I hope your 90/10 allocation has nothing to do with Bogle or Buffet. Buffet set up this allocation for his spouse who should never need financial concerns even if the equity portion dropped 70%. You pick the overall allocation based on your assets, expenses and risk tolerance. Second - ...
by Dandy
Mon Nov 13, 2017 11:59 am
Forum: Investing - Theory, News & General
Topic: GE and the myth of "safe blue-chip stocks"
Replies: 73
Views: 6998

Re: GE and the myth of "safe blue-chip stocks"

At one time Blue Chips usually paid a higher dividend and could last for decades. Now current Blue Chips are likely to turn into Cow Chips in a much shorter time. The pace of and magnitude of change is so great that the concept of Blue Chip is basically gone.
by Dandy
Mon Nov 13, 2017 8:42 am
Forum: Investing - Help with Personal Investments
Topic: Bucket #2: Which Bond Funds Do You Recommend?
Replies: 7
Views: 1106

Re: Bucket #2: Which Bond Funds Do You Recommend?

I am not a fan of the 3 bucket idea mainly because of the complications of the movement and timing of the movements between buckets. It is mental accounting and mostly that is fine as long as you understand that. I use 2 portfolios: a "safe" portfolio (mostly FDIC products and short term bond funds)...
by Dandy
Sat Nov 11, 2017 3:50 pm
Forum: Investing - Theory, News & General
Topic: Retirees: I got this!!
Replies: 75
Views: 8434

Re: Retirees: I got this!!

A nice long bull market soon after retirement has certainly increased confidence that finances will last. But that can be misleading. The real factors for me are: 1. I will take SS at age 70 next year which will raise my income floor to about 85% or so of my current life style, 2, I am 70 vs 60 when...
by Dandy
Sat Nov 11, 2017 9:52 am
Forum: Investing - Help with Personal Investments
Topic: Planning for a surviving spouse's income
Replies: 16
Views: 1631

Re: Planning for a surviving spouse's income

I am struggling a bit with the same issue. I also realized that the survivor will also probably pay higher taxes with filing single over 65 vs married filing jointly with both over 65, lower medical expense deductions? I am following Dr. Bernstein's idea of having enough "safe" products to fund curr...
by Dandy
Sat Nov 11, 2017 9:28 am
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation
Replies: 10
Views: 963

Re: Asset Allocation

While there are some important people who seen to advocate counting SS as a bond I think it is a big mistake. SS is a stream of income just like a pension, annuity and you could say even your salary. Having any income stream is a big deal especially in retirement. It causes you to have less reliance...
by Dandy
Fri Nov 10, 2017 8:26 am
Forum: Personal Finance (Not Investing)
Topic: Did you tell anyone you paid off your mortgage?
Replies: 328
Views: 34354

Re: Did you tell anyone you paid off your mortgage?

I consider most financial matters private. I don't ask other people about their finances. I don't know what positive outcomes would occur and can think of several negative ones e.g. envy, people think I am bragging, people feeling bad because they aren't in as good shape, etc. I also never discussed...
by Dandy
Wed Nov 08, 2017 7:32 am
Forum: Investing - Help with Personal Investments
Topic: Vangaurd Target Date retirement allocation too aggressive?
Replies: 20
Views: 1624

Re: Vangaurd Target Date retirement allocation too aggressive?

How aggressive you invest should have mostly been the result of your risk tolerance. Risk tolerance is often very hard to assess and often get clarified after a significant market loss. Some of that relates to the dollar amount lost e.g. it hurts more when the dollar amount is larger (and also the o...
by Dandy
Wed Nov 08, 2017 7:21 am
Forum: Investing - Help with Personal Investments
Topic: Annuity for winning the game
Replies: 39
Views: 3399

Re: Annuity for winning the game

I think having annuity income makes sense. I know having 2 pensions and SS as an income floor takes a lot of financial concerns off the table for me. You might want to look at a QLAC annuity as part of the decision. I'm not familiar with all the rules but you basically give a smaller amount to the i...
by Dandy
Mon Nov 06, 2017 8:18 am
Forum: Investing - Theory, News & General
Topic: Did Vanguard change from 20% to 30% stock in TD retirement income fund?
Replies: 19
Views: 2174

Re: Did Vanguard change from 20% to 30% stock in TD retirement income fund?

If you acknowledge replacing Prime with a more "risky" investment due to the world changing, you have to view increasing equity percentages the same way. Not true for me. Prime money market was radically changed by the new laws and was yielding .01% it had been radically changed. VG had no other fu...
by Dandy
Sun Nov 05, 2017 7:19 pm
Forum: Investing - Theory, News & General
Topic: Did Vanguard change from 20% to 30% stock in TD retirement income fund?
Replies: 19
Views: 2174

Re: Did Vanguard change from 20% to 30% stock in TD retirement income fund?

But you're kind of saying that when you think a change is "good" it's okay, but when you think it's not VG should come up with a new fund. Change is always happening in VG funds, including index funds. Look at the REIT index (for us sub-institutional investors) this year, or emerging markets, when ...
by Dandy
Sun Nov 05, 2017 10:35 am
Forum: Investing - Help with Personal Investments
Topic: I came up with a Bond plan.....Good or Bad...you decide
Replies: 19
Views: 1732

Re: I came up with a Bond plan.....Good or Bad...you decide

Another very important thing to understand is that bonds are primarily for safety--not return. Use stocks for higher return. Higher return nearly always reflects higher risk. There is only one "free lunch" in bonds: Diversification . . Total bond is an excellent fund. But if you are focusing on saf...
by Dandy
Sun Nov 05, 2017 9:12 am
Forum: Investing - Help with Personal Investments
Topic: How many funds do I need?
Replies: 21
Views: 1529

Re: How many funds do I need?

1. Total US stock Market 2. Total International Stock Market 3. Total US bond Market 4. a TIPS Fund? 5. a Muni Fund? 6. a Money Market Fund 7. Other fixed income not included in funds - e.g. CDs, Savings Accounts, I Bonds, EE Bonds 8. Stable Value Fund if offered by your employer plan 9. Internation...
by Dandy
Sun Nov 05, 2017 8:46 am
Forum: Investing - Help with Personal Investments
Topic: Best savings account (or fund) for my emergency account?
Replies: 11
Views: 769

Re: Best savings account (or fund) for my emergency account?

The Discover deal seems to be attractive of course with any bank or credit union the details are important. I have used Discover bank for years and never had an issue. You can look on depositaccounts.com for almost everything you need to know about banks, bank deals, ratings etc.
by Dandy
Sun Nov 05, 2017 7:38 am
Forum: Investing - Theory, News & General
Topic: Did Vanguard change from 20% to 30% stock in TD retirement income fund?
Replies: 19
Views: 2174

Re: Did Vanguard change from 20% to 30% stock in TD retirement income fund?

I wonder how many other investors who bought TD of Life Strategy Funds know what they have now? They may have thought they bought a set allocation that met their needs so they could essentially set it and forget it. What they have is a form of "active" management by Vanguard "experts". I wonder if m...
by Dandy
Sat Nov 04, 2017 7:05 pm
Forum: Investing - Help with Personal Investments
Topic: I came up with a Bond plan.....Good or Bad...you decide
Replies: 19
Views: 1732

Re: I came up with a Bond plan.....Good or Bad...you decide

First I always suggest think in terms of fixed income vs only typical bonds/bond funds. There are CDs, Savings, EE bonds, I bonds, Stable Value funds, TIPS. I own both short term bond funds you mentioned almost equally. For intermediate bond funds either one is good. If you really want to limit nomi...
by Dandy
Sat Nov 04, 2017 3:23 pm
Forum: Investing - Help with Personal Investments
Topic: Help me get back into the market
Replies: 31
Views: 5013

Re: Help me get back into the market

I like a combination of some lump sum -- say 25% and then automatic monthly DCA investing for a year or so for the rest. Also, when the market drops a decent amount double up the DCA that month. 1. gets you off the sidelines 2. automates most or all of your future investments 3. when you double up i...
by Dandy
Fri Nov 03, 2017 8:13 pm
Forum: Investing - Help with Personal Investments
Topic: How has your AA philosophy changed over the years?
Replies: 45
Views: 3553

Re: How has your AA philosophy changed over the years?

Twice In 2008 I was forced to retire and then saw my moderate portfolio allocation suffer the largest losses in my career. I had not taken into account retiring that early. That taught me that my moderate allocation which had served me well was a bit riskier near retirement than I had thought. I cha...
by Dandy
Fri Nov 03, 2017 5:12 pm
Forum: Investing - Help with Personal Investments
Topic: TIPs Investment
Replies: 14
Views: 983

Re: TIPs Investment

Trying to make sure you are securely funding retirement for you and spouse is worse than an algebra problem trying to solve for 3 unknowns. :oops: Your personal expense growth may not match very well with inflation captured by TIPS, you don't know how long you or your spouse will live, how much assi...
by Dandy
Thu Nov 02, 2017 5:55 pm
Forum: Personal Finance (Not Investing)
Topic: Does Retirement Make You Lazier?
Replies: 87
Views: 7507

Re: Does Retirement Make You Lazier?

It can. I find myself rising later, lingering over a coffee while I peruse the news. Chores seem more chore-like than they used to. My kids and grandkids tend to need a helping hand on occasion and unfortunately doctor visits tend to fill up the calendar too much. It takes awhile but you can easily ...
by Dandy
Thu Nov 02, 2017 5:47 pm
Forum: Investing - Theory, News & General
Topic: Regret of selling winning stocks early
Replies: 64
Views: 8486

Re: Regret of selling winning stocks early

I worked for a stock company who had their shares rise to 120 do a 2 for 1 split rose to about 120 again and then in the 2008 crisis drop to 8 and only a rescue from a Japanese bank helped it survive. Lots on longer term employees saw their nice retirement plan go out the window as they followed the...
by Dandy
Thu Nov 02, 2017 5:36 pm
Forum: Investing - Help with Personal Investments
Topic: Turning Off Online Access AKA "Don't Peek"
Replies: 9
Views: 702

Re: Turning Off Online Access AKA "Don't Peek"

like Mr. Bogle recommends and remove the ability to peak (or to be hacked)? Thoughts While a noble intent one of the few really bad ideas from Saint Jack. The nobility is preventing you from hasty/panic moves out of equities and sitting on the sidelines while equities rebound. The ability to peek i...
by Dandy
Thu Nov 02, 2017 8:00 am
Forum: Personal Finance (Not Investing)
Topic: New Car: Ever make sense to lease?
Replies: 84
Views: 5371

Re: New Car: Ever make sense to lease?

I have never leased a car and don't expect to. I think from a financial standpoint it would be rare for it to be a good thing. It is hard enough to buy a car for a good price when you have to negotiate the purchase price and maybe the trade in price and any finance terms - even when you do good rese...
by Dandy
Tue Oct 31, 2017 8:36 am
Forum: Investing - Help with Personal Investments
Topic: Best to harvest Dividends to meet living expenses
Replies: 23
Views: 2112

Re: Best to harvest Dividends to meet living expenses

If you need dividends to support retirement lifestyle - why not? I, like many others put the bulk of my equities in my taxable account. I really don't want taxable equities to increase, rather do any rebalancing in my TIRA. There will be pressure for equites to rise as my RMDs deplete fixed income h...
by Dandy
Mon Oct 30, 2017 2:34 pm
Forum: Investing - Help with Personal Investments
Topic: Hit 2 comma milestone in portfolio thinking of increasing bonds drastically
Replies: 23
Views: 2577

Re: Hit 2 comma milestone in portfolio thinking of increasing bonds drastically

Additionally, I don’t want to change anything in response to high valuations since that doesn’t seem to work except at the extremes . Have you defined "extreme"? equities being at an historic high might qualify?? There are conflicting sage advice "stay the course" and "buy when there is blood in th...
by Dandy
Sun Oct 29, 2017 3:53 pm
Forum: Investing - Theory, News & General
Topic: What strategies do you use to manage risk in your portfolio?
Replies: 21
Views: 1237

Re: What strategies do you use to manage risk in your portfolio?

1. Waiting until age 70 to collect SS (next year). Increase in income floor means I can take less risk in my investments 2. Have moderate allocation to equities now 43% high was 55%. 3. Have a variety of "safe" fixed income - CD ladder, short term bond funds, FDIC Savings/Money Mkt. as well as inter...
by Dandy
Sun Oct 29, 2017 3:26 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Managed Balanced Fund vs Total Stk Mkt plus Tax Exempt Bond Index
Replies: 28
Views: 2172

Re: Tax Managed Balanced Fund vs Total Stk Mkt plus Tax Exempt Bond Index

There is a trade off between simplicity and a bit more complexity to rebalance but the possibility to tax loss harvest. Separate investments seem to win out unless you are ultra busy, gun shy about rebalancing or getting on in age and value simplicity very much. For me in taxable I like individual f...
by Dandy
Sun Oct 29, 2017 3:08 pm
Forum: Investing - Help with Personal Investments
Topic: Hit 2 comma milestone in portfolio thinking of increasing bonds drastically
Replies: 23
Views: 2577

Re: Hit 2 comma milestone in portfolio thinking of increasing bonds drastically

At age 40 you seem to be in great shape. I agree that reducing equity risk would be prudent. A 50% equity allocation coupled with $100k contributions per year should enable you to still have excellent growth of your investments with less exposure. You also seem to have your children's education fund...
by Dandy
Sun Oct 29, 2017 7:56 am
Forum: Personal Finance (Not Investing)
Topic: Need some advice on our unique situation, thoughts appreciated!
Replies: 11
Views: 1199

Re: Need some advice on our unique situation, thoughts appreciated!

I'm not sure 85K will be sufficient to cover all your expenses in a HCOL area like NY/NJ. But that plan can change and you do have experience managing life on your income. Just a caution that you may need to be more flexible than planned. Best of luck.
by Dandy
Sun Oct 29, 2017 7:42 am
Forum: Investing - Theory, News & General
Topic: How are various investments impacted by inflation?
Replies: 21
Views: 1545

Re: How are various investments impacted by inflation?

Just a nit. Cash i.e. Savings listed as .01 (which is what some big brick banks actually pay) is a bit understated. Many online banks pay 1.2% or more which is close to the current Short Term Treasury yield of 1.31%. Not an inflation beater by any means but not as drastic a lag as .01%. Also, in a r...
by Dandy
Sat Oct 28, 2017 7:28 pm
Forum: Personal Finance (Not Investing)
Topic: What was the main reason you retired?
Replies: 210
Views: 14900

Re: What was the main reason you retired?

6. 2008 resulted in an offer I couldn't refuse. Nice severance. No jobs available. I had already hit my number but was trying to pad it. All and all a good thing. Very lucky.
by Dandy
Fri Oct 27, 2017 8:37 am
Forum: Investing - Theory, News & General
Topic: Emotional impact of spending down assets?
Replies: 100
Views: 9964

Re: Emotional impact of spending down assets?

Oh I can relate to that feeling even though I'm not at that point yet. It is emotional but logical. You spend a life time of saving and living somewhat frugally and have had decades of seeing your nest egg grow. Then at a certain age you find your asset level very depleted and see that there aren't ...
by Dandy
Thu Oct 26, 2017 7:56 am
Forum: Investing - Help with Personal Investments
Topic: Definiing "liquidity"
Replies: 13
Views: 911

Re: Definiing "liquidity"

I think you need to think of what your needs are. For me while stock mutual funds are easily turned into cash their value can vary widely depending on the market and withdrawals often have taxable consequences. So, if I am saving for a house I may want to have liquid assets-- stock funds are probabl...
by Dandy
Thu Oct 26, 2017 7:36 am
Forum: Investing - Help with Personal Investments
Topic: Should you rebalance when you’re in your seventies?
Replies: 25
Views: 2481

Re: Should you rebalance when you’re in your seventies?

I see no need for you to follow strict rebalance "rules". I would lean toward managing risk by making sure the equity portion didn't get too high but would defer the normal selling bonds to buy equities when they plunge. I would reserve the idea of buying some equities when they have dropped a lot -...
by Dandy
Tue Oct 24, 2017 3:25 pm
Forum: Investing - Help with Personal Investments
Topic: What does a defensive position look like?
Replies: 8
Views: 919

Re: What does a defensive position look like?

A defensive position looks like having a lower allocation to equities. Your glide path doesn't have to equal VG's (which I consider pretty aggressive). A 50% loss when you are 30 with 200k invested feels bad but you feel that you will be buying low and have many decades of contributions, company mat...
by Dandy
Mon Oct 23, 2017 9:01 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds at Age 50?
Replies: 17
Views: 1642

Re: Bonds at Age 50?

I think anything between 50 and 60% equities would be reasonable for most people. I think age in bonds is a decent starting point Adjusting that for a bit based on risk tolerance and how close you feel you are to your "number". Interesting that early replies tend to be more aggressive than age in bo...
by Dandy
Sun Oct 22, 2017 8:25 am
Forum: Investing - Theory, News & General
Topic: Just starting checking out Bonds. Head hurts a bit.
Replies: 12
Views: 1386

Re: Just starting checking out Bonds. Head hurts a bit.

Think fixed income vs always thinking bonds or bond funds. There are many fixed income choices that aren't the usual bond/bond fund. e.g. CDs, Savings accounts, EE and I bonds, Stable Value Fund, Money Market Deposit Accounts etc. These options are not often mentioned by sales/investment/advisor/ana...
by Dandy
Fri Oct 20, 2017 11:19 am
Forum: Investing - Help with Personal Investments
Topic: Looming Retirement & Market Jitters
Replies: 48
Views: 4337

Re: Looming Retirement & Market Jitters

You are right to be somewhat concerned since the most risky years are the few before and after retirement. One thing I did was follow Dr. Bernstein's idea of having 20-25 years worth of drawdown needs (he calls it residual expenses) in "safe" products. e.g. Savings accounts, CDs, short term bond fun...
by Dandy
Tue Oct 17, 2017 9:27 pm
Forum: Investing - Theory, News & General
Topic: Alternatives to selling TSM from a taxable account
Replies: 5
Views: 693

Re: Alternatives to selling TSM from a taxable account

As was stated Gifts to charity and having all distributions not reinvested seem to be the best. The unfortunate consequence of having all or most of your equities in taxable and the reverse in tax advantage leaves you with equity allocation creep. Your tax advantaged e.g. TIRA RMDs tend to lower you...
by Dandy
Tue Oct 17, 2017 10:44 am
Forum: Investing - Help with Personal Investments
Topic: seeking advice on asset allocation, or is Vanguard crazy
Replies: 26
Views: 2668

Re: seeking advice on asset allocation, or is Vanguard crazy

Vanguard seems to be on the aggressive side for my taste. Awhile back they amped up their Target Date and Life Strategy Fund's equity allocation. Age in bonds is not a bad starting point. Seems like your risk tolerance is reasonably high I see no compelling need to raise it beyond your comfort level...
by Dandy
Mon Oct 16, 2017 5:07 pm
Forum: Investing - Theory, News & General
Topic: Understanding What Makes Vanguard So Successful
Replies: 12
Views: 1954

Re: Understanding What Makes Vanguard So Successful

How Vanguard manages to handle the amazing increase in assets and customers is the current challenge not lowering cost another basis point of two. Lots of comments about poor or so/so service recently. Their focus should be on making sure service is very good. They don't want to hear media horror st...
by Dandy
Mon Oct 16, 2017 6:34 am
Forum: Investing - Help with Personal Investments
Topic: Thinking we are close to winning the game
Replies: 35
Views: 5852

Re: Thinking we are close to winning the game

I think you are in good shape - congrats. Here are some things to consider before pulling the plug and retiring early. 1. As you have noted health insurance is a big question once you leave employment and have years to Medicare. Don't just guess at whether you both can get affordable health insuranc...
by Dandy
Mon Oct 16, 2017 6:13 am
Forum: Investing - Help with Personal Investments
Topic: Why not CDs instead of Short Term Bonds or TIPS
Replies: 24
Views: 3188

Re: Why not CDs instead of Short Term Bonds or TIPS

CDs are a good alternative for the "safe" portfolio. While the TIPS fund is good to have I don't include it in my Dr. Bernstein's concept of having 20* years in safe products. You are correct that it is somewhat volatile. In my "safe" portfolio I have short term bond funds and no loss of principal p...
by Dandy
Sun Oct 15, 2017 8:51 am
Forum: Personal Finance (Not Investing)
Topic: Medicare Advantage vs. Supplemental
Replies: 58
Views: 3890

Re: Medicare Advantage vs. Supplemental

I have Medicare and my company plan as secondary. I chose that vs having Medi gap since I wanted to preserve the ability to go to the best doctor available vs the best that takes Medicare. This focus was made clear when 20 years ago my wife had a life threatening illness and by chance I could have h...
by Dandy
Sun Oct 15, 2017 8:15 am
Forum: Personal Finance (Not Investing)
Topic: Help with retirement decision
Replies: 11
Views: 1502

Re: Help with retirement decision

A guaranteed pension from a firm in good shape with a pension plan that is in good shape is a rare blessing. It seems as if taking the full amount leaves you a few hundred dollars short Can you make up the shortage until either of you collect Social Security? If so, take the pension. Most retirees q...