Search found 5177 matches

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: 29
Views: 1133

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: 7
Views: 283

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: 7
Views: 283

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: 18
Views: 1610

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: 66
Views: 3313

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: 18
Views: 1610

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: 737

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: 55
Views: 3734

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: 13
Views: 1416

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: 4989

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: 1351

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: 1645

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: 1417

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: 40
Views: 4644

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: 1653

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: 40
Views: 4644

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: 3204

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: 6209

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: 6209

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: 6209

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: 6209

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: 4413

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: 4335

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...
by Dandy
Sun Jul 08, 2018 10:14 am
Forum: Investing - Help with Personal Investments
Topic: BND,VTEB,Online Savings [Vanguard Total Bond, Tax-Exempt Muni]
Replies: 3
Views: 274

Re: BND,VTEB,Online Savings [Vanguard Total Bond, Tax-Exempt Muni]

I am willing to take a little risk to double the interest I’m getting right now.


There are no "little" risk investments that will pay 3.4%. Prime is paying a bit more that 2% now and that has very little risk.
by Dandy
Sun Jul 08, 2018 9:13 am
Forum: Investing - Theory, News & General
Topic: Capping Emergency Fund
Replies: 53
Views: 4683

Re: Capping Emergency Fund

Let's be honest in a real emergency your whole assets are liable to be in play. Cash and cash-like products are earning close to inflation, if CDs are included maybe a bit more. Intermediate bonds are slightly negative this year so far with rising rates in the near term likely - but they aren't on t...
by Dandy
Thu Jul 05, 2018 8:15 am
Forum: Investing - Theory, News & General
Topic: SS taken at 62 vs. 70, but measured from 70+
Replies: 189
Views: 10957

Re: SS taken at 62 vs. 70, but measured from 70+

For me the decision was simple (maybe simplistic). 1. I could afford to fund the wait to age 70 as the higher wage earner. 2. My pension will be reduced by half upon my death so my wife will "need" the benefit of higher SS income. 3. Both of us are relatively healthy and our parents lived until thei...
by Dandy
Wed Jul 04, 2018 10:00 pm
Forum: Investing - Theory, News & General
Topic: Jack Bogle is not a "buy&hold at any price goose", he looks at valuations, he sold his stocks in year 2000
Replies: 48
Views: 6550

Re: Jack Bogle is not a "buy&hold at any price goose", he looks at valuations, he sold his stocks in year 2000

To be fair Jack is not a market timer in any real sense. He made a significant reduction in equities due to "extreme" valuations and said that would be rare. But the OP is right that there is a consistent message on this board that any attempt at looking to take valuation into account is just plain ...
by Dandy
Wed Jul 04, 2018 11:14 am
Forum: Investing - Help with Personal Investments
Topic: Few Questions About Early Retirement
Replies: 13
Views: 1949

Re: Few Questions About Early Retirement

I wouldn't get too excited about very early retirement now at your age. Keep focused on saving/investing/stay out of unnecessary debt etc. Projections are based on the past, useful but we don't live there anymore. You have done a nice job of asset accumulation and should be in very good shape for ea...
by Dandy
Wed Jul 04, 2018 11:04 am
Forum: Investing - Help with Personal Investments
Topic: Second Opinion(s) on Financial Situation Married Couple 55 years old.
Replies: 39
Views: 4103

Re: Second Opinion(s) on Financial Situation Married Couple 55 years old.

Maybe I missed it but didn't see anything about health insurance after retirement but before Medicare. Can be very expensive If you have dental insurance make sure to get anything expensive done before retirement. Hard to get good coverage once you leave an employee (wife/s?) group coverage. You mig...
by Dandy
Wed Jul 04, 2018 7:55 am
Forum: Investing - Theory, News & General
Topic: Advocating to not index
Replies: 28
Views: 3365

Re: Advocating to not index

Passive investing by itself doesn't make the market more efficient and probably makes it less efficient since investing and even holding passive investments are not actively selecting specific stocks but all that are in the fund. There are some actions that indexes/index funds take that do contribut...
by Dandy
Wed Jul 04, 2018 6:57 am
Forum: Investing - Theory, News & General
Topic: Lump Sum Investing Put Simply
Replies: 16
Views: 1070

Re: Lumo Sum Investing

Apparently, studies have shown lump sum investing works out better about 2/3 of the time vs DCA. That would make sense in general since the equity markets tend to rise over the long term. So, the point of initial investment should be a relative low point compared to future investments. I have no dat...
by Dandy
Tue Jul 03, 2018 8:44 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation once you reach your target
Replies: 42
Views: 2992

Re: Asset Allocation once you reach your target

Put X years worth of drawdown in safer fixed income e.g. short term bond funds, FDIC products, Treasury Bills, etc. For me at age 70 X is to age 90 or currently 20 years. The rest, the "risk" portfolio, invest anyway you want -- for me that is 67/33. Overall 43/57.
by Dandy
Tue Jul 03, 2018 11:49 am
Forum: Investing - Help with Personal Investments
Topic: Taxes for those drawing income
Replies: 9
Views: 882

Re: Taxes for those drawing income

Somewhat lower tax bracket in early retirement and did some Roth conversions. Pension, SS at age 70 and RMD keep me in a high tax bracket. Didn't have Roth 401k option except for the last few working years. I don't like the taxes but I sure liked the tax savings for the TIRA when working. I'm in goo...
by Dandy
Mon Jul 02, 2018 4:28 pm
Forum: Investing - Theory, News & General
Topic: You Can Market Time At Valuation Extremes
Replies: 64
Views: 7337

Re: You Can Market Time At Valuation Extremes

Investor with a need or want for asset preservation should ALREADY have changed their Asset Allocation, not waiting until valuations "get high". There is certainly some truth in that e.g. a good allocation and a rebalancing plan usually does the trick. Risk tolerance and the translation of that int...
by Dandy
Sun Jul 01, 2018 5:28 pm
Forum: Investing - Theory, News & General
Topic: Are Hedge funds basically scams?
Replies: 36
Views: 3036

Re: Are Hedge funds basically scams?

2% fee and a 20% performance isn't a scam but a likely rip off. The 20% performance would seem to go for broke type investing, get a 20% payday for a few years and then not care too much if the fund tanks. If there is an off year or two the 2% is still nice. Don't have the facts but it seems they ma...
by Dandy
Sun Jul 01, 2018 5:12 pm
Forum: Investing - Theory, News & General
Topic: You Can Market Time At Valuation Extremes
Replies: 64
Views: 7337

Re: You Can Market Time At Valuation Extremes

Dandy was quoting me. I wasn't dismissing the topic ... Didn't mean to let my post make you look bad and unfairly characterize your post. I was probably reacting to scores of other posts that dismiss any concern about high valuations with a phrase like stay the course, that market timing etc. I fee...
by Dandy
Sun Jul 01, 2018 7:31 am
Forum: Investing - Help with Personal Investments
Topic: What’s your plan for a market downturn?
Replies: 114
Views: 9385

Re: What’s your plan for a market downturn?

I'm 70 and in good financial shape. I have a certain level of "safe" assets that I will maintain to fund my retirement lifestyle. I'm sure I would do some buying to keep my equity allocation at 40%. If the market continued downward i would opt to keep my "safe" assets and not continue to rebalance. ...
by Dandy
Sat Jun 30, 2018 4:22 am
Forum: Investing - Theory, News & General
Topic: Yes, It’ll Happen - Jonathan Clements
Replies: 33
Views: 7033

Re: Yes, It’ll Happen - Jonathan Clements

It is amazing that more people don't get it especially now with pensions being an endangered species. The power of compounding if you start early is often the key. I think I remember an analysis of someone 20 invested a modest amount say 2k per year from 20 to 30 and then stopped and his friend put ...
by Dandy
Fri Jun 29, 2018 6:22 pm
Forum: Personal Finance (Not Investing)
Topic: Health Insurance
Replies: 20
Views: 1629

Re: Health Insurance

The rules aren't going to change overnight, Overnight no - but the longer the time frame the more likely there will be changes- and to the extent that plan rules can or might change, how is one to determine that one plan is "safer" than another? Employer sponsored plans can change but being in the ...
by Dandy
Fri Jun 29, 2018 5:03 pm
Forum: Personal Finance (Not Investing)
Topic: Health Insurance
Replies: 20
Views: 1629

Re: Health Insurance

I don't know the rules and who decides is it a federal or state law? or does her employer's insurance company decide? Suppose it is her employer insurance company and they agree. But, before age 26 the employer changes insurance companies and the new company doesn't take her on because she has some ...
by Dandy
Fri Jun 29, 2018 4:49 pm
Forum: Personal Finance (Not Investing)
Topic: [Ally online savings now at 1.75%]
Replies: 210
Views: 32116

Re: ALLY BANK savings account RATE increase 1.75%

While not FDIC guaranteed VG Fed Money Market is paying north of 1.8% and Prime north of 2%. It wasn't long ago that these rates were near zero.
by Dandy
Fri Jun 29, 2018 4:32 pm
Forum: Investing - Help with Personal Investments
Topic: Using the Total Bond Fund in a rising rate environment
Replies: 72
Views: 8554

Re: Using the Total Bond Fund in a rising rate environment

Strange advice especially from a plan administrator. No absolute guarantees on rates or that duration of a bond fund would not change. But, not too far off - Fed has signaled for quite some time modest rate increases and bond funds are limited as to the making significant changes to average maturity...
by Dandy
Fri Jun 29, 2018 8:53 am
Forum: Investing - Theory, News & General
Topic: Keep calm and Boglehead on!
Replies: 60
Views: 5650

Re: Keep calm and Boglehead on!

I'm reasonably ok as far as being calm about our investments. But it is hard for many investors to know if their allocation really matches their risk tolerance or not. It is often said if you are too worried about your investments you should consider adjusting your allocation. Yet, a lot of advice i...
by Dandy
Fri Jun 29, 2018 8:18 am
Forum: Investing - Help with Personal Investments
Topic: good non- vanguard bond funds/etfs?
Replies: 6
Views: 440

Re: good non- vanguard bond funds/etfs?

while I'm sure that there are very good alternatives out there low cost funds should really be an advantage for VG in bond funds since the yield/upside is usually so limited. I always encourage people to think of fixed income vs only bond funds/etfs for at least some of their fixed income assets. To...
by Dandy
Thu Jun 28, 2018 10:42 pm
Forum: Investing - Help with Personal Investments
Topic: should I Help family member with investments?
Replies: 13
Views: 1398

Re: should I Help family member with investments?

It is very risky to give investment advice especially to relatives. Discussions, education, but don't own it. In the few cases where I helped people I was careful to provide information and show pros can cons and answered questions but didn't make specific Investment recommendations. I think, for mo...
by Dandy
Thu Jun 28, 2018 10:07 am
Forum: Investing - Theory, News & General
Topic: When does purchasing equities lose its marginal utility?
Replies: 48
Views: 2490

Re: When does purchasing equities lose its marginal utility?

• Longevity (e.g.: live longer than average and far beyond expected age) -- so annuitizing some money • Inflation (e.g. reduced buying power) - so investing it TIPS • Stock Market Equity Values (e.g. a drop in value without recovery for 20 years like Japan experienced) -- so limiting equity expsour...
by Dandy
Thu Jun 28, 2018 8:54 am
Forum: Investing - Theory, News & General
Topic: When does purchasing equities lose its marginal utility?
Replies: 48
Views: 2490

Re: When does purchasing equities lose its marginal utility?

If you are confident that you have sufficient assets to meet your needs for the rest of your life, and if you have additional assets beyond what you think you need as a margin for error, wwhy would SPIAs be in order? Having lifetime income helps avoid the risks of living too long and reduces the ne...
by Dandy
Thu Jun 28, 2018 7:34 am
Forum: Investing - Theory, News & General
Topic: When does purchasing equities lose its marginal utility?
Replies: 48
Views: 2490

Re: When does purchasing equities lose its marginal utility?

the age at which you become confident that you have enough (hopefully with a decent margin for error) . At that age/time you should probably be in an asset preservation mode vs growth. Annuities might also be in order, additional equities aren't needed.
by Dandy
Thu Jun 28, 2018 7:26 am
Forum: Investing - Theory, News & General
Topic: Are we just way over complicating this?
Replies: 113
Views: 7046

Re: Are we just way over complicating this?

You can make things complicated or simple - too complicated or simplistic. Some of the decisions that affect this are knowledge, time, patience and interest. Anytime you choose a balanced or all in one fund you usually have a trade off between simplicity and desired content/allocation. For the Balan...
by Dandy
Wed Jun 27, 2018 8:15 pm
Forum: Investing - Help with Personal Investments
Topic: Do you/How do you stress-test your plan?
Replies: 29
Views: 1454

Re: Do you/How do you stress-test your plan?

have enough assets in .... bond funds to cover my current draw down needs for X years. For me I am able to do that to age 90 or 20 years. The excess is invested .... +1 Don't know if it is a stress test; but, that's my approach. The way I look at it the stress depends a lot on the reliance on equit...