Search found 5332 matches

by Dandy
Mon Oct 15, 2018 3:33 pm
Forum: Personal Finance (Not Investing)
Topic: Kids and Money
Replies: 36
Views: 1266

Re: Kids and Money

to me talking about money is a very small part of their financial behavior. It is the thousand things you do and say during their growth. They see how you spend money and when you do that is always an opportunity. Some examples, took the kids when they were young to Florida. Stayed at the beach but ...
by Dandy
Mon Oct 15, 2018 1:17 pm
Forum: Investing - Theory, News & General
Topic: "Safe" Withdrawal Rate for Early Retirees (or any retiree)
Replies: 159
Views: 11193

Re: "Safe" Withdrawal Rate for Early Retirees (or any retiree)

It seems as if people want a plan of withdrawal that is safe and is not subject to change and that it will last their entire retirement. What I would call set it and forget it. If only there were a financial product people could buy using a fixed amount of money up front that would provide a guaran...
by Dandy
Sun Oct 14, 2018 8:50 am
Forum: Investing - Theory, News & General
Topic: "Safe" Withdrawal Rate for Early Retirees (or any retiree)
Replies: 159
Views: 11193

Re: "Safe" Withdrawal Rate for Early Retirees (or any retiree)

I think you might be reading a bit too much into what people mean when they talk about their WR, or even SWR. I suspect very few people are looking for, or use, the " set it and forget it. Just follow the original plan no matter the market, inflation, interest rates, the current size of my portfoli...
by Dandy
Sun Oct 14, 2018 6:40 am
Forum: Investing - Theory, News & General
Topic: "Safe" Withdrawal Rate for Early Retirees (or any retiree)
Replies: 159
Views: 11193

Re: "Safe" Withdrawal Rate for Early Retirees (or any retiree)

It seems as if people want a plan of withdrawal that is safe and is not subject to change and that it will last their entire retirement. What I would call set it and forget it. Just follow the original plan no matter the market, inflation, interest rates, the current size of my portfolio, etc. It wo...
by Dandy
Sat Oct 13, 2018 5:55 pm
Forum: Investing - Theory, News & General
Topic: "Safe" Withdrawal Rate for Early Retirees (or any retiree)
Replies: 159
Views: 11193

Re: "Safe" Withdrawal Rate for Early Retirees (or any retiree)

How will you know when you really need to make adjustments if you encounter a very poor sequence of returns, and what kind of adjustments are possible? Ah, the question for the ages -the retirement ages. I agree that once a withdrawal plan is established when do you dial back? or dial up? You have ...
by Dandy
Sat Oct 13, 2018 11:19 am
Forum: Investing - Theory, News & General
Topic: "Safe" Withdrawal Rate for Early Retirees (or any retiree)
Replies: 159
Views: 11193

Re: "Safe" Withdrawal Rate for Early Retirees (or any retiree)

It's important to keep in mind that when Bengen originally defined "safe withdrawal rate," completely draining the portfolio after 30 years was an acceptable outcome. But it's also important to remember that that only happened in the very worst historical scenarios. Most of the time, the '4% rule' ...
by Dandy
Sat Oct 13, 2018 8:51 am
Forum: Investing - Theory, News & General
Topic: "Safe" Withdrawal Rate for Early Retirees (or any retiree)
Replies: 159
Views: 11193

Re: "Safe" Withdrawal Rate for Early Retirees (or any retiree)

In reality, virtually no sane person maintains their inflation-adjusted spending when the markets are tanking. +1 That is probably the 'saving" grace of the "safe" withdrawal rate idea. My concerns are that the origin of "safe" may have been a push to the higher limit of "safe" vs a reasonable limi...
by Dandy
Fri Oct 12, 2018 1:05 pm
Forum: Investing - Help with Personal Investments
Topic: Lump sum vs pension
Replies: 14
Views: 1351

Re: Lump sum vs pension

these are tough decisions especially if you are retiring on the younger side. A lot depends on the viability of the company, your age, how large of a retirement nest egg you have, your retirement expenses, etc. I generally favor a pension vs a lump sum. Life time income, a bit of a bridge to taking ...
by Dandy
Fri Oct 12, 2018 12:44 pm
Forum: Investing - Help with Personal Investments
Topic: 6 month Treasury Note: "Bond" or "Cash"?
Replies: 39
Views: 2778

Re: 6 month Treasury Note: "Bond" or "Cash"?

You can drive yourself crazy trying to define cash. I gave up and decided to use Principal safe, short term and intermediate term fixed income. I define Principal Safe as Savings, Money Market, CDs, EE bonds, etc. That still creates category issues. e.g. what about a 5 year CD. It goes in Principal ...
by Dandy
Fri Oct 12, 2018 9:26 am
Forum: Investing - Theory, News & General
Topic: Allan Roth doesn't like single premium annuities
Replies: 185
Views: 9087

Re: Allan Roth doesn't like single premium annuities

If you don't want to follow the link, they are: 1) Delaying social security to 70, which provides you with an inflation-adjusted annuity at minimal direct cost; 2) Employer pension, if you work for a company with a pension; 3) TIAA Traditional Annuity, if you work for a non-profit with access to TI...
by Dandy
Fri Oct 12, 2018 8:06 am
Forum: Investing - Theory, News & General
Topic: Unfortunate Near Real-Time Test of Sequence of Returns Risk v Probability of Retirement Success
Replies: 19
Views: 1704

Re: Unfortunate Near Real-Time Test of Sequence of Returns Risk v Probability of Retirement Success

85% equity allocation in retirement is quite aggressive. With 3.5 million in assets it seems, without further information, not necessary. The recent days of bad markets is a bit scary but not that unusual, when corrections often reach 20% and more with some frequency. I would look to your need to be...
by Dandy
Fri Oct 12, 2018 7:59 am
Forum: Investing - Help with Personal Investments
Topic: Bonds for an aggressive investor
Replies: 25
Views: 2380

Re: Bonds for an aggressive investor

At 36 you are not that young (but since I'm 70 that does seem pretty young!!). Anyhow, even aggressive 36 year olds should probably have 20% or more in fixed income. Most recommend a decent intermediate bond fund. I have no problem with that. I wonder if aggressive investors, especially in a rising ...
by Dandy
Fri Oct 12, 2018 7:45 am
Forum: Investing - Help with Personal Investments
Topic: What did you buy today
Replies: 108
Views: 7399

Re: What did you buy today

very modest buys of Balanced Index in my TIRA and Value Index in my wife's Roth. A series of really bad days are sometimes a modest buy for me as long as I stay within my modest equity allocation band.
by Dandy
Fri Oct 12, 2018 7:40 am
Forum: Investing - Help with Personal Investments
Topic: To Roth IRA or Not
Replies: 13
Views: 953

Re: To ROTH IRA or Not

Roth's weren't available for almost all my working career. I plowed a lot of money in my 401k and only had a few years to contribute to a Roth. I enjoyed the tax savings of investing in the 401k especially in my higher earning years. I have a decent pension and am took SS at age 70. And now have lar...
by Dandy
Fri Oct 12, 2018 7:29 am
Forum: Investing - Help with Personal Investments
Topic: Relaxing in America during this current market drop
Replies: 20
Views: 4094

Re: Relaxing in America during this current market drop

Good approach. I can't say I'm relaxed but I'm not worried. I also have a modest allocation to equities -43% a few days ago. I also agree that I'm not likely to make heavy buys into equities. But, after some really bad days, like we have just had, I may make some modest equity buys in my TIRA or Rot...
by Dandy
Wed Oct 10, 2018 9:11 am
Forum: Investing - Theory, News & General
Topic: Allan Roth doesn't like single premium annuities
Replies: 185
Views: 9087

Re: Allan Roth doesn't like single premium annuities

Annuity offering insurance companies usually have to invest in longer term bonds to match their liabilities. Those rates haven't been rising as much as shorter term rates. I wouldn't be too confident yet that current rising rate environment is going to bring much higher annuity payout rates soon. Of...
by Dandy
Wed Oct 10, 2018 8:11 am
Forum: Investing - Help with Personal Investments
Topic: Calculating amount needed for SS bridge
Replies: 50
Views: 2784

Re: Calculating amount needed for SS bridge

The bridge to SS is not the years times how much you will collect at age 70. It is how much you need to supplement your income to cover the retirement expenses needed to support your desired life style while you on on the bridge. e.g. suppose your living expenses are 75k per year and you have a pens...
by Dandy
Wed Oct 10, 2018 7:50 am
Forum: Investing - Help with Personal Investments
Topic: Annuities
Replies: 12
Views: 990

Re: Annuities

Most annuities sold at a bank when people are usually buying CDs are not a great idea. 62 is rather young for purchasing any annuity even a good one. You need to provide more information on your need for income and your financial situation and the actual annuity product offered to get a better respo...
by Dandy
Wed Oct 10, 2018 7:38 am
Forum: Investing - Help with Personal Investments
Topic: Rebalance Now, Sell Stock Next Year Due to Tax Consequences
Replies: 13
Views: 1252

Re: Rebalance Now, Sell Stock Next Year Due to Tax Consequences

If you manage you investments and allocation for your entire portfolio vs taxable and non taxable separate then use non taxable to rebalance. You could also change your future contributions to either group.
by Dandy
Wed Oct 10, 2018 7:31 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard vs others
Replies: 27
Views: 1765

Re: Vanguard vs others

A few thoughts. 1. Vanguard's success at providing low cost mutual funds has resulted in changing the industry for the better. Now it faces competition on its very core advantage. 2. Other providers offer possibly better services, web sites etc. than Vanguard in addition to creating competitive cost...
by Dandy
Wed Oct 10, 2018 7:04 am
Forum: Investing - Help with Personal Investments
Topic: Allocation re: Social Security
Replies: 13
Views: 1005

Re: Allocation re: Social Security

Social Security is a great source of future income to be sure. For those who will get SS it allows you to take more risk with your investment portfolio -- if you choose to. There are some calculations to help you estimate what level of additional risk might be suggested. All that is fine. Just don't...
by Dandy
Tue Oct 09, 2018 7:31 pm
Forum: Investing - Theory, News & General
Topic: Allan Roth doesn't like single premium annuities
Replies: 185
Views: 9087

Re: Allan Roth doesn't like single premium annuities

There is an issue of whether it is a good deal from a profit and loss type view e.g. you're a loser if you didn't outlive the payback period and barely a winner if you do. But there are other quality of life issues such as I don't want to outlive my income, I want more income to meet current expense...
by Dandy
Mon Oct 08, 2018 6:35 pm
Forum: Investing - Theory, News & General
Topic: "Safe" Withdrawal Rate for Early Retirees (or any retiree)
Replies: 159
Views: 11193

Re: "Safe" Withdrawal Rate for Early Retirees (or any retiree)

In general there is no set it and forget it "safe" withdrawal rate of 4% adjusted upward for inflation. 2 or 3% seems very safe but a lot depends on your allocation, how many years you live, unplanned expenses and the behavior of the markets. Back testing can be reassuring but the future is unknown....
by Dandy
Mon Oct 08, 2018 10:40 am
Forum: Investing - Theory, News & General
Topic: What part of your investment philosophy was "Inspired by Jack Bogle"?
Replies: 27
Views: 1075

Re: What part of your investment philosophy was "Inspired by Jack Bogle"?

Use low cost, passive, diversified index funds. That advice was worth almost everything. I didn't follow: stay the course no matter what (and neither did he). Or don't peek (and I'm guessing he looked at his investment statements at some time before he retired). I got numerous help from this forum t...
by Dandy
Mon Oct 08, 2018 10:23 am
Forum: Investing - Theory, News & General
Topic: Fidelity 1.8% money market fund with unlimited checkwriting and free ATMs
Replies: 23
Views: 2026

Re: Fidelity 1.8% money market fund with unlimited checkwriting and free ATMs

Vanguard's almost hidden cash management account called the Advantage Account offers unlimited checking from the Fed Money Market Fund now paying 2% and offers ATM withdrawals at PNC banks (haven't ever used it). It is "free" for Flagship customers. Don't know what non Flagship members pay. It has b...
by Dandy
Mon Oct 08, 2018 10:13 am
Forum: Investing - Theory, News & General
Topic: Allan Roth doesn't like single premium annuities
Replies: 185
Views: 9087

Re: Alan Roth doesn't like single premium annuities

I just tried a quick quote at immediate annuities.com. I told it I was 65 and my spouse 61 (which is false, but a reasonable situation). For $200k now, in my state they say an "average" quote will pay$ 900 a month with survivor benefits. So if I had $400,000 saved, I'm writing them a check for 1/2 ...
by Dandy
Mon Oct 08, 2018 10:01 am
Forum: Investing - Theory, News & General
Topic: Investment grade bonds now made up of 50% BBB rated
Replies: 26
Views: 2651

Re: Total Bond Market fund not what it used to be

total bond is a decent bond fund. But I always felt that if you have a large allocation to fixed income it might be wise to have a bit more diversity. total bond isn't total like the total stock market index fund. It doesn't cover all fixed income products. There are muni bonds, inflation protected ...
by Dandy
Mon Oct 08, 2018 9:22 am
Forum: Investing - Theory, News & General
Topic: Allan Roth doesn't like single premium annuities
Replies: 185
Views: 9087

Re: Alan Roth doesn't like single premium annuities

When people are set to retire they are sometimes given a choice between a lump sum and a pension (usually non COLA). The lump sum is usually several hundred thousand dollars. The advice on this forum is somewhat split some say take the lump and invest it and others say the pension. But it is a simil...
by Dandy
Mon Oct 08, 2018 7:21 am
Forum: Investing - Theory, News & General
Topic: Allan Roth doesn't like single premium annuities
Replies: 185
Views: 9087

Re: Alan Roth doesn't like single premium annuities

CD: 300K will spin off $9600 a year with a 3.2% 5 year CD...but you get to keep your money. If you withdrew 20K per year, it would last 15 years. That would take one to age 90. 300K will spin off $28044 a year with a SPIA...that's 9.3% a year ....but your nest egg is gone. Not the usual decision is...
by Dandy
Sun Oct 07, 2018 9:32 pm
Forum: Investing - Theory, News & General
Topic: Allan Roth doesn't like single premium annuities
Replies: 185
Views: 9087

Re: Alan Roth doesn't like single premium annuities

If the product serves your need while you are alive it pretty much serves its purpose. You can die a few years after taking out a CD or TIPS ladder too. You won't get the benefit of the CDs or TIPS ladder either. Your spouse/heirs may have some benefit. What if you don't have a spouse? or heirs? or ...
by Dandy
Sun Oct 07, 2018 2:49 pm
Forum: Investing - Theory, News & General
Topic: Allan Roth doesn't like single premium annuities
Replies: 185
Views: 9087

Re: Alan Roth doesn't like single premium annuities

There are people who really need income to meet their needs in retirement. If they have modest assets and are somewhat risk averse they often look to CDs. But if the CDs don't pay enough interest income then they start supplementing that with consuming assets to try to make ends meet. Fewer assets m...
by Dandy
Sun Oct 07, 2018 7:11 am
Forum: Investing - Help with Personal Investments
Topic: Is it possible to rebalance too quickly when shifting from equity to fixed income?
Replies: 6
Views: 935

Re: Is it possible to rebalance too quickly when shifting from equity to fixed income?

I read another thread comment to the effect of "once you've won the game, take your chips off the table". I feel like I'm at that point. My goal now is to preserve capital. I basically follow the Dr. Bernstein idea of having 20 years worth of drawdown in "safe" products e.g. CDs, FDIC products, sho...
by Dandy
Sat Oct 06, 2018 7:12 pm
Forum: Investing - Theory, News & General
Topic: “It’s probably wise to sell to the sleeping point.” - Jack Bogle
Replies: 83
Views: 11399

Re: “It’s probably wise to sell to the sleeping point.”

Valuations and risk matter more in retirement. Loss of human capital makes it hard to make up losses and emerging health and declining mental abilities issues loom. That doesn't mean wholesale changes to the allocation often but does suggest sometimes it may be needed. The last 8 years have made man...
by Dandy
Sat Oct 06, 2018 6:35 pm
Forum: Investing - Help with Personal Investments
Topic: The Psychological Dimension Of The Transition To Retirement
Replies: 25
Views: 2780

Re: The Psychological Dimension Of The Transition To Retirement

I was forced to retire in 2008 at age 60- not great timing. I went from having more than enough to maybe not. I was lucky to have a modest pension, retiree health insurance and no mortgage. But it was scary and different to watch the assets decline and still have to withdraw some on top of that. Aft...
by Dandy
Sat Oct 06, 2018 3:45 pm
Forum: Personal Consumer Issues
Topic: Aren't we overdoing electronic auto safety features?
Replies: 267
Views: 36690

Re: Aren't we overdoing electronic auto safety features?

Quick update on this topic, http://www.reuters.com/article/2015/09/14/us-autos-safety-braking-idUSKCN0RB1X720150914 I personally don't need it as I am a perfect driver who will never make a mistake :wink: , but look forward to everyone driving behind me to have auto braking technology. What about t...
by Dandy
Sat Oct 06, 2018 3:41 pm
Forum: Investing - Theory, News & General
Topic: Allan Roth doesn't like single premium annuities
Replies: 185
Views: 9087

Re: Alan Roth doesn't like single premium annuities

A single pay immediate annuity isn't a scam - though many other annuities have scam-like qualities and should be avoided. They are useful to some people, especially those blessed with good longevity genes and who don't have a decent source of "guaranteed" lifetime income. They are better the older y...
by Dandy
Sat Oct 06, 2018 10:16 am
Forum: Investing - Theory, News & General
Topic: Allan Roth doesn't like single premium annuities
Replies: 185
Views: 9087

Re: Alan Roth doesn't like single premium annuities

Interesting that people don't complain that Social Security is just giving your own money back for awhile - of course it is inflation protected and not a choice. As far as being comfortable about giving away some of your inheritance that isn't necessarily so. Yes especially if it is a large amount a...
by Dandy
Sat Oct 06, 2018 8:25 am
Forum: Investing - Theory, News & General
Topic: Allan Roth doesn't like single premium annuities
Replies: 185
Views: 9087

Re: Alan Roth doesn't like single premium annuities

A single pay annuity is a good product/tool for some people in some instances. Since they are usually sold by those getting a commission they are often sold to people who might be better off with a different product or by putting a lesser amount into the product. Many retirees who are not investment...
by Dandy
Sat Oct 06, 2018 8:00 am
Forum: Investing - Help with Personal Investments
Topic: Should we pay off $90K mortgage with idle cash or not?
Replies: 46
Views: 5738

Re: Should we pay off $90K mortgage with idle cash or not?

I have accounts at Discover Bank and their current savings account rate is 1.8%. I just did some research and I found some other online banks paying 1.85% and 1.9% but nothing at 2.35%. Would you mind sharing names? I would be careful about chasing rates with banks and credit unions. Many have teas...
by Dandy
Fri Oct 05, 2018 4:55 pm
Forum: Investing - Help with Personal Investments
Topic: Inheriting money
Replies: 11
Views: 1966

Re: Inheriting money

Inheriting 2 million probably means you are less in need of growth than of asset preservation. 1. first up is to decide on what allocation makes sense for you. Probably somewhere between 40/60 and 60/40. 2. Next is to consolidate the number of firms you have to deal with to one or two. Vanguard, Fid...
by Dandy
Fri Oct 05, 2018 4:22 pm
Forum: Investing - Help with Personal Investments
Topic: My company does not offer 401k match, should I forego contributing to it?
Replies: 13
Views: 1179

Re: My company does not offer 401k match, should I forego contributing to it?

A lot depends on the choices offered and especially their expenses. I just can't believe the Wells Fargo will offer excellent choices e.g. low cost, diversified index funds. You should list what your choices are so you can get more specific answers. Tax deferred investments are to be treasured -- un...
by Dandy
Thu Oct 04, 2018 5:21 pm
Forum: Investing - Theory, News & General
Topic: Enjoying your money before retirement
Replies: 65
Views: 6191

Re: Enjoying your money before retirement

I think most people would say max out your retirement savings. This becomes even more important with the demise of the traditional pensions combined with a longer and medically expensive life span. That being said having some assets not in the an TIRA or 401k is often a good idea or can't be avoided...
by Dandy
Wed Oct 03, 2018 5:52 pm
Forum: Investing - Help with Personal Investments
Topic: Turning 70 1/2 next year 73% in US stocks in Portfolio
Replies: 25
Views: 2724

Re: Turning 70 1/2 next year 73% in US stocks in Portfolio

For me it is/was what is my need to take risk. I liked Dr. Bernstein's idea of determining what draw down I needed to supplement my other retirement income (pension/ss) each year. I put enough to fund my retirement to age 90 in "safe" fixed income (CDs, short term bonds, etc.) the rest is invested a...
by Dandy
Mon Sep 24, 2018 2:08 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with a windfall
Replies: 10
Views: 1498

Re: What to do with a windfall

I hadn't considered a bond fund. Do you think that hoping to get a ~3% return from a bond fund like that versus just taking the 1.85% return that I get from my Ally savings account is worth the extra work at tax season? I was assuming that you might want a relatively safe place to get tax free (fed...
by Dandy
Mon Sep 24, 2018 1:05 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with a windfall
Replies: 10
Views: 1498

Re: What to do with a windfall

I would keep the money relatively liquid with a wedding, a house/baby not too far in the future. I might use Ltd Term Tax Exempt fund to minimize taxes.
by Dandy
Mon Sep 24, 2018 12:58 pm
Forum: Investing - Help with Personal Investments
Topic: To Keep or Cash-in Whole Life Policy
Replies: 6
Views: 908

Re: To Keep or Cash-in Whole Life Policy

Whole life policies that have been paid for 22 years might have some good benefits that might make it worth keeping in some form. 1. You need to look at what dividends this policy is paying. Policies that have been held for that long usually have a decent size dividend. You have been using that to b...
by Dandy
Mon Sep 24, 2018 7:41 am
Forum: Investing - Help with Personal Investments
Topic: How to set up direct deposit to Vanguard Prime Money Market?
Replies: 29
Views: 3242

Re: How to set up direct deposit to Vanguard Prime Money Market?

From what I understand, if you setup "Vanguard Advantage" in your account (flagship only offering), you can designate the PMM to be a checking-like account. Meaning you can direct deposit to it and write checks against it. Is that correct? I believe flagship isn't the only group that can have the A...
by Dandy
Mon Sep 24, 2018 6:39 am
Forum: Personal Finance (Not Investing)
Topic: 0 - 0.99% APR on auto... would you finance?
Replies: 35
Views: 3729

Re: 0 - 0.99% APR on auto... would you finance?

You win some, you lose some. Other times, it's even Steven. Small wins are almost guaranteed if you don't play the market and put the cash originally targeted for car purchase in a money market or online savings account. The "risk" is similar to those who buy term and invest the difference. Do they...
by Dandy
Sun Sep 23, 2018 5:12 pm
Forum: Personal Finance (Not Investing)
Topic: Physical Banking - Any benefits anymore?
Replies: 139
Views: 8674

Re: Physical Banking - Any benefits anymore?

I haven't cut ties completely with BofA yet. When there was a fraud on my checking/HELOC it was helpful to be able to meet face to face with a banking person. Last year I needed a cashier's check and that was convenient. Oh and nice to hand in rolls of change and get cash. All that being said I use ...
by Dandy
Sun Sep 23, 2018 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: Long Term Care
Replies: 92
Views: 4662

Re: Long Term Care

I feel you have enough assets/income to self insure or certainly to buy LTC policies for both of you. I have less assets/income and have decided to self insure. I usually err on being insured in almost every way. I would love to take this risk off the table. But the insurance companies don't know ho...