Search found 4873 matches

by Dandy
Tue Jan 16, 2018 5:52 pm
Forum: Personal Finance (Not Investing)
Topic: Got raise. Taxes taking 41% of it?
Replies: 23
Views: 1923

Re: Got raise. Taxes taking 41% of it?

I know it doesn't feel like at this time but Medicare and SS taxes are "investments/savings/benefits" for your future. Hopefully, they will be there for you like they are and will be for me and my spouse. I am retired and will begin to collect SS at age 70 in March. It is almost equal to my pension ...
by Dandy
Tue Jan 16, 2018 9:43 am
Forum: Personal Finance (Not Investing)
Topic: why emergency savings?
Replies: 34
Views: 2193

Re: why emergency savings?

Most investors have a decent allocation to fixed income. Total Bond is popular with a current yield of 2.61%. Another popular choice for an emergency fund is Intermediate Tax Free Fund with a current yield of 2.04%. Both tend to be "a drag" on long term performance vs having more assets in equities....
by Dandy
Mon Jan 15, 2018 10:35 pm
Forum: Investing - Help with Personal Investments
Topic: CDs & Savings as a substitute for bonds or bond funds
Replies: 20
Views: 2139

Re: CDs & Savings as a substitute for bonds or bond funds

reinvestment of brokerage CD interest is not as much of a disadvantage in a rising rate environment especially for shorter terms.
by Dandy
Mon Jan 15, 2018 10:50 am
Forum: Investing - Help with Personal Investments
Topic: CDs & Savings as a substitute for bonds or bond funds
Replies: 20
Views: 2139

Re: CDs & Savings as a substitute for bonds or bond funds

Since most investment firms and advisers don't make any money on selling or recommending CDs or Savings accounts and since they can't be traded (except for brokerage CDs) you can understand that people tend to refer to allocations as stocks and bonds. It used to be stocks/bonds/cash. If your fixed i...
by Dandy
Sun Jan 14, 2018 9:34 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Personal Advisory Services Fees
Replies: 33
Views: 2084

Re: Vanguard Personal Advisory Services Fees

I believe some previous posts suggested that the recommended portfolios were somewhat or very close to some TD or LIfe Strategy Funds. That would make some sense since those funds are designed with Vanguard's approach to how people should invest for and in retirement. You are unlikely to find them m...
by Dandy
Sat Jan 13, 2018 4:57 pm
Forum: Investing - Help with Personal Investments
Topic: Rethinking the use of Vanguard Total Bond Fund in my 3 Fund Porfolio
Replies: 5
Views: 854

Re: Rethinking the use of Vanguard Total Bond Fund in my 3 Fund Porfolio

With the exception that treasuries and munis are exempt from federal taxes Treasuries are not exempt from Federal Taxes - state taxes but not Federal. People who do not favor Total Bond often use the Intermediate Bond Index. Mr. Bogle feels that total bond has too much Treasuries and would suggest ...
by Dandy
Sat Jan 13, 2018 8:04 am
Forum: Investing - Help with Personal Investments
Topic: Anyone tired of the stock market going up?
Replies: 290
Views: 25724

Re: Anyone tired of the stock market going up?

I'm not a fan of roller coasters and I feel that fear as the equity car keeps climbing up the track slowly and surely and the people on the ground are looking very small. :oops:
by Dandy
Sat Jan 13, 2018 8:00 am
Forum: Investing - Help with Personal Investments
Topic: How many years of fixed income for Sequence of Return Risk
Replies: 26
Views: 1904

Re: How many years of fixed income for Sequence of Return Risk

I am pretty risk averse but if all you want is to likely bridge to when the equity market recovers then 5 years is probably a good idea. I like your focus on CD, TIPS and short term bond funds for this portion of your portfolio - I think that is where this type of funding should be kept. I also agre...
by Dandy
Fri Jan 12, 2018 3:16 pm
Forum: Investing - Help with Personal Investments
Topic: Help me stop my addiction to stock market peeping!
Replies: 66
Views: 4317

Re: Help me stop my addiction to stock market peeping!

If you are that anxious about your investments in the midst of an historic bull market you will be on the ledge should there be even a modest correction. I think it is fine to check investments very often -- if it doesn't create anxiety or motivate rash moves. In your case you might be better served...
by Dandy
Fri Jan 12, 2018 6:55 am
Forum: Investing - Help with Personal Investments
Topic: Yet another Retiree Emergency Fund Question - Income floor vs EF?
Replies: 13
Views: 744

Re: Yet another Retiree Emergency Fund Question - Income floor vs EF?

I never had something earmarked as an emergency fund. But -- I always had a decent allocation to cash/cashlike products. I do think retirees need to have an allocation to cash/cash-like products. While loss of job may not be something retirees are concerned about don't forget with the loss of human ...
by Dandy
Thu Jan 11, 2018 7:20 am
Forum: Investing - Help with Personal Investments
Topic: Sequence of Return Risk impact on Retirement
Replies: 103
Views: 4109

Re: Sequence of Return Risk impact on Retirement

A bad sequence of returns near or in early retirement can impact portfolio management and other things 1. "enough" turns to not enough affecting retirement planning 2. do you keep buying equities while they are declining? Much easier when you have lots of human capital and a company match. (easier i...
by Dandy
Tue Jan 09, 2018 8:06 am
Forum: Personal Finance (Not Investing)
Topic: Surrender of paid-up additions on whole life policy
Replies: 2
Views: 370

Re: Surrender of paid-up additions on whole life policy

1) I realize I should have researched this before deciding to do so, but did I do the right thing to surrender the PUAs to pay down my loans? Probably given you are being charged 8% for your loan. A lot of answers will depend on how much you need the insurance and your other financial situation e.g...
by Dandy
Tue Jan 09, 2018 7:41 am
Forum: Investing - Theory, News & General
Topic: Living on Dividends and Interest
Replies: 19
Views: 2577

Re: Living on Dividends and Interest

Living well off of just dividends can be great. Now if the dividends were because you had everything tied up in a few individual stocks that would not be great. If the dividends were from a well diversified, low cost, passive mutual fund portfolio that would be ideal.
by Dandy
Tue Jan 09, 2018 7:36 am
Forum: Investing - Theory, News & General
Topic: Why Buy Bonds If You Have A Mortgage?
Replies: 175
Views: 15197

Re: Why Buy Bonds If You Have A Mortgage?

I would opt for liquidity vs paying down. When times get tough having liquidity will be appreciated in general and for possible re balancing when equities are cheaper. Your mortgage rate is great and you can find some 2 or 3 year CDs that pay that % or more - with interest rates likely to rise, the ...
by Dandy
Tue Jan 09, 2018 7:27 am
Forum: Investing - Theory, News & General
Topic: Early Retirement Planning Strategy
Replies: 16
Views: 2241

Re: Early Retirement Planning Strategy

It is great to have a plan/goal. There are so many unknowns when you look that far forward. So, keep the idea alive and control what you can e.g. expenses, savings, allocation, etc. As you get closer the picture of how you will handle health insurance, bridging to Social Security/Medicare will start...
by Dandy
Tue Jan 09, 2018 6:39 am
Forum: Investing - Theory, News & General
Topic: Year 2000 retirees using the '4% rule' - Where are they now?
Replies: 285
Views: 23288

Re: Year 2000 retirees using the '4% rule' - Where are they now?

I think the message is that the "rule" should be a "guide". You don't want to amp up hard expenses (those not easily cut) close to the 4% guide so you leave little room for making spending adjustments when investments are tanking. It seems likely that most people will know enough to cut back on some...
by Dandy
Tue Jan 09, 2018 6:23 am
Forum: Investing - Help with Personal Investments
Topic: Help with giving inheritance money to mother
Replies: 16
Views: 1728

Re: Help with giving inheritance money to mother

An immediate annuity is a good choice but brother can still borrow especially if he knows about additional income. Another idea might be to pay some of mom's bill directly e.g. her car, home, life, health insurance etc. that might increase her disposal income without making it obvious.
by Dandy
Mon Jan 08, 2018 12:22 pm
Forum: Investing - Theory, News & General
Topic: Memo to those who have won the game: it's time to quit playing
Replies: 210
Views: 17581

Re: Memo to those who have won the game: it's time to quit playing

There's a "bigger" game than strategizing one's portfolio to last through retirement. If one has an opportunity to be benevolent, then it's time to "pay it forward". Decent point. But don't forget that there is also a point of not subjecting your heirs to need to help you financially in your old ag...
by Dandy
Mon Jan 08, 2018 7:54 am
Forum: Investing - Theory, News & General
Topic: Memo to those who have won the game: it's time to quit playing
Replies: 210
Views: 17581

Re: Memo to those who have won the game: it's time to quit playing

I follow Dr. Bernstein's idea of having 20 or more of my yearly draw down in "safe" products. My overall allocation is 43/57. I do want a decent allocation to equities to provide some additional inflation protection and because I can take some risk even though I may not need to take this level of ri...
by Dandy
Sun Jan 07, 2018 8:52 am
Forum: Investing - Help with Personal Investments
Topic: Am I market timing with my newly considered AA?
Replies: 11
Views: 845

Re: Am I market timing with my newly considered AA?

As you approach "enough" asset preservation becomes more important than growth. Also, allocation percentages tend to distort the risk which is in dollars. There is also a tendency to believe if someone cuts their equity allocation from 80% to 60% or 50% that they will not have enough growth. Finally...
by Dandy
Sun Jan 07, 2018 8:37 am
Forum: Investing - Help with Personal Investments
Topic: Another - Starting Social Security Question
Replies: 30
Views: 1882

Re: Another - Starting Social Security Question

There is no immediate necessity of SS money to maintain our lifestyle. I think that is one important factor supporting delay in collecting SS. The beauty of SS is that if you delay you can always change your mind if conditions change and benefit by higher SS even if you collect earlier than origina...
by Dandy
Thu Jan 04, 2018 7:26 am
Forum: Investing - Help with Personal Investments
Topic: Question on Fixed part of my 3 fund
Replies: 2
Views: 249

Re: Question on Fixed part of my 3 fund

I would keep it for now especially since rates are in a slow rising trend. But, a lot depends on your alternatives in your plan. If there are low cost fixed income options you might want to use one for some of your fixed income, if not now then down the road.
by Dandy
Wed Jan 03, 2018 6:05 pm
Forum: Investing - Help with Personal Investments
Topic: Age In Bonds after 65 with 25X, 35X, 50X ??? Your Approach?
Replies: 35
Views: 2821

Re: Age In Bonds after 65 with 25X, 35X, 50X ??? Your Approach?

I recognize that both of these decisions will likely reduce my portfolio return. However, since I have “enough”, I am comfortable being conservative and playing defense. That is a point often missed - at some level of assets and age portfolio return can be less important then asset preservation. Yo...
by Dandy
Wed Jan 03, 2018 3:28 pm
Forum: Investing - Help with Personal Investments
Topic: Age In Bonds after 65 with 25X, 35X, 50X ??? Your Approach?
Replies: 35
Views: 2821

Re: Age In Bonds after 65 with 25X, 35X, 50X ??? Your Approach?

I think having more than 2 buckets can be a hassle. But if it works for you then great. I like to think Portfolios rather than buckets (ok it is just a different name but is isn't about lots of filllng) "Safe" portfolio - for me includes short term bond funds and other "safe" products e.g CDs, "Risk...
by Dandy
Wed Jan 03, 2018 7:11 am
Forum: Investing - Help with Personal Investments
Topic: Age In Bonds after 65 with 25X, 35X, 50X ??? Your Approach?
Replies: 35
Views: 2821

Re: Age In Bonds after 65 with 25X, 35X, 50X ??? Your Approach?

I think age in bonds is a reasonable rule of thumb but not something that takes the place of a well thought out investment allocation based on individual circumstances e.g. risk tolerance, income floor, expense growth, human capital/age, other assets, plans for inheritance, insurance/LTC, etc. For t...
by Dandy
Mon Jan 01, 2018 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: Are you generous? If so, why?
Replies: 7
Views: 1156

Re: Are you generous? If so, why?

I don't really know. If you go by dollars and include family gifts as well as charity I'm looking pretty good but when you look at the percentage of my savings/investments I could do better. I'll be 70 next month and will get full SS soon as I age further and nest egg retains value or grows maybe I ...
by Dandy
Mon Jan 01, 2018 12:01 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation
Replies: 7
Views: 568

Re: Asset Allocation

You are entering "interesting times" as the saying goes. The transition from working to retiring has personal and financial issues to manage. On the financial side there is health insurance until qualifying for Medicare, when to take Social Security and possibly pension, funding of retirement until ...
by Dandy
Mon Jan 01, 2018 9:19 am
Forum: Personal Finance (Not Investing)
Topic: Incorporating uncertain pension amount into net worth calculation
Replies: 37
Views: 3064

Re: Incorporating uncertain pension amount into net worth calculation

What is the purpose or value you expect from your calculation of net worth? It is an interesting exercise but I never focused on that value. I wanted to know the value of my investments/savings and potential future income so that I could determine what my retirement lifestyle would be. Sure, I knew ...
by Dandy
Mon Jan 01, 2018 8:55 am
Forum: Personal Finance (Not Investing)
Topic: Did you get an Unexpected Year End Bonus because of the Tax Cut?
Replies: 44
Views: 3276

Re: Did you get an Unexpected Year End Bonus because of the Tax Cut?

Great that several companies are sharing some of their tax cut benefits with their employees even before the firms have actually experienced the actual tax benefit. So you don't look a gift horse in the mouth. One goal of the corporate tax cut was to increase the wages of the middle class. I hope co...
by Dandy
Sun Dec 31, 2017 6:41 am
Forum: Personal Finance (Not Investing)
Topic: What is your threshold for paying down debt?
Replies: 89
Views: 5736

Re: What is your threshold for paying down debt?

Depends on the reason for the debt, the size of the debt and the interest rate. e.g. a mortgage with 20% down or more on a house that you can afford is probably a decent use of debt if it is a traditional 15 years or more mortgage at 4%. Not so good with no money down, adjustable rate etc. Going for...
by Dandy
Sun Dec 31, 2017 6:22 am
Forum: Investing - Theory, News & General
Topic: Paying off mortgage before investing at all?
Replies: 75
Views: 7567

Re: Paying off mortgage before investing at all?

A lot depends on the circumstances. 1. Mortgage rates are historically pretty low a lot depends on the rate. ( my rate was 8% in 1974 :oops: ). 2. Mortgage tax deductions may not be as easy going forward as they once were 3. How much extra disposal income do you have? 4. You want to get the power of...
by Dandy
Sun Dec 31, 2017 5:58 am
Forum: Investing - Help with Personal Investments
Topic: Really risk adverse, advise please ...
Replies: 14
Views: 1817

Re: Really risk adverse, advise please ...

No problem with seeing a fee only adviser but your ongoing issue is going to be execution e.g. re balancing etc. I think you need to get out of individual stocks and put some of your assets in balanced or all in one funds. e.g. Life Strategy, Target Date, Balanced Index, Wellesley Income Funds, etc....
by Dandy
Fri Dec 29, 2017 8:23 am
Forum: Investing - Help with Personal Investments
Topic: BOA Savings Acct vs Amex High Yield Personal Savings Acct
Replies: 13
Views: 856

Re: BOA Savings Acct vs Amex High Yield Personal Savings Acct

BOA Savings account like most big banks is a rip off. I believe they are paying something like 0.04%. I have used BOA checking and it has convenient locations for me. But, I have moved most of my banking assets and activity to 2 online banks/credit unions and I get much better rates and 24/7 custome...
by Dandy
Thu Dec 28, 2017 4:10 pm
Forum: Investing - Theory, News & General
Topic: What the experts say about Bitcoins?
Replies: 114
Views: 7748

Re: What the experts say about Bitcoins?

That's the trouble with highly educated experts. They all think they're so smart. Highly educated experts are usually very smart. A flaw can be when they think their expertise applies outside their field of study/expertise. e.g. A great economist may have little to offer on politics or investing. D...
by Dandy
Tue Dec 26, 2017 12:34 pm
Forum: Investing - Help with Personal Investments
Topic: Should I preserve parents’ risky portfolio? Or “disobey” them?
Replies: 74
Views: 4865

Re: Should I preserve parents’ risky portfolio? Or “disobey” them?

How about enough bonds/CDs/etc for 15 years of the parents' expenses. The rest completely in stocks or 80% stocks/20% bonds. That will give the parents safety and the potential to maximize the amount the heirs get. I feel that the OP is in a fiduciary position and should focus the investments witho...
by Dandy
Tue Dec 26, 2017 10:44 am
Forum: Investing - Help with Personal Investments
Topic: Should I preserve parents’ risky portfolio? Or “disobey” them?
Replies: 74
Views: 4865

Re: Should I preserve parents’ risky portfolio? Or “disobey” them?

I think that you are responsible for their financials. It is not prudent in my opinion for their very high equity allocation and over reliance on individual stocks. I think their former adviser was not good for doing such a high risk portfolio. So I would ignore what the adviser did and your parent'...
by Dandy
Tue Dec 26, 2017 8:55 am
Forum: Personal Consumer Issues
Topic: What frugal thing did you do today?
Replies: 300
Views: 21332

Re: What frugal thing did you do today?

Many frugal actions have benefits every day. e.g. investing in low cost index funds, avoiding credit card debt, etc.
by Dandy
Tue Dec 26, 2017 8:47 am
Forum: Investing - Theory, News & General
Topic: At What Point Do you Just Only Play with "House Money"
Replies: 27
Views: 2252

Re: At What Point Do you Just Only Play with "House Money"

House money, found money, paying only with winnings, etc we all know it is all the same money - our money. I have no problem with those who have enough or are near retirement or in early retirement making their allocation more conservative. That is essentially what you are doing with the combination...
by Dandy
Tue Dec 26, 2017 8:17 am
Forum: Investing - Help with Personal Investments
Topic: Creating a Mid-Tier Emergency Fund
Replies: 21
Views: 2257

Re: Creating a Mid-Tier Emergency Fund

Several Ally Bank 11 month no penalty CDs paying 1.75% is a good choice. If rates go higher you can redeem and buy the higher rate without any early redemption fee. Several instead of 1 since if you need some $$ you don't have to cancel the entire amount.
by Dandy
Sun Dec 24, 2017 8:42 pm
Forum: Investing - Theory, News & General
Topic: Not investing through your 30's
Replies: 60
Views: 5618

Re: Not investing through your 30's

Life balance is important but so is the amazing power of compounding. Giving up all most of your investing for 15 or more years is usually a major mistake IF you don't have to. I remember reading something like If a person who was 20 maxed out his TIRA from age 20 to 30 and stopped and his brother s...
by Dandy
Sun Dec 24, 2017 8:20 pm
Forum: Investing - Help with Personal Investments
Topic: Wrapping my head around creating a 'simple' pre-tax cd-ladder. What do you do?
Replies: 5
Views: 721

Re: Wrapping my head around creating a 'simple' pre-tax cd-ladder. What do you do?

I'm tempted to just do it at Ally (where we're at) and another bank or 2 as the amounts increase... or maybe Vanguard (where rates are obviously lower). You can waste a lot of time chasing rates at 4 or 5 different banks. Ally is a good choice and perhaps pick another that has a history of very goo...
by Dandy
Sat Dec 23, 2017 4:04 pm
Forum: Investing - Help with Personal Investments
Topic: Ever tempted to shut it down once you have “enough”?
Replies: 37
Views: 4219

Re: Ever tempted to shut it down once you have “enough”?

I am lucky enough to have enough - age almost 70 and withdrawal needs less than 2%. I have always been a moderate or conservative investor so in retirement I was looking for what would be the allocation for me. Was 40/60 ok? or maybe it should be higher? or lower? :oops: I am more interested in asse...
by Dandy
Sat Dec 23, 2017 1:26 pm
Forum: Investing - Help with Personal Investments
Topic: Quitting while ahead? Need help properly diversifying.
Replies: 17
Views: 1297

Re: Quitting while ahead? Need help properly diversifying.

I'm not sure this ever works out in real dollars after tax. When people talk about preserving capital but don't say anything about inflation I am not sure what they are really talking about. The OP does say explicitly that he would be happy keeping up with inflation. Who wouldn't be happy keeping u...
by Dandy
Sat Dec 23, 2017 12:26 pm
Forum: Investing - Help with Personal Investments
Topic: Quitting while ahead? Need help properly diversifying.
Replies: 17
Views: 1297

Re: Quitting while ahead? Need help properly diversifying.

There is a trade off between safety and lower taxes. Muni's are good for tax avoidance but still have some risk. A CD has little or no risk but all income is taxable. Perhaps some allocation to Individual Treasury Securities, or EE bonds, could be considered. Sometimes if you want safety you have to...
by Dandy
Fri Dec 22, 2017 3:23 pm
Forum: Personal Finance (Not Investing)
Topic: Should I Cash Out my NML Whole Life Insurance?
Replies: 11
Views: 1029

Re: Should I Cash Out my NML Whole Life Insurance?

That $50 is buying at least $10,000 of insurance and that $50 will decline until the dividend will eventually pays all of the premium and generates extra for you. At a basic level compare what face amount of term insurance coverage you can get for $50/year to see if the whole life might be a better ...
by Dandy
Fri Dec 22, 2017 2:38 pm
Forum: Investing - Theory, News & General
Topic: Saving for the crash
Replies: 58
Views: 7313

Re: Saving for the crash

If you set your allocation at or near you risk tolerance then re balancing should adjust any "over exposure" to equities. I see no problem when equities are on a hot streak to maybe re balance a bit toward the lower end of your equity allocation range. I'm more into asset preservation than go for gr...
by Dandy
Thu Dec 21, 2017 10:52 pm
Forum: Personal Finance (Not Investing)
Topic: Should I Cash Out my NML Whole Life Insurance?
Replies: 11
Views: 1029

Re: Should I Cash Out my NML Whole Life Insurance?

The 1988 policy might be worth keeping since the yearly premium is $105 and the dividend is about half of that. So you are getting some insurance for about $50 a year. But, what you haven't identified is the face value of the policy e.g. how much insurance does your premium buy? Whole life is often ...
by Dandy
Thu Dec 21, 2017 10:39 pm
Forum: Personal Finance (Not Investing)
Topic: Thinking of cancelling my whole life insurance
Replies: 4
Views: 582

Re: Thinking of cancelling my whole life insurance

Get the term first then cancel the whole life. You want to make sure you are insurable before cancelling or you might end up with no insurance -- long shot but why risk it.
by Dandy
Thu Dec 21, 2017 10:33 pm
Forum: Investing - Help with Personal Investments
Topic: Feels dumb to hold bonds - Currently 70% Stocks 30% Bonds
Replies: 96
Views: 11235

Re: Feels dumb to hold bonds - Currently 70% Stocks 30% Bonds

Since stock outperform bonds by a lot over the long run anything less than 100% could be viewed as a drag on performance. Not many investment guru's recommend a 30 year old have 100% in stocks. You will feel better about bonds when the stock market plunges and you have some bonds to re balance and b...
by Dandy
Thu Dec 21, 2017 9:06 am
Forum: Personal Finance (Not Investing)
Topic: A meal with friends yields a financial revelation
Replies: 95
Views: 11725

Re: A meal with friends yields a financial revelation

Being frugal and following the Boglehead investing approach is part philosophy and part a means to an end. To me I will always care about expenditures but that doesn't mean I won't treat myself or my family to some things once in awhile or that I won't re evaluate whether I should keep a car for 14 ...