Search found 5548 matches

by Dandy
Mon Feb 18, 2019 6:17 pm
Forum: Investing - Theory, News & General
Topic: Do you look back and wish you were more aggressive?
Replies: 34
Views: 2264

Re: Do you look back and wish you were more aggressive?

No. Sure being very aggressive would have most likely resulted in a much larger asset. That wasn't and isn't me. Saved a lot from my first job on, watched expenses, never had more than 55% equity allocation. Had lots of luck. My retirement income almost equals our normal expenses and I have a large ...
by Dandy
Mon Feb 18, 2019 5:54 pm
Forum: Personal Investments
Topic: “Won the Game” how do you know?
Replies: 32
Views: 2758

Re: “Won the Game” how do you know?

Retired before age 70 I "probably won the game" based on pension income and a moderate allocation that required less than 2% withdrawal to meet my normal expenses. After 70 "won the game" when pension and social security almost equaled our normal expenses and the withdrawal would be less than 1% wit...
by Dandy
Mon Feb 18, 2019 8:25 am
Forum: Investing - Theory, News & General
Topic: Two-Fund & Three-Fund Not Diversified Enough for Large Investments?
Replies: 26
Views: 2901

Re: Two-Fund & Three-Fund Not Diversified Enough for Large Investments?

I would find some way to protect a large sum needed to secure a modest life style in very safe products. Not familiar with all the options but Treasury Bills, CDs, I bonds, individual TIPS, etc. I would not have it all "invested" in stocks and bonds. Also maybe some modest investment in income produ...
by Dandy
Mon Feb 18, 2019 8:04 am
Forum: Personal Investments
Topic: Keep big bank or CU?
Replies: 10
Views: 755

Re: Keep big bank or CU?

I recommend looking at the reviews of any bank or credit union on depositaccounts.com. Keep in mind that there is a bias toward negative e.g. if you have a problem you are more likely to write a review. Go to the review area and page down to where it says "view more reviews". It recaps the reviews b...
by Dandy
Mon Feb 18, 2019 7:17 am
Forum: Personal Investments
Topic: Keep big bank or CU?
Replies: 10
Views: 755

Re: Keep big bank or CU?

Congrats on making your financial life more simple. I think you have to ask yourself how complicated is having a bank and an CU? It might be good to have 2 financial options should one be compromised. I had a fraud on my big bank and it was nice to know that I had a CU to fall back on while the frau...
by Dandy
Sun Feb 17, 2019 7:35 am
Forum: Investing - Theory, News & General
Topic: 30 years not long enough to calculate SWR?
Replies: 26
Views: 1677

Re: 30 years not long enough to calculate SWR?

I think there is no set it and forget it withdrawal strategy as much as we all would like that. Too many variables with a several decades retirement given changes in investments, interest rates, inflation, taxes, medical expenses, long term care possibilities, etc. So, pick a reasonable approach to ...
by Dandy
Sat Feb 16, 2019 8:13 am
Forum: Personal Finance (Not Investing)
Topic: Retirement Budgeting - What Do You Spend?
Replies: 39
Views: 3471

Re: Retirement Budgeting - What Do You Spend?

I never had a real budget but always kept a keen eye on expenses. Here is what I do in retirement: 1. I run all expense payments through our checking account. Monthly, I post those payments to about 20 categories on a spreadsheet. e.g. on line for each utility, each credit card, each insurance, ATM ...
by Dandy
Sat Feb 16, 2019 7:54 am
Forum: Personal Finance (Not Investing)
Topic: Do you tell your beneficiaries?
Replies: 69
Views: 4187

Re: Do you tell your beneficiaries?

Our beneficiaries are our 2 married daughters. I am 71 this month and we wanted to have our children aware of our financial position, which is good, to be aware of things as we age further and may need help managing expenses and investments. Last year we started the financial picture discussions and...
by Dandy
Fri Feb 15, 2019 9:04 am
Forum: Personal Investments
Topic: Asset Allocation and Bonds
Replies: 4
Views: 523

Re: Asset Allocation and Bonds

It is hard to give advice on allocations when you haven't outlined your financial picture e.g. size of nest egg, estimated retirement expenses, retirement income, how much you will have to withdraw from investments to supplement any retirement income. In general, the years just before and just after...
by Dandy
Thu Feb 14, 2019 4:09 pm
Forum: Personal Investments
Topic: How much should my net worth be if ...
Replies: 18
Views: 3057

Re: How much should my net worth be if ...

Your assets should be enough. Buying a house in retirement might be more of an ongoing expense than you are used to. Also, at a certain age doing a lot of the self maintenance gives way to outsourcing and more expense. I retired at age 60 and did a lot of work around and in the house. I found that a...
by Dandy
Tue Feb 12, 2019 2:04 pm
Forum: Personal Investments
Topic: What stress test do you run on your retirement portfolio?
Replies: 39
Views: 2211

Re: What stress test do you run on your retirement portfolio?

There are two needed "tests" 1. are my expenses stable? 2. Based on my current expense run rate do I have enough "safe" fixed income to fund my retirement until age 90. I track monthly expenses into about 20 or so categories e.g. each utility, each credit card (total not detail), each insurance, etc...
by Dandy
Tue Feb 12, 2019 11:01 am
Forum: Investing - Theory, News & General
Topic: How much Fixed Income on the day you retire?
Replies: 76
Views: 5282

Re: How much Fixed Income on the day you retire?

I don't recall how many years I had when I was suddenly retired at age 60. But I had a modest pension from a former employer, no mortgage and retiree medical. So, there are lots of large factors to consider. Also, if you are going to fund the expenses to collect SS beyond 62. For me that was to age ...
by Dandy
Tue Feb 12, 2019 10:41 am
Forum: Investing - Theory, News & General
Topic: How Investing Ability Changes With Age --blog post
Replies: 33
Views: 2454

Re: How Investing Ability Changes With Age --blog post

I'm almost 71 and have noticed some decline e.g. making a few more mistakes with checkbook -- nothing major. Most people have very little financial education and tend to rely on friends, relatives, media or advisers on how to invest. When I was in college only a small percentage of women were busine...
by Dandy
Tue Feb 12, 2019 7:09 am
Forum: Personal Investments
Topic: Roth Advantage not discussed?
Replies: 26
Views: 1929

Re: Roth Advantage not discussed?

It is a tricky choice. Retirement can be 30 years or more almost as long as a career. We often look at our TIRA/401k as what will be the "number" at retirement and under play the fact that the compounding continues after retirement and the impact of RMD on post 70 taxes. The tax savings while workin...
by Dandy
Mon Feb 11, 2019 11:08 am
Forum: Personal Finance (Not Investing)
Topic: When You Realized You Don't Need 401k in Retirement...
Replies: 34
Views: 3495

Re: When You Realized You Don't Need 401k in Retirement...

I think it means you can be a bit less frugal and a bit more generous with yourself, your children and charities. A bit not alot yet since, as you noted, things can change. It also means you can decide to take less or more risk with your portfolio. I would tend to take less risk. Later, if your good...
by Dandy
Sun Feb 10, 2019 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: Newlyweds and joint accounts for household expenses
Replies: 120
Views: 5612

Re: Newlyweds and joint accounts for household expenses

We always had joint accounts. I can see that there may be some reasons not to. I think there is a compromise option. Each establishes a Savings account and keeps a modest balance in it. Have paycheck sent to each savings account. 2X a month each automatically transfers the net pay to a joint checkin...
by Dandy
Sun Feb 10, 2019 8:41 am
Forum: Personal Finance (Not Investing)
Topic: 2 years in community college, then transfer? need opinion please
Replies: 118
Views: 5515

Re: 2 years in community college, then transfer? need opinion please

In general seems like a great plan to help someone reach their goal. In my limited, dated experience there are substantial college costs that are difficult to uncover until you attend. e.g. parking, student activity fee, I can't recall the others. They acted somewhat like the airlines adding fees cr...
by Dandy
Sat Feb 09, 2019 9:48 pm
Forum: Personal Investments
Topic: Which fixed income ? Total Bond, Treasury, Inflation Protected
Replies: 32
Views: 2375

Re: Which fixed income ? Total Bond, Treasury, Inflation Protected

Total Bond Index includes a large allocation to Treasury bonds.
I know it is about 43% last time I looked. All the better. :happy
by Dandy
Sat Feb 09, 2019 3:12 pm
Forum: Investing - Theory, News & General
Topic: If you are old, why bother with rebalancing!!?
Replies: 114
Views: 7609

Re: If you are old, why bother with rebalancing!!?

Probably true in most cases. Not a big fan in rebalancing most sub accounts but feel the overall equity/fixed income allocation has some rebalancing value especially maintaining adequate fixed income assets. There are many expensive potential bumps in the road for many retirees as they age and maybe...
by Dandy
Sat Feb 09, 2019 12:41 pm
Forum: Personal Investments
Topic: Which fixed income ? Total Bond, Treasury, Inflation Protected
Replies: 32
Views: 2375

Re: Which fixed income ? Total Bond, Treasury, Inflation Protected

A lot depends on where you hold the 500k in fixed income - taxable or tax sheltered account. Also, You haven't given your current or projected nest egg amount so how much beyond the 500k is left in equities. Also, if held in taxable account do you have a state income tax. The fact that you can meet ...
by Dandy
Fri Feb 08, 2019 10:05 am
Forum: Investing - Theory, News & General
Topic: Can you rebalance your way to $0?
Replies: 35
Views: 2741

Re: Can you rebalance your way to $0?

rebanancing is generally a good idea to keep portfolio risk near your educated guess at your risk tolerance. It is much easier in the accumulation stage since you likely have income that supports your needs and money left over for investment/rebalancing. Retirement can change the dynamics a bit. You...
by Dandy
Fri Feb 08, 2019 9:36 am
Forum: Personal Finance (Not Investing)
Topic: pension decision help
Replies: 13
Views: 1434

Re: pension decision help

The payments and SS will more than cover basic needs I have always favored taking the pension if the company and pension assets are sound. I am almost 71 and my pension and SS cover our basic expenses. It is nice to not have to fret much about what is happening to the stock market. Inflation is alw...
by Dandy
Thu Feb 07, 2019 8:10 am
Forum: Personal Finance (Not Investing)
Topic: Whole Life policy handed down - IRR?
Replies: 9
Views: 690

Re: Whole Life policy handed down - IRR?

Whole life policies are usually not a good deal. But, one that has been inforce for decades might be. The dividends might be greater than the premium or close to it. So, if you need the insurance it might be worth it?
by Dandy
Thu Feb 07, 2019 7:46 am
Forum: Personal Investments
Topic: CD investment decision
Replies: 55
Views: 4444

Re: CD investment decision

As others have mentioned you don't want to exceed the FDIC coverage. If you insist on a no risk CD approach you might want to look at having at least some of those CDs in say a Vanguard Brokerage account. That way you can pick CDs from different banks so you can not exceed the FDIC limits. Brokerage...
by Dandy
Tue Feb 05, 2019 9:32 pm
Forum: Personal Finance (Not Investing)
Topic: How much do you keep in checking?
Replies: 135
Views: 10300

Re: How much do you keep in checking?

I have pension and Social Security sent to an online Savings account currently paying 2.1%. 2X a month I have money moved from Savings to an interest bearing checking account paying 0.65%. I usually leave about $2k balance in the checking account. But money can be transferred instantly between Savin...
by Dandy
Tue Feb 05, 2019 3:16 pm
Forum: Personal Investments
Topic: Retirement Planning when you have more than required
Replies: 11
Views: 1236

Re: Retirement Planning when you have more than required

I roughly follow Dr. Wm Bernstein's idea for those who have enough of having 20 -25 years worth of drawdown in "safe" (my word) products. The rest invest anyway you want. This helped me in early retirement because I was having some trouble deciding from the top down if 60/40 was too aggressive or if...
by Dandy
Sat Feb 02, 2019 9:27 am
Forum: Personal Finance (Not Investing)
Topic: Incremental Savings of Keeping Car
Replies: 27
Views: 1882

Re: Incremental Savings of Keeping Car

What is often underestimated is the value of the newer car safety features. Avoiding accidents can save car repair expenses, car replacement expenses, car insurance expenses, medical costs, funeral expenses for surviving families. The old drive the car for 10 or more years was a frugal badge of hono...
by Dandy
Thu Jan 31, 2019 6:45 pm
Forum: Personal Finance (Not Investing)
Topic: Were you 100% debt free at retirement
Replies: 152
Views: 8540

Re: Were you 100% debt free at retirement

I was debt free. But, for large purchases like a new car I often used my HELOC account for some of the purchase so as not to drain a lot of my "safe" cash-like assets. I have pension and later SS at a decent level so paying down the HELOC happened rather quickly. That was when I could itemize and th...
by Dandy
Wed Jan 30, 2019 7:50 am
Forum: Investing - Theory, News & General
Topic: Opportunity Cost of [Holding] an Emergency Fund [in Cash/Bonds]
Replies: 60
Views: 3826

Re: Opportunity Cost of an Emergency Fund

Basically anything other that 100% equities results in an opportunity cost since equities, over the long term, are expected to significantly outperform any fixed income option. People seem to be overly focused on the drag that cash has on their portfolio whether that cash is an emergency fund or not...
by Dandy
Tue Jan 29, 2019 10:00 am
Forum: Personal Finance (Not Investing)
Topic: Balancing Investing & Life
Replies: 23
Views: 1427

Re: Balancing Investing & Life

I was always a saver--maybe on the cheap side of frugal. A mortgage and children put a lot of pressure on our expenses especially since I was the primary bread winner. I did realize that our children are only young once and that being to focused on saving/investing could be a problem. Our approach w...
by Dandy
Mon Jan 28, 2019 1:26 pm
Forum: Personal Finance (Not Investing)
Topic: Is health insurance still required at risk of penalty?
Replies: 22
Views: 1312

Re: Is health insurance still required at risk of penalty?

I think the current penalty is zero. That was a recent issue with the court saying the Affordable Care Act was unconstitutional which I believe has been blocked until further review. The real risk is that during that 2 months without coverage you get a condition that prevents you from getting reinsu...
by Dandy
Sun Jan 27, 2019 8:41 am
Forum: Investing - Theory, News & General
Topic: Retirement readiness checklist.
Replies: 43
Views: 3801

Re: Retirement readiness checklist.

1. How to cover medical expenses until Medicare 2. How to fund expenses to get SS at desired age 3. How much should you convert from TIRA to Roth 4. How will RMDs affect your tax bracket -- gets to issue of Roth conversions. 5. Most recommended TIRA should be fixed income heavy and Taxable should be...
by Dandy
Sun Jan 27, 2019 8:27 am
Forum: Investing - Theory, News & General
Topic: What did you learn from 2018 in the markets?
Replies: 104
Views: 5950

Re: What did you learn from 2018 in the markets?

Just reinforced that risk is in dollars not percentages and that a long bull market tends to dull the dollars at risk perception. Periodically, you need a reminder that your equity dollars can decline 50% several times in your investment lifetime. You can "know" this but still not fully appreciate i...
by Dandy
Wed Jan 23, 2019 8:53 am
Forum: Personal Finance (Not Investing)
Topic: What's your cash position
Replies: 148
Views: 16634

Re: What's your cash position

Cash is idle money.
What is idle about cash paying 2.3% or more? True it won't keep up with modest inflation but unless you have it in a brick bank earning 0.03% it really isn't idle. Agree that most people don't have to have tons of cash but a modest allocation to cash is fine.
by Dandy
Wed Jan 23, 2019 8:41 am
Forum: Personal Finance (Not Investing)
Topic: Reaching Severe Burnout - Can I Scale Back Career?
Replies: 64
Views: 11206

Re: Reaching Severe Burnout - Can I Scale Back Career?

I was in a similar situation for several years. We took over a function that was previously outsourced. Lots of stress, confusion, late nights, fear, etc. It really didn't settle down much after we took over. I vowed not to die at my desk or shoveling my driveway :happy and eventually lost that job....
by Dandy
Wed Jan 23, 2019 8:26 am
Forum: Personal Finance (Not Investing)
Topic: What's your cash position
Replies: 148
Views: 16634

Re: What's your cash position

About 9% - double that if you count a TIRA CD ladder. Retired almost 71 and roughly follow Dr. Wm. Bernstein's idea of having enough "safe" assets to fund retirement withdrawals to age 90. Since collecting SS at age 70 my withdrawal needs are now much less but decided to keep this approach, at least...
by Dandy
Mon Jan 21, 2019 8:21 am
Forum: Personal Investments
Topic: Saving accounts
Replies: 46
Views: 3539

Re: Saving accounts

You might be interested in Alliant Credit Union. They pay competitive rates on Savngs (2%+) and Checking 0.65%. No gotchas. I believe they have a feature where you can have multiple Savings accounts created easily. So you can label the 020 account Gifts, the 030 account Vacation etc. You can move mo...
by Dandy
Mon Jan 21, 2019 8:09 am
Forum: Personal Investments
Topic: Muni Bonds for large part of Bond allocation smart?
Replies: 32
Views: 3247

Re: Muni Bonds for large part of Bond allocation smart?

I favor having mostly fixed income in tax advantaged and mostly equities in taxable. I understand the desire to avoid taxes by having all muni bonds. I'd rather have some equities and maybe some Treasuries rather than 100% muni bonds. I'm just not comfortable with so many states having financial iss...
by Dandy
Sun Jan 20, 2019 9:12 am
Forum: Investing - Theory, News & General
Topic: Is using an Asset Allocation Mental Accounting?
Replies: 46
Views: 2136

Re: Is using an Asset Allocation Mental Accounting?

I wouldn't call it mental accounting -- more like potential mental numbness. Thinking mostly in terms of percentages to validate your risk tolerance can numb you to the dollar risks involved -- especially as your assets grow and/or your near retirement. We live in the world of dollars not percentage...
by Dandy
Mon Jan 14, 2019 11:20 am
Forum: Personal Finance (Not Investing)
Topic: What is/ was your career and would you recommend it now?
Replies: 408
Views: 42196

Re: What is/ was your career and would you recommend it now?

Right out of college I didn't know what job to apply for. A friend said XYZ is hiring for internal auditors. I applied and was hired. The plus of this job was getting to know all aspects of the company, their management and how all the pieces fit together. Most of the other departments and their man...
by Dandy
Fri Jan 11, 2019 1:38 pm
Forum: Investing - Theory, News & General
Topic: Vanguard explains the increase in ex-us allocation
Replies: 34
Views: 4669

Re: Vanguard explains the increase in ex-us allocation

I'm not buying that the cost of investing internationally has dropped from basically forget it to now you should have 40%. The possible advantage of having 40% international surely would have offset all but outrageous expense levels. Not commenting on the merits just the rationale.
by Dandy
Fri Jan 11, 2019 1:31 pm
Forum: Investing - Theory, News & General
Topic: SS/Pension/etc as bond allocation?
Replies: 25
Views: 1678

Re: SS/Pension/etc as bond allocation?

Did you count your salary as a bond? If you want to take more risk -- take it. Having a pension allows you to take a bit more risk if you desire. You don't need to convert an income stream into pseudo bond.
by Dandy
Thu Jan 10, 2019 8:43 am
Forum: Personal Investments
Topic: Monthly RMD from VG
Replies: 10
Views: 910

Re: Monthly RMD from VG

I would take the RMD proportionately. No need to fuss each month on where will I take my RMD from. Not suggesting set it and forget it but set it and keep an eye on it to make sure you stay close to your target allocation. If/when you find your allocation is getting out of hand -- then make a change.
by Dandy
Thu Jan 10, 2019 8:36 am
Forum: Personal Investments
Topic: AA Conundrum - Cash vs Bonds
Replies: 6
Views: 681

Re: AA Conundrum - Cash vs Bonds

I think of my fixed income in 3 categories: 1. No loss of principal - e.g. FDIC products, Money Market Funds, I bonds, EE bonds, Stable Value funds, Individual Treasury Bills, etc. The assumption is that they will be held to maturity. Their common quality is safety. 2. Short Term bond funds 3. Inter...
by Dandy
Tue Jan 08, 2019 11:07 am
Forum: Personal Investments
Topic: AA question about income required before age 70 SSI
Replies: 9
Views: 623

Re: AA question about income required before age 70 SSI

I don't want any cash sitting around not working for me. Cash and cash-like products don't do much heavy lifting but they always do some positive lifting. That is why in the old days, when cash was routinely paying a decent rate, allocations were quoted as stocks/bonds/cash. Cash allocation was usu...
by Dandy
Tue Jan 08, 2019 8:29 am
Forum: Personal Investments
Topic: Fixed Income-CDs, Brokered CDs, T-bonds & bills
Replies: 11
Views: 1215

Re: Fixed Income-CDs, Brokered CDs, T-bonds & bills

I think you have enough to focus on fixed income vs having any equities but think a small allocation to equities might still be a good idea. As far as fixed income I have 3 categories: No loss of principal (CD's, Online Savings, etc.), Short term bond funds, intermediate bond funds. We are currently...
by Dandy
Tue Jan 08, 2019 7:54 am
Forum: Personal Investments
Topic: AA question about income required before age 70 SSI
Replies: 9
Views: 623

Re: AA question about income required before age 70 SSI

I like cash for the money to bridge to SS at age 70. That could mean a CD's, money market, etc. I'm from the school that if you have enough why take too much risk. I see the retirement goal as making sure you have enough to last through a long retirement vs trying to continue to grow the nest egg by...
by Dandy
Mon Jan 07, 2019 5:53 pm
Forum: Personal Investments
Topic: Newly retired, new to you, seeking a plan we can trust
Replies: 15
Views: 2646

Re: Newly retired, new to you, seeking a plan we can trust

Based on a need of about $24k an year you seem to be in great financial shape. You don't need to take much risk. When I retired I couldn't decide what overall allocation was right for me. Was 40% equities too low, was 50% enough? etc. What worked for me was Dr. Wm Bernstein's idea of keeping 20-25 y...
by Dandy
Mon Jan 07, 2019 7:43 am
Forum: Investing - Theory, News & General
Topic: Total Investing Risk
Replies: 18
Views: 1470

Re: Total Investing Risk

One problem in determining risk is that allocations, market drops and risk tolerance are expressed in percents and losses are felt in dollars. A 10% drop in a million dollar portfolio doesn't sound too bad - the percentage is less than most of us tip at a restaurant. But $100,000 loss (real or paper...
by Dandy
Mon Jan 07, 2019 6:52 am
Forum: Personal Investments
Topic: Help with RMD and dividend reinvestment pleas
Replies: 2
Views: 370

Re: Help with RMD and dividend reinvestment pleas

I would consider having the RMD deducted proportionately from all funds. Use the money market to rebalance to make sure your overall allocation is ok. Since this will occur in your TIRA there are no tax implications.