Search found 5468 matches

by Dandy
Sun Dec 16, 2018 6:14 pm
Forum: Investing - Help with Personal Investments
Topic: Roth or Trad 401k - 24% bracket
Replies: 34
Views: 1110

Re: Roth or Trad 401k - 24% bracket

Retirement investing is a long term project as the average life is estimated to be 85. The power of compounding is amazing and often difficult to fully comprehend certainly by me. A person starting to invest at 25, retire at 65 and live to 85 has many asset management challenges. Most of us have jus...
by Dandy
Sun Dec 16, 2018 2:19 pm
Forum: Investing - Help with Personal Investments
Topic: Roth or Trad 401k - 24% bracket
Replies: 34
Views: 1110

Re: Roth or Trad 401k - 24% bracket

The problem with that if you start with Roth 401K, it will take longer for you to reach that 1 million. Then, you will switch to Trad. 401K much later. If you start out with a Roth 401k you will get to a million in the same time. The company match will be in the Traditional 401k and the rest will b...
by Dandy
Sun Dec 16, 2018 12:58 pm
Forum: Investing - Help with Personal Investments
Topic: Roth or Trad 401k - 24% bracket
Replies: 34
Views: 1110

Re: Roth or Trad 401k - 24% bracket

There is a trade off when you want vs need the tax advantage of the non Traditional 401k. In the early, usually lower earning years, money is often tight and you may want/need the tax deduction but your tax bracket is usually at a lower point. Later in the accumulation stage you are in a higher tax ...
by Dandy
Sun Dec 16, 2018 9:29 am
Forum: Investing - Help with Personal Investments
Topic: Roth or Trad 401k - 24% bracket
Replies: 34
Views: 1110

Re: Roth or Trad 401k - 24% bracket

A tough call -- valuable tax relief now early in your high earning career vs the lure of tax free withdrawals of a Roth. One factor I didn't fully anticipate was how my large TIRA would keep me in a high tax bracket when I began taking my RMDs. That and the recent tax law change will prevent me from...
by Dandy
Sat Dec 15, 2018 2:14 pm
Forum: Investing - Theory, News & General
Topic: AA for a Retiree being a Booglehead
Replies: 20
Views: 1519

Re: AA for a Retiree being a Booglehead

You should estimate your retirement living expenses and subtract estimated retirement income from Pension, social security, etc. The answer is the estimate of the dollars you will have to withdraw from your investments each year. The yearly draw down divided by your total investments will give you a...
by Dandy
Sat Dec 15, 2018 8:58 am
Forum: Investing - Theory, News & General
Topic: [Robinhood to offer 3% cash management program, not a bank account]
Replies: 160
Views: 9978

Re: [Robinhood to offer 3% cash management program, not a bank account]

Given that Robinhood was willing to jump the gun and claim SIPC coverage before finding out if the SIPC agreed, I think we can assume that Robinhood is aggressive and willing to take risks. +1 As I said I would approach this account with caution. The early bird gets the worm - the early worm gets e...
by Dandy
Fri Dec 14, 2018 8:47 am
Forum: Personal Finance (Not Investing)
Topic: What if you reach your number before retirement?
Replies: 22
Views: 2991

Re: What if you reach your number before retirement?

It is somewhat confusing that your number is 4 million but you can't retire at 69 with that number?? Anyhow I think it is a good idea to invest more conservatively as you approach and certainly when you exceed your number. Go from growth to asset preservation mode if you have your number and your hu...
by Dandy
Thu Dec 13, 2018 3:54 pm
Forum: Investing - Help with Personal Investments
Topic: Allocation when cost of living expenses covered
Replies: 23
Views: 1219

Re: Allocation when cost of living expenses covered

One thing to look at is what will be the income for each of you if the other passes and how that stacks up to expenses. One SS, reduced or no pension income?, annuity? tax filing single vs joint, etc. In our case my wife will lose her SS and 1/2 my pension income. I would lose only her much smaller ...
by Dandy
Thu Dec 13, 2018 3:36 pm
Forum: Investing - Theory, News & General
Topic: [Robinhood to offer 3% cash management program, not a bank account]
Replies: 160
Views: 9978

Re: Robinhood to launch 3% Checking & Savings Accounts

Interesting name for a financial services firm. :oops: I hope when you call you don't talk to Little John. :happy

I would approach this deal with caution.
by Dandy
Thu Dec 13, 2018 9:53 am
Forum: Investing - Theory, News & General
Topic: Our mentor [Jack Bogle] advises to "buy bonds" for protection in current market
Replies: 61
Views: 5843

Re: Our mentor [Jack Bogle] advises to "buy bonds" for protection in current market

Once again Mr. Bogle while saying stay the course he has, based on extreme valuations, not done so himself and now recommends investors consider adding more bonds due to risks ahead. He is much more flexible than many of his followers. I don't disagree with his "heads up" about bonds but if someone ...
by Dandy
Wed Dec 12, 2018 5:14 pm
Forum: Investing - Theory, News & General
Topic: Pitfalls of Backtesting
Replies: 4
Views: 316

Re: Pitfalls of Backtesting

A properly constructed back test is useful to determine what action might make sense going forward. The problem comes most into play when people assume it is an absolute green light. The future often mirrors some past trends and sometimes doesn't. To me it is a factor in making a decision but not th...
by Dandy
Wed Dec 12, 2018 10:12 am
Forum: Investing - Theory, News & General
Topic: What Happened to you during the Financial crisis of 2007–2008
Replies: 218
Views: 16219

Re: What Happened to you during the Financial crisis of 2007–2008

I'm always surprised that so many people mention credit cards and HELOC as emergency funds. They are at best a short term bridge to a real emergency fund. As noted sometimes the banks close the bridge.
by Dandy
Wed Dec 12, 2018 8:00 am
Forum: Investing - Theory, News & General
Topic: What Happened to you during the Financial crisis of 2007–2008
Replies: 218
Views: 16219

Re: What Happened to you during the Financial crisis of 2007–2008

what happened to you and your stocks and savings during the financial crisis of 2007–2008? Lost my job at age 60. My more than enough assets dropped to where I probably didn't have enough to fund a 30 year retirement. No jobs were available even entry level or part time. Impossible or very difficul...
by Dandy
Wed Dec 12, 2018 7:02 am
Forum: Investing - Help with Personal Investments
Topic: My PenFed 5 yr CDs are maturing
Replies: 35
Views: 2660

Re: My PenFed 5 yr CDs are maturing

If you have other accounts at PenFed it makes some sense. Direct CDs can be a bit of a hassle e.g. you get a limited time to make a decision at maturity or it renews at the bank's current rate -- which may or may not be competitive. If the bank you use decides not to offer competitive rates you need...
by Dandy
Tue Dec 11, 2018 8:32 am
Forum: Investing - Theory, News & General
Topic: Low need to take risk - decrease allocation to stocks?
Replies: 42
Views: 3115

Re: Low need to take risk - decrease allocation to stocks?

I am in a similar position in that I don't need to take investment risks. So, I chose the option of trying to secure my retirement funding first then deciding on how to allocate the rest of my assets. I roughly follow Dr. Wm Bernstein's idea of having 20 years worth of drawdown in "safe" fixed incom...
by Dandy
Tue Dec 11, 2018 8:11 am
Forum: Investing - Theory, News & General
Topic: US Treasuries vs Munis in taxable
Replies: 23
Views: 4077

Re: US Treasuries vs Munis in taxable

I am considering having a mix of US Treasuries and muni's rather than all muni's and keeping my muni's mostly in LTD Term Tax exempt. I don't have any special insight on the muni risks but not comfortable with having all my taxable fixed income "eggs" in that basket.
by Dandy
Mon Dec 10, 2018 11:29 am
Forum: Investing - Help with Personal Investments
Topic: Managing my own portfolio
Replies: 20
Views: 2252

Re: Managing my own portfolio

The 4% rule can be applied BLINDLY and it will work as advertised.
:oops:
by Dandy
Sun Dec 09, 2018 7:02 pm
Forum: Investing - Help with Personal Investments
Topic: Managing my own portfolio
Replies: 20
Views: 2252

Re: Managing my own portfolio

The 4% SWR is CONSERVATIVE.
MOST LIKELY BUT MAYBE NOT - The future doesn't have to look anything like the past. So, good to start with but be prepared to change rather than have blind faith and assume you can take 4% plus inflation indefinitely no matter what.
by Dandy
Sun Dec 09, 2018 12:32 pm
Forum: Investing - Help with Personal Investments
Topic: TIPS continue or quit?
Replies: 10
Views: 1044

Re: TIPS continue or quit?

I'm no expert on TIPs and the VG TIPS fund has low returns but isn't their purpose to be there for when there is unexpected inflation vs growth or yield? I'm 70 and have a decent allocation to the TIPS fund so I understand the concern. It seems best suited for those in retirement since inflation ove...
by Dandy
Sun Dec 09, 2018 9:15 am
Forum: Investing - Help with Personal Investments
Topic: Managing my own portfolio
Replies: 20
Views: 2252

Re: Managing my own portfolio

"...and survive indefinitely using the 4% rule. " The "safe withdrawal rate of 4%" can be misleading. I believe it is better thought of as a reasonable initial withdrawal rate . No withdrawal rate is set it and forget it. The 4% idea is based on past performance and was projected to last for 30 year...
by Dandy
Sat Dec 08, 2018 12:24 am
Forum: Investing - Help with Personal Investments
Topic: Pension vs Lump Sum payment
Replies: 8
Views: 1026

Re: Pension vs Lump Sum payment

The big risks in taking the pension that I would be concerned about are inflation and the company not being able to meet their pension obligation. The big risks in not taking the pension that I would be concerned about is mismanaging the lump sum and either running out of money or having to rely too...
by Dandy
Fri Dec 07, 2018 9:48 am
Forum: Investing - Help with Personal Investments
Topic: Managing my own portfolio
Replies: 20
Views: 2252

Re: Managing my own portfolio

5. What changes would you recommend to get to an 80/20 portfolio? Is 80/20 appropriate? The key to me is what is your number? You are adding close to 90k per year, which is great, but depending on your number you may get there or exceed it with a less aggressive allocation. I would suggest looking ...
by Dandy
Thu Dec 06, 2018 9:56 am
Forum: Investing - Help with Personal Investments
Topic: Retirement planning--how many years of cash equiv should I aim to have?
Replies: 16
Views: 2333

Re: Retirement planning--how many years of cash equiv should I aim to have?

Just a comment on "cash" being a drag on performance. It was more true a few years ago when interest rates were so low - remember Prime paying .01%? I think I do. - it is now paying a bit more than 2.3% vs Total Bond yield of 3.37 but YTD down 1.39% (not a big deal), and a 2 yr VG brokerage CD is pa...
by Dandy
Thu Dec 06, 2018 9:36 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard advisor suggesting 90/10
Replies: 41
Views: 3086

Re: Vanguard advisor suggesting 90/10

90/10 for a couple in their mid 30's is a bit aggressive. Seems to fit VG's idea of your risk tolerance rather than yours. If you don't have much investment savvy and/or time you might consider a balanced fund(s), TD or Life Strategy fund with a less aggressive allocation. Just make sure you decide ...
by Dandy
Thu Dec 06, 2018 9:20 am
Forum: Investing - Help with Personal Investments
Topic: Multi Account Re-balance Question
Replies: 11
Views: 606

Re: Multi Account Re-balance Question

I don't want growth in all accounts. I am doing Roth conversions piecemeal over the next few years and I would prefer that the source of the Roth conversions (tax-deferred accounts) have little growth, no growth, or even losses while the destination of the Roth conversions have tremendous growth an...
by Dandy
Thu Dec 06, 2018 8:20 am
Forum: Investing - Theory, News & General
Topic: Who else is getting excited? [about the market]
Replies: 145
Views: 12613

Re: Who else is getting excited?

Corrections are a buying opportunity and usually good for younger aggressive investors. If it turns out to be a black swan type of equity plunge that can be a different story. Companies fail, people lose jobs - even young aggressive investors. So, enjoy but be alert. In 2008 I worked for a large bro...
by Dandy
Thu Dec 06, 2018 8:06 am
Forum: Investing - Help with Personal Investments
Topic: Multi Account Re-balance Question
Replies: 11
Views: 606

Re: Multi Account Re-balance Question

Within reason I suggest have a bit of both equities and fixed income in all accounts. You usually want some growth in all accounts and an all fixed income account has little prospect for growth other than additional contributions.
by Dandy
Wed Dec 05, 2018 3:01 pm
Forum: Personal Finance (Not Investing)
Topic: Best online banking accounts?
Replies: 35
Views: 3492

Re: Best online banking accounts?

As a Vanguard Advantage Account holder I'm surprised that they have such little support. I wonder if they will discontinue it since they certainly don't promote it and make it hard to find on their web site. I like having check writing on the Fed Mondy market account. Awhile ago I was going to use i...
by Dandy
Wed Dec 05, 2018 8:22 am
Forum: Personal Finance (Not Investing)
Topic: Best online banking accounts?
Replies: 35
Views: 3492

Re: Best online banking accounts?

Check ratings and reviews on depositaccounts.com. I have used Ally, Discover, Alliant Credit Union and all have been great for Savings (all currently pay 2%), Alliant has a better checking account that pays 0.65% on all balances and has many other nice features e.g reimburses ATM fees up to $20/mont...
by Dandy
Wed Dec 05, 2018 8:09 am
Forum: Personal Finance (Not Investing)
Topic: Why Is Insurance Worth It (Analytically)?
Replies: 89
Views: 4229

Re: Why Is Insurance Worth It (Analytically)?

For most insurance, maybe all if you are lucky it is a losing deal. You pay premiums for home insurance and never have a fire, major theft etc. Pay for health insurance and all you get is an occasional cold. Never have more than a fender bender but paid all that auto insurance. I think most people t...
by Dandy
Wed Dec 05, 2018 7:40 am
Forum: Investing - Help with Personal Investments
Topic: Vang Wellesley for Retirement
Replies: 37
Views: 4293

Re: Vang Wellesley for Retirement

I use Balanced Index and Wellesley Income to account for all my TIRA equity exposure. I supplement that with various fixed income products to bring the overall allocation to the desired level. So far I like the arrangement.
by Dandy
Tue Dec 04, 2018 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: Life Advice (Financial + Health)
Replies: 17
Views: 1566

Re: Life Advice (Financial + Health)

I don't know what other job options you have that will give you decent income and less stress. But, I don't think it is a good idea to expose your body to that for very long. I swore that I wouldn't die slumped over my desk or my snow shovel. Glad that didn't happen -- yet (still have shovel exposur...
by Dandy
Tue Dec 04, 2018 11:07 am
Forum: Investing - Help with Personal Investments
Topic: Will we make it saving only in employer plans?
Replies: 58
Views: 4109

Re: Will we make it saving only in employer plans?

It seems a lot tougher to make ends meet than it used to. Of course we have more "toys" than we used to. I can't imagine when I started out paying for TV, computers, cell phones (just a land line with charges non local calls!). My daughters and their husbands all have decent jobs but have trouble ma...
by Dandy
Mon Dec 03, 2018 11:33 am
Forum: Investing - Help with Personal Investments
Topic: CD vs Bond ETF (SCHZ)
Replies: 1
Views: 244

Re: CD vs Bond ETF (SCHZ)

I think you understand both reasonably well. A bit more safe yield from the CD (I assume a brokerage CD) vs a slightly lower bond fund yield which has a chance to have it's value affect by defaults ( usually not a big deal in a "normal" bond fund like Total bond fund) and loss of value (temporarily)...
by Dandy
Sun Dec 02, 2018 10:20 am
Forum: Investing - Help with Personal Investments
Topic: What is the lowest 'safe' emergency fund we should have?
Replies: 40
Views: 3866

Re: What is the lowest 'safe' emergency fund we should have?

I''m surprised at the goal of having the lowest safe e fund. Even to the point of taking on credit card debt? You haven't discussed your financial picture/overall allocation but you seem to be doing very well. Having the "normal" 6-12 months worth of expenses would still be a good idea. With cash-li...
by Dandy
Sat Dec 01, 2018 5:32 pm
Forum: Investing - Help with Personal Investments
Topic: Help me understand money market mutual funds
Replies: 7
Views: 877

Re: Help me understand money market mutual funds

Vanguard Federal Money Market yields about 2.19% which is at the high end of what most online banks pay on their Savings. You can also get check writing but not FDIC. The risk is low especially since this particular fund invests in government issued debt not all necessarily backed by the full faith ...
by Dandy
Sat Dec 01, 2018 2:15 pm
Forum: Investing - Help with Personal Investments
Topic: Basic Bucket Theory
Replies: 40
Views: 3809

Re: Basic Bucket Theory

The point is that you could have gone 100% and been fine. Maybe, but that is an assumption based on prior asset performance and knowing our expenses in advance. Picking either 60/40 or 40/60 would be more reasonable choices for most people. Agree - most people take an educated guess at their risk t...
by Dandy
Sat Dec 01, 2018 11:03 am
Forum: Investing - Help with Personal Investments
Topic: Basic Bucket Theory
Replies: 40
Views: 3809

Re: Basic Bucket Theory

You had a hard time deciding because the choice didn't matter. With over 40x expenses, you can invest pretty much however you want. 100% stocks works. 100% bonds works. You just need to balance your desire for more money (and there are very few people that don't want more money. How many people do ...
by Dandy
Sat Dec 01, 2018 7:45 am
Forum: Investing - Help with Personal Investments
Topic: Basic Bucket Theory
Replies: 40
Views: 3809

Re: Basic Bucket Theory

I like Dr. Wm Bernstein's idea of having 20-25 years of withdrawals in "safe" products (my term) and the rest invest anyway you want. This was suggested for retirees that had "enough" assets. In retirement I had a hard time deciding what overall allocation was right for us. Was 40/60 too conservativ...
by Dandy
Thu Nov 29, 2018 5:25 pm
Forum: Investing - Help with Personal Investments
Topic: Father seeking advice: how to support?
Replies: 9
Views: 1245

Re: Father seeking advice: how to support?

It is tough but I think if he is too trusting and declined coming to this forum then you probably need to go with him to the fee only financial adviser. Two head are better than one. You can get some information delay a decision and ask question to this forum for some suggestions. Lots of work but I...
by Dandy
Thu Nov 29, 2018 5:15 pm
Forum: Investing - Help with Personal Investments
Topic: When to cash in EE Savings Bonds
Replies: 16
Views: 1624

Re: When to cash in EE Savings Bonds

Go on Treasury Direct to see what the bonds are worth and what interest rate it is earning. Cashing in paper bonds can be a bit of a hassle. If you are not cashing them in the immediately and/or if it is a hassle to cash them, put them online at Treasury Direct. You can specify a bank or 2 and then ...
by Dandy
Wed Nov 28, 2018 2:08 pm
Forum: Investing - Help with Personal Investments
Topic: Pay extra into mortgage or invest, considering Trump's tax plan ?
Replies: 29
Views: 2244

Re: Pay extra into mortgage or invest, considering Trump's tax plan ?

I would allocation some to each effort. Maybe 1/3 to mortgage reduction and 2/3 to investments. You said you are somewhat behind investing. I would not try to be overly aggressive to try to make that up. A very good savings rate and a moderate investment allocation should be fine.
by Dandy
Mon Nov 26, 2018 7:34 am
Forum: Investing - Theory, News & General
Topic: What to track/manage: Spending vs Saving
Replies: 10
Views: 1020

Re: What to track/manage: Spending vs Saving

I try to focus on knowing my true run rate. By that I mean my normal expenses. So, I exclude large one time expenses. What you want to get at is ongoing expense creep e.g. eating out more, taxes, insurance, gifts, ATM withdrawals etc. That tells me whether rising expenses are built in vs one time. I...
by Dandy
Mon Nov 26, 2018 7:00 am
Forum: Investing - Help with Personal Investments
Topic: Hold bonds in taxable or tax-deferred accounts? I am confused
Replies: 23
Views: 4907

Re: Hold bonds in taxable or tax-deferred accounts? I am confused

I think the idea of fixed income in tax advantaged and equities in taxable generally makes sense. I would suggest that having a tax advantaged allocation of say, 20/80 and a taxable allocation of 80/20 is something to consider. I use the term fixed income vs bonds/bond funds. You need to keep in min...
by Dandy
Mon Nov 26, 2018 6:13 am
Forum: Investing - Help with Personal Investments
Topic: Am I too risk averse?
Replies: 45
Views: 3367

Re: Am I too risk averse?

Hi Bogleheads, I’m in my late forties, I have about $3.5M in taxable and my current asset allocation looks like this: 32% Treasury bills 28% Stocks 18% CDs 7% Checking & Savings 5% Money market 5% Municipal bonds 5% TIPS On one hand, I realize it’s a very conservative portfolio, and I definitely do...
by Dandy
Sun Nov 25, 2018 4:33 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review Request
Replies: 16
Views: 1565

Re: Portfolio Review Request

By my count you have 24 funds. Hard to keep track/balance etc so many different and possibly overlapping funds. For all the tax advantaged accounts you may be able to get the same result with fewer funds. Each account may not have the desired allocation but overall you might be ok. Some accounts hav...
by Dandy
Sun Nov 25, 2018 1:29 pm
Forum: Investing - Theory, News & General
Topic: Using Short-Term Bonds for my future housing payment fund (3-5 years out)?
Replies: 5
Views: 422

Re: Using Short-Term Bonds for my future housing payment fund (3-5 years out)?

I like the Ltd term tax exempt with a current 2.22% yield or the short term treasury index fund with a 2.80% current yield. I'd like to get some tax help in the taxable account if that make sense to you. You might also consider a VG brokerage CD - the 3 year is yielding 3.10%. (if you go with the br...
by Dandy
Sun Nov 25, 2018 11:18 am
Forum: Investing - Help with Personal Investments
Topic: New to investing, how would I select appropriate bonds?
Replies: 19
Views: 1508

Re: New to investing, how would I select appropriate bonds?

Bonds and bond funds seem simple but they can be a bit tricky. Except for Treasuries which come with a Federal Government guarantee the key risk of bonds is default i.e. the issuer can't pay you when the bond matures. Most bond funds invest in a variety of issuers to mitigate against that risk. So,...
by Dandy
Sun Nov 25, 2018 11:04 am
Forum: Personal Finance (Not Investing)
Topic: HSBC online savings; comments?
Replies: 14
Views: 1443

Re: HSBC online savings; comments?

most of the big brick banks offer horrible service/treatment of existing customers. Many online banks offer a better experience. Though you have to be careful with all banks and credit unions since many have "gotchas" that are hard to spot until they "gotcha". BofA 5yr CD pays .75% vs Ally 3.10% Cha...
by Dandy
Sun Nov 25, 2018 10:07 am
Forum: Investing - Theory, News & General
Topic: You’re Not As Rich As You Think You Are, And That’s Okay
Replies: 20
Views: 6030

Re: You’re Not As Rich As You Think You Are, And That’s Okay

In retirement with the loss of human capital your portfolio is what it is but you start to think it is more stable than it is especially after a record bull market. This can lead to making questionable decisions. One way to look at it would be to see what your portfolio would be less 50% of equities...