Search found 5109 matches

by Dandy
Tue Jun 19, 2018 8:15 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 6639
Views: 1433874

Re: Anyone buying today?

My guess is the market is reacting to tariff war concerns. Lots of bluster and threats and some tariff increases. Don't see how this won't get "worse" since nations have their economies and pride at stake. So, today might be the first of a serial decline -- or not. I have no problem with people who ...
by Dandy
Tue Jun 19, 2018 8:03 am
Forum: Investing - Help with Personal Investments
Topic: Retire at 50: Should I?
Replies: 71
Views: 8001

Re: Retire at 50: Should I?

I think you need to take a look at your allocation. No pension, no SS for a long time, buy health insurance, fund retirement longer than you have worked. How would you fare if/when the equity market takes a big hit and stays down for a few years while you are withdrawing? Do you have skills that you...
by Dandy
Tue Jun 19, 2018 7:44 am
Forum: Investing - Help with Personal Investments
Topic: CD or Bonds?
Replies: 6
Views: 716

Re: CD or Bonds?

I like diversity in fixed income so having both bond funds and CDs makes sense to me. I currently I would lean to adding shorter term CDs e.g. 2 yrs rather than add to bond funds. But, remember the bond funds will recover as they replace older lower interest bonds with newer higher interest bonds. U...
by Dandy
Tue Jun 19, 2018 7:11 am
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation for a 26 year old?
Replies: 15
Views: 1257

Re: Asset Allocation for a 26 year old?

It looks as if the future is bright but it isn't quite there yet. Until you start you medical practice what you have is potential and debt. In a few years you probably will have a much better financial position. Actual risk tolerance is very hard to determine especially at age 26 during a long equit...
by Dandy
Mon Jun 18, 2018 9:58 am
Forum: Investing - Theory, News & General
Topic: You Can Market Time At Valuation Extremes
Replies: 36
Views: 3903

Re: You Can Market Time At Valuation Extremes

The problem with market timing at valuation extremes are the "being right too early" problem that I posted about earlier and also the definition of "extreme valuations." First I am not making any case the current markets are overvalued or extremely overvalued. Just that the topic needs to be explor...
by Dandy
Mon Jun 18, 2018 8:39 am
Forum: Investing - Theory, News & General
Topic: You Can Market Time At Valuation Extremes
Replies: 36
Views: 3903

Re: You Can Market Time At Valuation Extremes

thanks for the information. Don't you think Mr. Bogle should address in some detail what Bogleheads should do to determine extreme valuation and actions that should be considered? After all extreme valuation should be somewhat rare and the impact on equity assets when the "reversion to the mean" are...
by Dandy
Mon Jun 18, 2018 7:51 am
Forum: Investing - Theory, News & General
Topic: You Can Market Time At Valuation Extremes
Replies: 36
Views: 3903

Re: You Can Market Time At Valuation Extremes

Mr. Bogle says you can/should? He did around the 2000 meltdown. He cut back his equity allocation significantly. Around 2013 when the market was up 30% or so he reaffirmed the idea of taking action during extreme valuations -- but said at that time the equity market wasn't extremely overvalued. I do...
by Dandy
Sat Jun 16, 2018 4:54 pm
Forum: Personal Finance (Not Investing)
Topic: Tracking spending before retirement useful for estimating retirement expenses?
Replies: 72
Views: 3960

Re: Tracking spending before retirement useful for estimating retirement expenses?

For most tracking monthly expenses while working is a good start to estimating retirement expenses. A big surprise can be health/dental expenses. While my company health insurance pretty much was the same --the loss of dental insurance was an expense surprise. I have a good dental history but the co...
by Dandy
Sat Jun 16, 2018 9:42 am
Forum: Investing - Help with Personal Investments
Topic: Should fixed income allocation necessarily change over the years?
Replies: 11
Views: 662

Re: Should fixed income allocation necessarily change over the years?

A lot depends on your retirement expenses and retirement income. If you don't need much withdrawals from your nest egg to cover "normal" retirement lifestyle than a more aggressive investment allocation won't be as risky to your retirement. Lots of changes for most people. No salary, bonus, contribu...
by Dandy
Fri Jun 15, 2018 8:15 pm
Forum: Investing - Theory, News & General
Topic: Flaw in Logic? CD ladder instead of bond funds
Replies: 63
Views: 4470

Re: Flaw in Logic? CD ladder instead of bond funds

Why all or nothing. Each fixed income product has certain pros and cons. e.g. Bond funds have better liquidity -- for emergencies or rebalancing for example. CDs have a known interest rate and maturity date and a government guarantee but are less liquid. A short term Treasury fund avoids state incom...
by Dandy
Fri Jun 15, 2018 6:45 pm
Forum: Personal Finance (Not Investing)
Topic: Timeshare ever worth it? Please share details
Replies: 121
Views: 9638

Re: Timeshare ever worth it? Please share details

I have no actual experience in buying one but have friends that did an regret it. Things that didn't make me want to buy 1. the sales pitch - anything that good doesn't need that high pressure sales 2. No matter how much you like the location/deal never wanted to commit to decades of vacationing in ...
by Dandy
Fri Jun 15, 2018 6:28 pm
Forum: Investing - Theory, News & General
Topic: Which boglehead rule do you break--and are ok with
Replies: 151
Views: 10815

Re: Which boglehead rule do you break--and are ok with

1 :happy Develop a workable plan 2 :happy Invest early and often 3 :happy Never bear too much or too little risk 4 :happy Diversify 5 ?Never try to time the market (will on occasion buy on really bad days within my equity target range) 6 :happy Use index funds when possible 7 :happy Keep costs low 8...
by Dandy
Fri Jun 15, 2018 6:13 pm
Forum: Investing - Theory, News & General
Topic: Are Bogleheads smarter than the bond market?
Replies: 40
Views: 4065

Re: Are Bogleheads smarter than the bond market?

i don't know about smarter but it is somewhat elementary that longer duration bonds do better when interest rates are declining and shorter duration bonds do better when rates are rising. The Fed has been pretty clear for awhile that they are bent on raising rates gradually for the next 12 - 18 mont...
by Dandy
Tue Jun 12, 2018 10:41 am
Forum: Personal Consumer Issues
Topic: At what point to buy new car for safety
Replies: 94
Views: 9292

Re: At what point to buy new car for safety

There has been a lot of discussion about new safety features and auto deaths. I don't think that is the main point. Avoiding death and injury for you and family is of course important but probably not the critical selling feature. Avoiding accidents and the repair/insurance costs/ hassles, time with...
by Dandy
Tue Jun 12, 2018 7:28 am
Forum: Personal Finance (Not Investing)
Topic: Allowance [Giving allowance to child]
Replies: 28
Views: 2166

Re: Allowance [Giving allowance to child]

As a kid I had some chores and got a small allowance. The chores were not directly tied to the allowance they were obligations for being part of the family. At an early age mom took me to the bank and opened a passbook savings account so I could deposit some of my gift money (birthdays, etc). They a...
by Dandy
Tue Jun 12, 2018 5:38 am
Forum: Personal Consumer Issues
Topic: At what point to buy new car for safety
Replies: 94
Views: 9292

Re: At what point to buy new car for safety

If you can afford it go for a safer car. Not necessarily a new car. Many 2 or 3 year old cars have nice safety features especially compared to one 10 years old. But, many new cars have amazing safety features. I think the old frugal drive the car until it dies or gets 200k miles is out of date -- fo...
by Dandy
Mon Jun 11, 2018 10:34 am
Forum: Investing - Help with Personal Investments
Topic: Investing when someone else gets all dividends
Replies: 80
Views: 4741

Re: Investing when someone else gets all dividends

Why not Wellesley Income Fund. 3.21% current yield and a nice track record. Should provide a decent level of income and some appreciation for modest growth. The current yield is comparable to a 5 yr CD. Or you could consider a CD ladder for all or some of the amount. It will provide decent income an...
by Dandy
Mon Jun 11, 2018 10:09 am
Forum: Investing - Help with Personal Investments
Topic: What to do with individuals stocks?
Replies: 15
Views: 916

Re: What to do with individuals stocks?

Why hold on so dearly to a strategy you no longer believe in? +1 You are right to be somewhat concerned about taxes. I would exit the riskier stocks first and partially offset that with the one that is carrying capital loss. If that creates too much taxes for this year - you could wait to sell the ...
by Dandy
Mon Jun 11, 2018 10:02 am
Forum: Investing - Help with Personal Investments
Topic: Strategy for a prolonged bear market
Replies: 65
Views: 5369

Re: Strategy for a prolonged bear market

Here are two "strategies" I've used: In 2008-9 I stopped pouring more money into equities after my nest egg reduction reached a certain threshold. I waited until the market recovered to that threshold or a bit more before continuing to buy equities. Note - I was just retired in April of 2008 - not t...
by Dandy
Mon Jun 11, 2018 7:42 am
Forum: Investing - Help with Personal Investments
Topic: Annuity/Pension subsitutes for portfolio
Replies: 31
Views: 2533

Re: Annuity/Pension subsitutes for portfolio

The problem with annuities is that they are not federally guaranteed. In fact they are not strictly speaking even state guaranteed. They are backed by state guarantee funds that will be funded after the fact by assessments on other insurance companies operating in the state. And even that coverGe i...
by Dandy
Sun Jun 10, 2018 9:41 pm
Forum: Personal Finance (Not Investing)
Topic: [Net worth in retirement: How do you know when "enough is enough"?]
Replies: 15
Views: 2615

Re: [Net worth in retirement: How do you know when "enough is enough"?]

life is short, health is a gift but doesn't always last long. These are great years - you have money, relatively good health, a job you like and it seems like close family. How do you want to spend the next part of your life? Living below your means is a lifestyle that helped you get a fortune. It d...
by Dandy
Sun Jun 10, 2018 7:51 am
Forum: Investing - Theory, News & General
Topic: Rising Interest Rate Strategy
Replies: 35
Views: 4020

Re: Rising Interest Rate Strategy

Age 70 with asset preservation goal. I have my fixed income (57%) allocated roughly 1/3 no loss of principal products, 1/3 short term bond funds and 1/3 intermediate bond funds. That somewhat tempers the impact of rate changes. I don't overly fuss about making sure each category is exactly 1/3 so I ...
by Dandy
Sat Jun 09, 2018 5:28 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a house in Florida but you are hundreds of miles away
Replies: 33
Views: 2703

Re: Buying a house in Florida but you are hundreds of miles away

hey should rent a place for 6 months to a year before buying to make sure they like the location. Living in Florida isn't for everyone. +1 My parents did many many years ago because they couldn't afford to live in the NY metro area. They adapted. Many others tried but couldn't adjust. North Florida...
by Dandy
Sat Jun 09, 2018 6:57 am
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation 53 years old
Replies: 21
Views: 1719

Re: Asset Allocation 53 years old

I don't think you need that aggressive allocation to reach your goal. I would dial back especially given we are in the midst of a very long bull market. I think 60/40 would be plenty aggressive. As you age and your assets dramatically increase I think there should be a shift from growth to preservat...
by Dandy
Fri Jun 08, 2018 7:41 am
Forum: Investing - Help with Personal Investments
Topic: Bond Funds
Replies: 7
Views: 766

Re: Bond Funds

Vanguard is offering a 5yr CD at 3.3% and a 3 yr CD at 3%. These are brokerage CDs that will pay you back all your investment if you hold them to maturity. If you want to sell them early you take market risk. The Fed is likely to announce a rate increase next week which may raise these and other rat...
by Dandy
Thu Jun 07, 2018 6:20 am
Forum: Investing - Help with Personal Investments
Topic: Fixed Income investments too conservative?
Replies: 59
Views: 3703

Re: Fixed Income investments too conservative?

You seem to have more than enough so for me that argues for asset preservation vs growth/more risk. I am 70 and am in much the same situation vis a vis having enough assets. I roughly follow Dr. Bernstein's idea of having 20 years worth of draw down money in "safe" products. I have about 1/3 of my f...
by Dandy
Wed Jun 06, 2018 6:07 pm
Forum: Investing - Help with Personal Investments
Topic: Beginner retirement portfolio question.
Replies: 15
Views: 968

Re: Beginner retirement portfolio question.

New baby, new stay at home mom, new? house, 6 months E fund, thinking of 100% stock allocation. I'd say whoa. Lots of unanticipated expenses with homes/babies, used to 2 incomes now only one and we have had an 8 year bullish equity market that lulls people into the real equity risks. It is great tha...
by Dandy
Wed Jun 06, 2018 7:55 am
Forum: Investing - Help with Personal Investments
Topic: pension
Replies: 12
Views: 1420

Re: pension

Pensions, annuities, salaries, social security etc. are income streams. They reduce the need to withdraw money to meet expenses. They allow you to take more risk in your investments if you want -- but you don't have to. No need to count them as part of your investment fixed income. Keep it simple, b...
by Dandy
Mon Jun 04, 2018 4:17 pm
Forum: Investing - Help with Personal Investments
Topic: [what to sell for] RMD
Replies: 21
Views: 1388

Re: [what to sell for] RMD

Great convenience. You can rebalance in the taxable account as well as the TIRA to minimize timing issues. How early in the year do they do this? As soon as they Dec. 31 figures can be calculated? And do they help with withholding tax? 1. I try not to use the taxable account to rebalance to avoid un...
by Dandy
Mon Jun 04, 2018 6:44 am
Forum: Personal Finance (Not Investing)
Topic: The high probability of low-probability events
Replies: 6
Views: 817

Re: The high probability of low-probability events

Interesting way of looking at risk. Recently, a town in Maryland had a 1000 year flood for the second year in a row. This year a tree limb fell on my car in my driveway causing $9500 worth of damage. I've lived in this house for 44 years. In 2008 a mortgage crisis cost me a job in a mutual fund subs...
by Dandy
Mon Jun 04, 2018 6:18 am
Forum: Investing - Help with Personal Investments
Topic: [what to sell for] RMD
Replies: 21
Views: 1388

Re: [what to sell for] RMD

I had my first RMD this year. I decided to have VG take the RMD proportionately from my several TIRA funds. In my TIRA I have a large CD ladder using VG brokerage CDs. VG will ignore non fund assets when they take a proportionate RMD. I decided that after VG takes the RMD I will review my TIRA and r...
by Dandy
Mon Jun 04, 2018 6:02 am
Forum: Investing - Help with Personal Investments
Topic: What are you doing with cash?
Replies: 82
Views: 9703

Re: What are you doing with cash?

I'm retired age 70 and have a nice nest egg invested conservatively. I roughly follow Dr. Bernstein's idea of having 20-25 years of "safe" assets. For me that is CDs, Savings Accounts, Money Market funds/deposit accounts, some legacy EE bonds. as well as short term bond funds. So fixed income is abo...
by Dandy
Sun Jun 03, 2018 6:03 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard platform
Replies: 23
Views: 2200

Re: Vanguard platform

my TIRA and joint account switched. One difference was in the joint account under the old platform you could have Federal and state taxes withheld on distributions (to avoid or limit estimated taxes for example). When they switched in mid year that option is not available for brokerage accounts and ...
by Dandy
Sun Jun 03, 2018 5:52 pm
Forum: Investing - Help with Personal Investments
Topic: Are we doing it right?
Replies: 15
Views: 2534

Re: Are we doing it right?

Good for you -- no debt and maxing out savings. Tax Managed Balanced is a very good fund but not often mentioned. I think most would rather invest in taxable 50% in Total Stock Market and 50% in Intermediate Tax Free Bond fund in case there is a chance to tax loss harvest or to do rebalancing. But, ...
by Dandy
Sun Jun 03, 2018 9:47 am
Forum: Investing - Help with Personal Investments
Topic: Learning One’s Risk Tolerance
Replies: 5
Views: 595

Re: Learning One’s Risk Tolerance

At age 35 your allocation seems reasonable and glad it helps you not panic. To me the real test of risk tolerance is the dollars at risk. As your human capital fades the ability to make up lost dollars declines i.e. fewer or no contributions, bonuses, company matches, etc. So, I don't take much comf...
by Dandy
Sun Jun 03, 2018 9:28 am
Forum: Investing - Help with Personal Investments
Topic: Bonds in Roth IRA
Replies: 24
Views: 1485

Re: Bonds in Roth IRA

I favor a mix of equities and fixed income in almost all type of accounts even Roth. In an TIRA only a modest allocation to equities, in a Roth and taxable only a modest allocation to fixed income. (mostly muni's in taxable if that makes sense tax wise). In your case I wonder why a short term bond f...
by Dandy
Sun Jun 03, 2018 8:53 am
Forum: Investing - Help with Personal Investments
Topic: Need some direction: 5K payout in July....towards loans or Roth?
Replies: 18
Views: 938

Re: Need some direction: 5K payout in July....towards loans or Roth?

Pay off the highest interest rate loans first. You have 3 loans with over 6% interest you can pay off the top two with less than 5k. The extra and the monthly money freed up should go toward the last 6%+ loan. When all three of the 6% loans are freed up you can think about some $$ toward a Roth whil...
by Dandy
Sun Jun 03, 2018 6:06 am
Forum: Investing - Help with Personal Investments
Topic: Helping son buy a house
Replies: 33
Views: 2968

Re: Helping son buy a house

I like the idea of gifting the downpayment but I think the idea of him owning vs renting could be looked at. For a single person who might not like rising rents from an affordability standpoint home ownership is often way more expensive. Insurance, taxes, landscaping, repairs, more expensive heating...
by Dandy
Sat Jun 02, 2018 2:27 pm
Forum: Personal Finance (Not Investing)
Topic: Best Advice You Never Took
Replies: 100
Views: 13424

Re: Best Advice You Never Took

when I was just starting my career and interest rates were soaring an old timer said he was loading up on 30 Year Treasuries for himself and his grandkids. I forget what the rate was then but it was, i believe in the high teen digits or better. When rates are rising (a bit like now but it was more r...
by Dandy
Thu May 31, 2018 7:28 am
Forum: Investing - Help with Personal Investments
Topic: Relationship between Living Off of Dividends and Maximizing Yield
Replies: 13
Views: 976

Re: Relationship between Living Off of Dividends and Maximizing Yield

My understanding is that you are looking for higher fixed income dividends vs stock dividends. If that is true and you are looking for those higher dividends in a taxable account, the major concerns are taxes and reaching for yields can tempt you to buy riskier assets. Risks might be in default or g...
by Dandy
Wed May 30, 2018 8:37 am
Forum: Investing - Theory, News & General
Topic: To be or not to be complex, that is the question
Replies: 146
Views: 11664

Re: To be or not to be complex, that is the question

I have no problem with people who choose simplicity. I think it is sometimes overstated as to how difficult it is to manage a portfolio that is a bit more "complex". To me the equity side of the allocation is easy -- basically Total US and Total International seems to fill the bill. On the fixed inc...
by Dandy
Tue May 29, 2018 6:14 pm
Forum: Investing - Theory, News & General
Topic: Bernstein - CD + Treasuries + Munis VS Vanguard Total Bond ??
Replies: 14
Views: 2009

Re: Bernstein - CD + Treasuries + Munis VS Vanguard Total Bond ??

No retirement investing/withdrawing approach is without risk when you are trying to project over a decade or two. Retirement "normal" run rate expenses often decrease in time as they stop traveling as much etc. of course for many increased health care related expenses can increase or spike dramatica...
by Dandy
Tue May 29, 2018 1:08 pm
Forum: Investing - Theory, News & General
Topic: Bernstein - CD + Treasuries + Munis VS Vanguard Total Bond ??
Replies: 14
Views: 2009

Re: Bernstein - CD + Treasuries + Munis VS Vanguard Total Bond ??

I roughly follow Bernstein's idea of having 20 years worth of drawdown (aka residual expenses) in "safe" investments. Since reaching 70 and collecting full SS I need less drawdown. But, since my pension will drop 50% for my widow and she will also not get her SS anymore (cause she will use mine whic...
by Dandy
Mon May 28, 2018 6:26 am
Forum: Personal Finance (Not Investing)
Topic: Lump sum versus annuity - could use your insight.
Replies: 18
Views: 2234

Re: Lump sum versus annuity - could use your insight.

I usually opt for the annuity or pension. You have decent assets so the lump sum is not "needed". You can have a high level of income for you and spouse that will last a life time and assets to leave to heirs. I like to off load some of the money management to pension/annuity providers rather than h...
by Dandy
Sun May 27, 2018 9:01 pm
Forum: Investing - Help with Personal Investments
Topic: Does anticipated SS alter today’s allocation?
Replies: 20
Views: 1855

Re: Does anticipated SS alter today’s allocation?

I never count my chickens - I'm aware of them and happy about them but wait until they actually hatch. That goes for Social Security, Pension, inheritance, bonus, tax refunds, ... I would modify my equity allocation to moderate as I approached my number or retirement. As human capital declines the a...
by Dandy
Sun May 27, 2018 4:58 pm
Forum: Personal Finance (Not Investing)
Topic: Helping Adult Children (but not too much)
Replies: 152
Views: 12423

Re: Helping Adult Children (but not too much)

Wow the possible end of the individualism and drive that made America great is pretty serious. I agree that creating generations of spoiled, pampered children will not end well. So, we should take care that good intentions don't get out of hand. I'm not for distribution of money to spoiled kids or t...
by Dandy
Sun May 27, 2018 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: Helping Adult Children (but not too much)
Replies: 152
Views: 12423

Re: Helping Adult Children (but not too much)

My siblings and I all graduated from college with no debt and made our own way. I don't see that much has changed in the last 30-40 years to make doing the same any harder for our kids. Well if you go back about 50 years I worked in the summer at not much above minimum wages and could pay my tuitio...
by Dandy
Sun May 27, 2018 1:34 pm
Forum: Investing - Theory, News & General
Topic: Renting vs Owning Your Home
Replies: 166
Views: 13322

Re: Renting vs Owning Your Home

I disagree. This is a killing. You likely financed 80-100% of this home 44 years ago. And you haven’t had to pay rent the entire time. You made a killing. Don't misunderstand I am glad I bought the house. Two comparisons one is a house as an investment. a 5+% return compared to a moderately aggress...
by Dandy
Sun May 27, 2018 11:51 am
Forum: Personal Finance (Not Investing)
Topic: Helping Adult Children (but not too much)
Replies: 152
Views: 12423

Re: Helping Adult Children (but not too much)

Dandy, 1) How does that compare with 5K per month allowance to the kids in the 20s while they are in the graduate school? That wouldn't be my choice unless the money was used for room and board etc. Not likely to provide an income but to address reasonable expense needs while attending Grad School ...
by Dandy
Sun May 27, 2018 11:07 am
Forum: Personal Finance (Not Investing)
Topic: Helping Adult Children (but not too much)
Replies: 152
Views: 12423

Re: Helping Adult Children (but not too much)

I am just giving you a different perspective on the prospect of the current generation. Appreciate the comment. Not everyone's experience is the same. My father's mother died soon after he was born. His father was born with one arm and couldn't or didn't choose to raise his 6 children upon her deat...