Search found 52 matches

by Rick_J-
Wed Jun 13, 2012 11:14 pm
Forum: Investing - Theory, News & General
Topic: Vanguard study looks at ways to spend retirement savings
Replies: 8
Views: 2495

Re: Vanguard study looks at ways to spend retirement savings

Nisiprius, I understand what you are saying and perhaps one of the best spending rules during the accumulation phase is the one mentioned by Dickens and captured below your signature. Personally, I am in my accumulation phase and simply try to save as much as I can while still spending money on expe...
by Rick_J-
Wed Jun 13, 2012 6:41 pm
Forum: Investing - Theory, News & General
Topic: Vanguard study looks at ways to spend retirement savings
Replies: 8
Views: 2495

Re: Vanguard study looks at ways to spend retirement savings

Thanks for the response. So does that mean that because in the first year of the study the spending amount was $47,500 then the following year you would spend between $46,312 and $49,875 regardless of portfolio performance ?
by Rick_J-
Wed Jun 13, 2012 6:21 pm
Forum: Investing - Theory, News & General
Topic: Vanguard study looks at ways to spend retirement savings
Replies: 8
Views: 2495

Re: Vanguard study looks at ways to spend retirement savings

I am came across this Vanguard study when Taylor Larimore recently posted a link to Christine Benz's morningstar article here: http://news.morningstar.com/articlenet/article.aspx?id=556353&part=1 After reading the vanguard article I am confused by the meaning of the following: As in the percentage o...
by Rick_J-
Mon May 28, 2012 6:04 pm
Forum: Investing - Theory, News & General
Topic: Canadian article: Why isn’t everyone beating the market?
Replies: 45
Views: 3168

Re: Canadian article: Why isn’t everyone beating the market?

lately I've been thinking about starting a third leg, in a Canadian tax free portfolio that's now 100% invested in a high yield savings account making only 1.40% in interest. Stryker, I am a Canadian investor as well, you may want to check out People Trust Tax Free Saving Account yielding 3% which ...
by Rick_J-
Tue May 22, 2012 8:34 pm
Forum: Investing - Help with Personal Investments
Topic: Choosing between CDs and Bond ETF
Replies: 4
Views: 1249

Re: Choosing between CDs and Bond ETF

Thank you all for your input it is much appreciated. I have shared this thread with them and after doing a little more research I found 2,3,4,5 year Canadian CDs yielding 2.5, 2.75, 3, 3.25 respectively. Each year increase in term is 25 basis points increase and 5 years is the limit for government i...
by Rick_J-
Sun May 20, 2012 9:32 pm
Forum: Investing - Help with Personal Investments
Topic: Choosing between CDs and Bond ETF
Replies: 4
Views: 1249

Choosing between CDs and Bond ETF

As someone who believes in the bogelhead principles I am torn in the advice I should give my parents about their fixed income portfolio. We are Canadians so the yields I am about to quote relate to Canadian Bond ETFs and Canadian bank issued CDs which are called GIC, but have the equivalent of FDIC ...
by Rick_J-
Sun Mar 18, 2012 9:59 am
Forum: Investing - Theory, News & General
Topic: Should Asset Alloc be dif betw Tax and Tax shelt. accts
Replies: 10
Views: 550

Re: Should Asset Alloc be dif betw Tax and Tax shelt. accts

I agree with all the responses above. The wiki contains this link if you want to adjust your various accounts to their after tax value so you can achieve your desired asset allocation across all accounts.

http://www.bogleheads.org/wiki/Tax-Adju ... Allocation
by Rick_J-
Fri Feb 17, 2012 8:59 pm
Forum: Investing - Theory, News & General
Topic: Do you "duration adjust" your bond allocation?
Replies: 29
Views: 2445

Re: Do you "duration adjust" your bond allocation?

I voted yes because currently I can invest in a government insured investment savings account (ie. cash) at 2.1% variable which is 100% liquid. Whereas the Canadian total bond market ETF has a 2.06% yield to maturity (after MER). It seems to be that low bond yields caused by a combination of a fligh...
by Rick_J-
Sun Feb 12, 2012 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: Whole Life Policy Dividend options question
Replies: 6
Views: 606

Re: Whole Life Policy Dividend options question

Sorry, I didn't realize I had created two threads until just now. I was confused by the fact sometimes posts were different when I clicked on the threads. When I created the first thread I forgot to select notify me of responses and I clicked back on my browser and selected the option and pressed su...
by Rick_J-
Sun Feb 12, 2012 12:23 pm
Forum: Personal Finance (Not Investing)
Topic: Whole Life Policy Dividend options question
Replies: 8
Views: 756

Re: Whole Life Policy Dividend options question

Yes Some how u created 2 threads but yes, you will get the most benefit at this point Sorry, I didn't realize I had created two threads until just now. I was confused by the fact sometimes posts were different when I clicked on the threads. When I created the first thread I forgot to select notify ...
by Rick_J-
Sun Feb 12, 2012 11:23 am
Forum: Personal Finance (Not Investing)
Topic: Whole Life Policy Dividend options question
Replies: 8
Views: 756

Re: Whole Life Policy Dividend options question

I'll bet the interest rate on the payments that remain within the policy is determined at the insurance company's option and thus likely to change in ways unfavorable to you. The interest on dividends on deposit is determined by the policy and subject to a minimum 3.5% which is the current availabl...
by Rick_J-
Sat Feb 11, 2012 11:00 am
Forum: Personal Finance (Not Investing)
Topic: Whole Life Policy Dividend options question
Replies: 6
Views: 606

Whole Life Policy Dividend options question

I have a whole life policy sold to my Father 28 years ago (when I was 8). My father generously transferred ownership of the policy to me a few years ago and I removed a couple of riders (ability to double the death benefit, accidental death, and ability to skip monthly premium payments). Recently I ...
by Rick_J-
Sat Feb 11, 2012 11:00 am
Forum: Personal Finance (Not Investing)
Topic: Whole Life Policy Dividend options question
Replies: 8
Views: 756

Whole Life Policy Dividend options question

I have a whole life policy sold to my Father 28 years ago (when I was 8). My father generously transferred ownership of the policy to me a few years ago and I removed a couple of riders (ability to double the death benefit, accidental death, and ability to skip monthly premium payments). Recently I ...
by Rick_J-
Tue Feb 07, 2012 8:37 am
Forum: Investing - Help with Personal Investments
Topic: Investors under 35, what % of your portfolio is cash?
Replies: 50
Views: 4745

Re: Investors under 35, what % of your portfolio is cash?

My IPS says zero, but I have 20% in a Canadian government insured high interest savings account which is yielding 3% variable tax free. Given that the yield to maturity (after MER) on a total bond market fund in Canada is 1.95% moving my bond allocation to cash seemed like a no-brainer. My normal em...
by Rick_J-
Sat Feb 04, 2012 1:25 pm
Forum: Personal Finance (Not Investing)
Topic: When to cash in whole life policy?
Replies: 49
Views: 6725

Re: When to cash in whole life policy?

I too have a whole life policy sold to my Father 28 years ago (when I was 8). My father generously transferred ownership of the policy to me a few years ago and I removed a couple of riders (ability to double the death benefit, accidental death, and ability to skip monthly premium payments). Recentl...
by Rick_J-
Fri Feb 03, 2012 8:33 pm
Forum: Personal Finance (Not Investing)
Topic: Term life vs. whole life (universal) new twist?
Replies: 67
Views: 4320

Re: Term life vs. whole life (universal) new twist?

My parents were sold a Whole Life Policy for me when I was 8. As it is now 28 years old I set it to premium offset after ownership was transferred to me. Not a good investment, but given that most of the costs are sunk I am keeping it as the dividend pays the entire premium. I once used the loan fea...
by Rick_J-
Tue Jan 31, 2012 8:36 pm
Forum: Investing - Theory, News & General
Topic: Savings bonds lead to reverse asset location?
Replies: 2
Views: 606

Re: Savings bonds lead to reverse asset location?

A similar phenomenon seems to be happening in Canada. Currently the ytm (after MER of .32%) of a total Canadian Bond Index ETF is 1.96%. This fund has a weighted average duration of 6.69 years. At the same time a person can invest in a CDIC (same as FDIC) insured high interest savings account yieldi...
by Rick_J-
Fri Jan 20, 2012 3:52 pm
Forum: Investing - Theory, News & General
Topic: POLL: At what net-worth does an individual become wealthy?
Replies: 78
Views: 7984

Re: POLL: At what net-worth does an individual become wealth

I think the more relevant question is whether a person is a positive accumulator of wealth as defined in the millionaire next door which proposes the a household networth of TWICE the following formula (your age x 0.1 x gross household income).
by Rick_J-
Wed Jan 11, 2012 9:07 am
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 2159
Views: 1332316

Re: The Three Fund Portfolio

Thanks for your reply Taylor. I have great respect for your opinion and enjoy reading your posts and book. That said I am sure you agree that past tax adjusted performance is no guarantee of future tax adjusted performance and the last decade was great for bonds and mediocore for stocks. I certainly...
by Rick_J-
Tue Jan 10, 2012 11:17 pm
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 2159
Views: 1332316

Re: The Three Fund Portfolio

Isn't the decision to hold fixed income in tax preferred space somewhat more debateable given today's low yield environment especially if you have opted to tilt your fixed income to shorter duration. After all Vanguard Short Term Bond's Yield to Maturity is 0.99%. Personally if I had taxable investm...
by Rick_J-
Sat Dec 17, 2011 2:05 pm
Forum: Investing - Theory, News & General
Topic: The age old question of home as invesment (from a rookie)
Replies: 38
Views: 3491

Re: The age old question of home as invesment (from a rookie

From my perspective if you have own a house you have chosen to invest the portion of your networth that is in your home's equity in a principal residence. It is definitely true that this money is invested in an illiquid asset that is un-diversified and exposed to local market condition risks. Furthe...
by Rick_J-
Sun Nov 06, 2011 10:32 am
Forum: Investing - Theory, News & General
Topic: No Mortgage more Stocks?
Replies: 9
Views: 994

Re: No Mortgage more Stocks?

I have a paid of mortgage and have not used that to justify increasing my allocation of stocks which I base on my need, willingness and ability to take risk while considering my age and future pension. Basically my allocation to bonds is my age minus five with the balance in stock index funds. The o...
by Rick_J-
Sun Oct 16, 2011 12:27 pm
Forum: Investing - Help with Personal Investments
Topic: What is the source of returns for Whole Life Policies
Replies: 34
Views: 2014

Overall this policy's cash value is about 2.5% of my overall net worth (if I include my house value (we are mortgage free) and pension contributions - less if I calculate the net present value of my actual pension and social security). I feel that my wife and I are on track to live a comfortable ret...
by Rick_J-
Sun Oct 16, 2011 9:58 am
Forum: Investing - Help with Personal Investments
Topic: What is the source of returns for Whole Life Policies
Replies: 34
Views: 2014

Thanks for you responses so far. DJW: If I understand you correctly most of the high expenses of the whole life policy have already been paid as the policy is 28 years old and was purchased when I was age 8. I look at these as sunk costs and therefore should not affect my decision going forward. Bes...
by Rick_J-
Sat Oct 15, 2011 9:45 am
Forum: Investing - Help with Personal Investments
Topic: What is the source of returns for Whole Life Policies
Replies: 34
Views: 2014

What is the source of returns for Whole Life Policies

Can anyone help me understand the source of Whole Life policy Returns. My father purchased a whole life policy for me in 1983 while I was a child. In 2004 he transferred ownership of the policy to me. As someone who tries to follow the Bogelhead philosophy I would never buy an investment product I d...
by Rick_J-
Fri Sep 23, 2011 8:13 am
Forum: Investing - Theory, News & General
Topic: Once again, current equity risk premium is unusually large
Replies: 35
Views: 3582

revelo, that's an interesting analysis. In the academic literature, the 30 year TIPS yield is used in these types of analyses. I use 5 yr TIPS yields rather than 30 yr TIPS yields because, at the margin, my incremental dollar is going to be invested in either (a) stocks or (b) limited-term municipa...
by Rick_J-
Wed Sep 21, 2011 8:28 pm
Forum: Investing - Help with Personal Investments
Topic: Which mortgage to pay down ?
Replies: 8
Views: 1670

Thanks for the comments so far. I'd let the rental pay for itself personally... little benefit imo to paying it down early, IMO I do not understand why there would be little benefit in paying off the rental. I also wonder if seeing it as something that pays for itself is an example of the behavioral...
by Rick_J-
Sun Sep 18, 2011 1:11 pm
Forum: Investing - Help with Personal Investments
Topic: Which mortgage to pay down ?
Replies: 8
Views: 1670

Which mortgage to pay down ?

Hi, My brother in law lives in Texas and has decided to withdraw $20,000 in Roth IRA contributions and use it to pay down his mortgage. He is also contemplating paying an additional $5000 dollars per year against the mortgage going forward. Having made that decision he wonders whether to: A) pay dow...
by Rick_J-
Sun Jul 31, 2011 6:32 pm
Forum: Investing - Theory, News & General
Topic: Poll: What is Your Foreign Currency Exposure?
Replies: 19
Views: 2294

Oops. I selected 50+ % with out realizing that you want us to look beyond our liquid investments. If I include my entire networth I am between 11-20%. Sorry I skewed the poll. Also I answered in terms of non-Canadian currency hodligns as that is my home currency. As an aside as a Canadian I hold mos...
by Rick_J-
Mon Jun 13, 2011 9:58 am
Forum: Investing - Help with Personal Investments
Topic: Should I be buying bonds?
Replies: 22
Views: 4567

I understand your feelings about the complexity of bonds. As a relatively young investor (35 yrs), until recently, I held bonds with only a basic understanding of how they worked. Over the past few months I have been helping my parents set up a indexed portfolio an as they have 70% of their AA in fi...
by Rick_J-
Tue May 31, 2011 2:17 pm
Forum: Investing - Theory, News & General
Topic: If everyone used fundamental OR cap-weighted indexing
Replies: 14
Views: 1671

Interesting question Bogelthis. Here are my two cents: I don't think it can be properly called diversification because the ETF invest in stocks and not some other asset class with it's own correlations to other asset classes.. I think it would better be described as a tilt towards dividend payers in...
by Rick_J-
Thu May 26, 2011 7:47 pm
Forum: Investing - Theory, News & General
Topic: My financial reading list - what's missing?
Replies: 43
Views: 5643

I know a lot of people really like that book, but I think it really only applies to people who hate their jobs. If you find a career you enjoy, you can have money and your life, which is even better. Jenny, I have to respectfully disagree as I absolutely love my career and reading the book and calc...
by Rick_J-
Thu May 26, 2011 12:54 am
Forum: Investing - Theory, News & General
Topic: My financial reading list - what's missing?
Replies: 43
Views: 5643

It's been mentioned twice, but I will add a third vote for Your money or your life by Joe Dominguez and Vicki Robbins. It is a different type of book that really made me think about my relationship with money and how I spend by limited life energy. I first read it ten years ago when I was 25 and the...
by Rick_J-
Tue May 24, 2011 7:59 pm
Forum: Personal Finance (Not Investing)
Topic: Did you consider the financial aspects of having children?
Replies: 151
Views: 14034

I only considered the financial impact of choosing to have a third child. In making that choice (our third is now 9 months old) I realized that there would be a modest increase in food costs and clothing, but the only real impact was the cost for an additional airfare (once they turn two) when we tr...
by Rick_J-
Sun May 15, 2011 10:17 am
Forum: Personal Finance (Not Investing)
Topic: How much did you/Do you pay for financial advice?
Replies: 29
Views: 3925

I may have misunderstood the poll question, but I answered more than 1.5% because I used to own only actively managed mutual funds sold my a fund salesperson that all had MER higher than 2% and a back end load. I never paid directly for financial advice (only indirectly via the MER and back end loads)
by Rick_J-
Sun May 15, 2011 10:11 am
Forum: Personal Finance (Not Investing)
Topic: What personal finance software do you use?
Replies: 76
Views: 10472

Quicken (I have been using it since 1996). I do track all of my expenditures and like the ease of downloading and categorizing my bank data and the multitude of graphs and reports. I especially like it's ability to track all of my investments, assets and liabilities and maintain an up to date net wo...
by Rick_J-
Wed May 11, 2011 8:24 pm
Forum: Investing - Theory, News & General
Topic: The Investors Manifesto
Replies: 46
Views: 7793

Far be it for me to speak for Wbern either, but in Investor's Manifesto IIRC he wrote that he used to believe that anyone could and should DIY. Certainly his book Four Pillars of Investing encourages a DIY approach. I am willing to take his statement that he has changed his mind based on his life ex...
by Rick_J-
Wed May 11, 2011 8:05 am
Forum: Investing - Help with Personal Investments
Topic: TD e-Series Funds
Replies: 11
Views: 2027

If you only want to own mutual funds you first open a regular RRSP, RESP or TFSA account at the branch (they won't really understand the efunds accounts because they can't set them up). Then you complete a 1 page conversion document (I called TD easyweb to clarify the process) and mail it into TD. A...
by Rick_J-
Sun May 01, 2011 8:43 pm
Forum: Investing - Help with Personal Investments
Topic: canadian index investing
Replies: 8
Views: 1445

Here is a link to a thread and article on using ETFs to avoid high expense ratios in Canada: http://www.bogleheads.org/forum/viewtopic.php?t=71537&highlight= Dale :thumbsup This thread also highlights the need to keep US etf is RRSP and mentions using the "Norbert Gambit" to exchange money to purch...
by Rick_J-
Sun May 01, 2011 9:31 am
Forum: Investing - Help with Personal Investments
Topic: canadian index investing
Replies: 8
Views: 1445

If your interested in index in Canadian context I would recommend, in addition to the excellent sites already mentioned, that you check out The Canadian Couch Potato and the Canadian Capitalist blogs. Both write about passive investing. Also in the links of the Financial Webring Forum site Shakespea...
by Rick_J-
Thu Mar 10, 2011 6:27 pm
Forum: Investing - Theory, News & General
Topic: Asset Allocation for BHs in their early 30s
Replies: 49
Views: 7193

foozle, One option you may want to consider to keep flexibility while still having all bonds in taxable space would be to simply keep all taxable bonds in tax deferred and equities that are relatively tax efficient in taxable. If you decide that you do need funds for a house or other large purchase ...
by Rick_J-
Wed Mar 09, 2011 9:41 pm
Forum: Investing - Theory, News & General
Topic: Is 100% equities really that risky for young investors?
Replies: 127
Views: 18280

As William Bernstein has said investors are not absolved from making rational estimates of future returns of various asset classes. With wise people like Bogel, Malkiel, and Bernstein all seeing real equity returns in the single digits for the next decade I agree with Bernstein when he says in the I...
by Rick_J-
Mon Feb 21, 2011 7:00 pm
Forum: Investing - Help with Personal Investments
Topic: Home Country Bias / Foreign Equity Allocation Question
Replies: 10
Views: 2416

Thanks LadyGeek for mentioning the Canadian Forum. I wasn't aware and will check it out as well. I agree with your thoughts halfnine and it raises an important point that if you decide to minimize or avoid home country bias you need to be prepared emotionally for the tracking error that you will exp...
by Rick_J-
Mon Feb 21, 2011 3:31 pm
Forum: Investing - Help with Personal Investments
Topic: Whole Life Insurance
Replies: 97
Views: 12427

If I consider option 4 provided by BruDude how do I factor in inflation which will affect the death benefit in both examples. Does not the annual dividend help to hedge inflation as I am buying paid up additions and adding to the death benefit of the whole life policy. I am not likely to use the cas...
by Rick_J-
Mon Feb 21, 2011 11:37 am
Forum: Investing - Help with Personal Investments
Topic: Whole Life Insurance
Replies: 97
Views: 12427

I have read these post with interest because my father bought me a whole life policy in 1983 when I was 8 years old. He paid the monthly premiums until I was 25 and then turned the policy over to me. At that time I bought Term insurance to cover my wife and I, but kept the whole life policy as it co...
by Rick_J-
Sat Feb 19, 2011 11:12 am
Forum: Investing - Help with Personal Investments
Topic: Home Country Bias / Foreign Equity Allocation Question
Replies: 10
Views: 2416

Thanks asset chaos. Your reasoning appears sound to me.

It is also great to hear that other non-US investors are unsure as to the proper balance. Uncertainty loves company.
by Rick_J-
Fri Feb 18, 2011 8:11 pm
Forum: Personal Finance (Not Investing)
Topic: Books with a direct impact on your life?
Replies: 103
Views: 14596

Your Money or Your Life. I agree I read this 10 years and it has had a tremendous impact on my networth because it helped to conceptualize money as my life energy. Recently I read 168 hours by Laura Vanderkam and it has (much like your money or your life) caused me to spend my time consciously and ...
by Rick_J-
Thu Feb 17, 2011 10:14 pm
Forum: Investing - Theory, News & General
Topic: Your worst investing mistake
Replies: 108
Views: 17786

Invested $1000 in a penny stock diamond mine operation based on buzz at work. I did spend time doing what I thought was diligence, but that amounted to reading forums that were filled with pumpers and company promo material. I had no sell side strategy and watched it double and then go to zero witho...
by Rick_J-
Thu Feb 17, 2011 9:58 pm
Forum: Investing - Theory, News & General
Topic: Poll: What is your investment philosophy?
Replies: 74
Views: 9247

I voted efficient marketeer, but perhaps I voted to early because after reading the posts I would probably vote other. Explanation: I believe that what Malkiel calls Firm foundation theory or fundamental analysis matters in the long run (as Ben Graham said in the long run the market is a weighing ma...
by Rick_J-
Thu Feb 17, 2011 8:44 pm
Forum: Investing - Theory, News & General
Topic: Do you have a written Investment Policy Statement?
Replies: 61
Views: 6568

I recently created one to help me crystallize my investing philosophy after reading books by Bogle, Malkiel and Bernstein et al. It helped me realize that I could not create any useful market valuation metric or rule to shift my asset allocation by a modest 5- 10 %. Instead I settled on identifying ...