Search found 1300 matches

by dkturner
Fri Feb 16, 2018 11:02 am
Forum: Investing - Theory, News & General
Topic: Retirees: The common sense withdrawal method
Replies: 81
Views: 6303

Re: Retirees: The common sense withdrawal method

We have settled on a process that uses 3 separate inputs: (1) portfolio yield (2) RMD amount and (3) 4% “rule” adjusted for investment expenses. Our goal is to limit our withdrawals from our combined portfolios to the lowest of the 3 inputs. We are in our 7th year of retirement and we only exceeded ...
by dkturner
Thu Feb 15, 2018 2:15 pm
Forum: Investing - Theory, News & General
Topic: What is the evidence against slice and dice?
Replies: 58
Views: 4095

Re: What is the evidence against slice and dice?

The Fama and French research wasn't published until 1992, and tools in the form of mutual funds for slicing and dicing weren't available before then. For example, the DFA US Small Cap Value Portfolio fund had its inception in 1993; Vanguard Small Cap Value Index Fund, 1998; T. Rowe Price Small-Cap ...
by dkturner
Mon Feb 12, 2018 10:06 am
Forum: Investing - Theory, News & General
Topic: I think US interest rates could drop.
Replies: 61
Views: 6118

Re: I think US interest rates could drop.

I’ve been following the 20 basis points per year approach recommended by Larry Swedroe. Maturities can be extended as long as you are receiving 20 bp of additional yield for each year of increase in maturity. In the last few weeks this indicator has signaled that many intermediate term bond funds sh...
by dkturner
Mon Feb 05, 2018 4:28 pm
Forum: Investing - Theory, News & General
Topic: Vanguard site is crashed now?
Replies: 188
Views: 14501

Re: Vanguard site is crashed now?

samsoes wrote:
Mon Feb 05, 2018 4:13 pm
Ladies and gentlemen who couldn't reach Vanguard:

Were we market timing?

Shame! :mrgreen:
Are those of us who rebalanced today “guilty” too? :moneybag
by dkturner
Mon Feb 05, 2018 8:49 am
Forum: Investing - Theory, News & General
Topic: Economist - “Factor investing” gains popularity
Replies: 22
Views: 2451

Re: Economist - “Factor investing” gains popularity

Whether to use factor investing in addition to the above is not going to make the difference between retiring with $500K or $3M. Maybe you'll get $3.3M with some factor investing instead of $3M if you only use total market investing but there's a chance it might be $2.9M instead of $3M. I’ll take t...
by dkturner
Wed Jan 31, 2018 12:22 pm
Forum: Investing - Theory, News & General
Topic: Living on Dividends and Interest
Replies: 58
Views: 7434

Re: Living on Dividends and Interest

I’m surprised that nobody has brought up the old saw that, although dividends rise and fall, they are more stable than principal values. True, but largely irrelevant. If one receives a dividend when the value of the underlying stock has declined in value by say 30%, she is effectively selling some o...
by dkturner
Thu Jan 18, 2018 4:33 pm
Forum: Investing - Theory, News & General
Topic: Year 2000 retirees using the '4% rule' - Where are they now?
Replies: 354
Views: 34899

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

You are talking about having a 50% drop THEN something worse than the great depression (or 70s inflation) immediately afterwards. I don't worry about this because the likelihood of retaining employment under these circumstances is also very slim. Folks who think a job or realestate or whatever is s...
by dkturner
Mon Jan 15, 2018 4:35 pm
Forum: Investing - Theory, News & General
Topic: Year 2000 retirees using the '4% rule' - Where are they now?
Replies: 354
Views: 34899

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

In preparation for our retirement in late 2011 I began running the 4% initial withdrawal rate, adjusted annually for inflation, scenario for an individual retiring at YE 1999 and YE 2007. I used the actual returns of our portfolio from the performance data provided to us by the Vanguard Group. I us...
by dkturner
Mon Jan 15, 2018 2:13 pm
Forum: Investing - Theory, News & General
Topic: Year 2000 retirees using the '4% rule' - Where are they now?
Replies: 354
Views: 34899

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

In preparation for our retirement in late 2011 I began running the 4% initial withdrawal rate, adjusted annually for inflation, scenario for an individual retiring at YE 1999 and YE 2007. I used the actual returns of our portfolio from the performance data provided to us by the Vanguard Group. I use...
by dkturner
Thu Jan 11, 2018 4:12 pm
Forum: Investing - Theory, News & General
Topic: Corporate bonds vs. Treasuries
Replies: 52
Views: 4467

Re: Corporate bonds vs. Treasuries

If you are not going to rebalance especially in a stock market correction situation, it doesn't really matter what your fixed income composition might look like. On the rare occasions when we have rebalanced, in the traditional sense, it has been one way - selling bonds and buying equities when equ...
by dkturner
Thu Jan 11, 2018 2:06 pm
Forum: Investing - Theory, News & General
Topic: Corporate bonds vs. Treasuries
Replies: 52
Views: 4467

Re: Corporate bonds vs. Treasuries

After doing numerous back tests on the Portfolio Visualizer it appears that, if you increase your equity exposure, a 50/50 equity/corporate bond portfolio has very similar returns, and standard deviation of those returns, to a 60/40 equity/Treasury portfolio over most periods - even for the last 10...
by dkturner
Thu Jan 11, 2018 10:24 am
Forum: Investing - Theory, News & General
Topic: Corporate bonds vs. Treasuries
Replies: 52
Views: 4467

Re: Corporate bonds vs. Treasuries

Our combined portfolios consist of a 50/50 mix of equities and high quality corporate bonds (primarily Vanguard Intermediate-Term Investment Grade Fund). As the equity bull market gets longer in the tooth we have been contemplating switching our fixed income allocation to Treasuries. Between a TRSY...
by dkturner
Sun Jan 07, 2018 9:36 am
Forum: Investing - Theory, News & General
Topic: Corporate bonds vs. Treasuries
Replies: 52
Views: 4467

Re: Corporate bonds vs. Treasuries

Thank you all for your thoughtful comments. After reading through your comments I went to the Portfolio Visualizer mentioned early on (I had bookmarked it on my iPad several years ago but had forgotten about it.) I compared our existing portfolios (40% domestic equity, 10% international equity, 50% ...
by dkturner
Sat Jan 06, 2018 3:48 pm
Forum: Investing - Theory, News & General
Topic: Corporate bonds vs. Treasuries
Replies: 52
Views: 4467

Corporate bonds vs. Treasuries

Our combined portfolios consist of a 50/50 mix of equities and high quality corporate bonds (primarily Vanguard Intermediate-Term Investment Grade Fund). As the equity bull market gets longer in the tooth we have been contemplating switching our fixed income allocation to Treasuries. We are comforta...
by dkturner
Sun Dec 31, 2017 7:47 am
Forum: Investing - Theory, News & General
Topic: The Growing Peril of Index Funds: Too Much Tech
Replies: 67
Views: 5892

Re: The Growing Peril of Index Funds: Too Much Tech

...The higher the price goes, the more the index funds have to buy. No, they don't. That's just plain wrong, and I've already explained why it's wrong. If the Vanguard Total Stock Market Index Fund holds $20 billion in Apple stock, and the price of Apple stock doubles, then the fund needs to hold $...
by dkturner
Fri Dec 29, 2017 8:46 am
Forum: Investing - Theory, News & General
Topic: The Growing Peril of Index Funds: Too Much Tech
Replies: 67
Views: 5892

Re: The Growing Peril of Index Funds: Too Much Tech

I'm fairly new to all this, so correct me if I'm wrong. The argument against indexing seems to be that since indexes are market-cap-weighted, they cause you to buy high and sell low, and it's impossible to rebalance when a particular sector or company outperforms the rest of the market. What is the...
by dkturner
Wed Dec 20, 2017 2:21 pm
Forum: Investing - Theory, News & General
Topic: how do I get rid of residual $1 in VG ira after rollover to employer 401k? backdoor roth pending
Replies: 14
Views: 889

Re: how do I get rid of residual $1 in VG ira after rollover to employer 401k? backdoor roth pending

boglechu wrote:
Wed Dec 20, 2017 1:27 pm
dkturner wrote:
Wed Dec 20, 2017 11:54 am
Why don't you just ignore the orphan $1? Let the folks at Vanguard deal with it, since it's a much bigger problem for Vanguard than it is for you.
But doesn’t the rule say u can’t do Backdoor Roth is u have any dollar amount in a remaining IRA?
D
by dkturner
Wed Dec 20, 2017 11:54 am
Forum: Investing - Theory, News & General
Topic: how do I get rid of residual $1 in VG ira after rollover to employer 401k? backdoor roth pending
Replies: 14
Views: 889

Re: how do I get rid of residual $1 in VG ira after rollover to employer 401k? backdoor roth pending

Why don't you just ignore the orphan $1? Let the folks at Vanguard deal with it, since it's a much bigger problem for Vanguard than it is for you.
by dkturner
Sun Dec 17, 2017 2:21 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Government Index Funds Benchmark Change - Update
Replies: 10
Views: 1189

Re: Vanguard Government Index Funds Benchmark Change - Update

On Friday Vanguard should release the November 30 portfolio construction information for all of its funds. Alright, the November EOM portfolio has been published. And at least for the short-term Treasury Index fund (VSBSX) there is still virtually no change in the portfolio. There is 7.5% non us-tr...
by dkturner
Fri Dec 15, 2017 7:53 am
Forum: Investing - Theory, News & General
Topic: Did QCDs on phone with Vanguard - a painful process
Replies: 2
Views: 617

Re: Did QCDs on phone with Vanguard - a painful process

There are other tasks at Vanguard that can't be done on line and are equally long and boring when done by telephone. Several weeks ago I spent 40 minutes on the phone with a, very knowledgeable, Vanguard representative transferring shares of three Vanguard funds to three new shareholders (nine trans...
by dkturner
Wed Dec 13, 2017 1:09 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Government Index Funds Benchmark Change - Update
Replies: 10
Views: 1189

Re: Vanguard Government Index Funds Benchmark Change - Update

On Friday Vanguard should release the November 30 portfolio construction information for all of its funds.
by dkturner
Mon Dec 04, 2017 4:50 pm
Forum: Investing - Theory, News & General
Topic: Vanguard customer service reps need some training
Replies: 66
Views: 7221

Re: Vanguard customer service reps need some training

No... Giving very specific instructions to take the money from one fund and exchange it into three specific funds is not chaos; it's simple directions. I'm not going to fix Vanguard's mistake, they can fix it themselves. If you brought your car in to be detailed and you noticed that they didn't cle...
by dkturner
Mon Dec 04, 2017 11:55 am
Forum: Investing - Theory, News & General
Topic: Which crash have you seen it before it is coming?
Replies: 134
Views: 10293

Re: Which crash have you seen it before it is coming?

I've seen all of the crashes since 1973-1974 coming - I just didnt know whether they would start this afternoon, or in 10 years.
by dkturner
Mon Dec 04, 2017 11:42 am
Forum: Investing - Theory, News & General
Topic: Bloomberg--BlackRock and Vanguard Are Less Than a Decade Away From Managing $20 Trillion
Replies: 4
Views: 832

Re: Bloomberg--BlackRock and Vanguard Are Less Than a Decade Away From Managing $20 Trillion

This is both an economic and a political issue. The economic issue is sort of fuzzy because economists don't agree on what happens with respect to security prices if passively held assets are concentrated in the hands of two or three asset managers. The political issue is pretty cut and dried. Conce...
by dkturner
Wed Nov 29, 2017 8:36 am
Forum: Investing - Theory, News & General
Topic: Vanguard to launch US 'smart beta' ETFs - Will this board burn down?
Replies: 156
Views: 17449

Re: Vanguard to launch US 'smart beta' ETFs - Will this board burn down?

I don't think Vanguard's move into factor investing will cause this board to burn down, but we may be treated to periodic food fights between the Swedroites and the Know Nothings ("we invest in total market funds, because we can know nothing about the future"). It will be interesting to see what act...
by dkturner
Mon Nov 27, 2017 4:35 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone bail early and regret it?
Replies: 12
Views: 2959

Re: Anyone bail early and regret it?

Not really bailing, but in March I sold equities in my R/O IRA equal to 2 years worth of RMDs and bought intermediate-term corporate bonds with the proceeds. I'll need half of the money next month and the second half in December of 2018. I regret the early move with respect to this year's RMD. The j...
by dkturner
Sun Nov 26, 2017 6:21 pm
Forum: Investing - Theory, News & General
Topic: Basis question regarding generation skipping trusts
Replies: 3
Views: 307

Re: Basis question regarding generation skipping trusts

I’ve got a question about capital gains tax basis on assets in a generation skipping trust. Person in generation 1 establishes a testamentary GST with income going to a person in generation 2. When the person in generation 2 dies, the assets of the trust are distributed to people in generation 3. W...
by dkturner
Mon Nov 20, 2017 5:43 am
Forum: Investing - Theory, News & General
Topic: Is investing with Vanguard a tragedy of the commons?
Replies: 41
Views: 5139

Re: Is investing with Vanguard a tragedy of the commons?

If investors accept that massive concentration of ownership in the largest companies in the world is bad, then investors should choose another index fund provider than Vanguard when there are low cost alternatives. Even if it may cost them a basis point or so of performance every year. In response ...
by dkturner
Sun Nov 19, 2017 11:58 am
Forum: Investing - Theory, News & General
Topic: Retirees: I got this!!
Replies: 82
Views: 10343

Re: Retirees: I got this!!

Of those BHs who've been retired a while, I was wondering when you really started feeling comfortable about your finances in retirement. That is, where you thought it's highly unlikely that you'd run into massive distress about your investments. I've been retired almost 7 years and find myself feel...
by dkturner
Sun Nov 12, 2017 10:08 am
Forum: Investing - Theory, News & General
Topic: Should you own only non-U.S. stocks?
Replies: 63
Views: 6826

Re: Should you own only non-U.S. stocks?

oldcomputerguy wrote:
Fri Nov 10, 2017 7:51 pm
CULater wrote:
Fri Nov 10, 2017 2:10 pm
According to Rob Arnott's group, Research Affiliates, you shouldn't own any U.S. stocks at all right now:
Doesn’t that “right now” imply market timing?

I would certainly hope so. I would hate to pay the fees that Research Affiliates charges for a static buy and hold portfolio.
by dkturner
Sun Nov 12, 2017 8:47 am
Forum: Investing - Theory, News & General
Topic: My favorite bond portfolio
Replies: 19
Views: 3061

Re: My favorite bond portfolio

I am intrigued however by having the 3 different funds instead of 1 Total Bond Fund, for the fact that these 3 bond funds will behave in different ways at different times, and it might be nice to have your choice of fund to pull from, in the event that you want to rebalance, or you need to withdraw...
by dkturner
Fri Oct 13, 2017 6:10 am
Forum: Investing - Theory, News & General
Topic: Vanguard's Global Wellesley Income and Global Wellington Funds in registration [now available]
Replies: 129
Views: 32879

Re: Vanguard's Global Wellesley Income and Global Wellington Funds in registration

What kind of experience does Wellington have in international investing? Vanguard's Equity Income, Wellesley and Wellington Fund are all managed by Wellington Management. For as long as I have owned these funds (about 18 years) they have contained varying allocations to international equities, prim...
by dkturner
Thu Oct 12, 2017 1:45 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Non-US Valuations Look Attractive
Replies: 82
Views: 9524

Re: Larry Swedroe: Non-US Valuations Look Attractive

I'm confused. Am I supposed to increase my non-us holdings based on this? Why didn't you tell me this in January before VXUS went up over 20% (vs VTI up 13) when it was 20% more attractive? If my ideal 50/50 US/Int AA goal was rebalanced in January, I'd be overweight non-US and rebalancing now woul...
by dkturner
Sun Oct 08, 2017 12:12 pm
Forum: Investing - Theory, News & General
Topic: VFITX, VBIIX or VBMFX for Swensen portfolio?
Replies: 5
Views: 703

Re: VFITX, VBIIX or VBMFX for Swensen portfolio?

It's also worth noting that the "Swensen Portfolio" recommends a relatively modest allocation (only 30%) to fixed income. As a general rule most academic oriented advisors recommend that the higher the equity allocation in a portfolio, the higher the QUALITY of the fixed income should be. This makes...
by dkturner
Thu Oct 05, 2017 5:13 am
Forum: Investing - Theory, News & General
Topic: Any advice on moving my company 401k?
Replies: 17
Views: 1733

Re: Any advice on moving my company 401k?

Thanks dkturner. That is the obvious thing to do. Talk to our provider about our fees. Sometimes challenging though, to find the time to chase down these details when our core business takes up so much time and attention. We're not talking about "details" here. We're talking about the big picture o...
by dkturner
Tue Oct 03, 2017 8:48 am
Forum: Investing - Theory, News & General
Topic: Any advice on moving my company 401k?
Replies: 17
Views: 1733

Re: Any advice on moving my company 401k?

BTW, in my 401k, T Rowe Price offers Vanguard index funds as some of their choices. Perhaps you could see if T Rowe Price would do this for you. Thank you Daytona084. That is exactly the reason I posted my question. The idea of keeping the plan at T Rowe would save us a lot of administrative work a...
by dkturner
Wed Sep 27, 2017 7:21 am
Forum: Investing - Theory, News & General
Topic: Endowment - Investment & Spending Policy
Replies: 7
Views: 983

Re: Endowment - Investment & Spending Policy

Deleted duplicate response.
by dkturner
Wed Sep 27, 2017 7:21 am
Forum: Investing - Theory, News & General
Topic: Endowment - Investment & Spending Policy
Replies: 7
Views: 983

Re: Endowment - Investment & Spending Policy

The Vanguard Group has a unit that deals directly with endowments and foundations. This unit can either (1) prepare a portfolio of Vanguard index funds, or a combination of index and active funds, which your organization can run with, or (2) will create and manage a portfolio of index or index and a...
by dkturner
Mon Sep 18, 2017 10:44 am
Forum: Investing - Theory, News & General
Topic: International Equity: Are managed funds better than Index funds?
Replies: 35
Views: 2605

Re: International Equity: Are managed funds better than Index funds?

M* does more than ratings which are useless. Morningstar ratings are not useless if used appropriately. Avoid funds with 1 and 2 star ratings. Indeed. You are right, I remember a study that showed that low star ratings did show persistence. However, frequently the reason why funds have 1 and 2-star...
by dkturner
Sat Sep 16, 2017 12:45 pm
Forum: Investing - Theory, News & General
Topic: Help! - How to improve small company 401k?
Replies: 19
Views: 1928

Re: Help! - How to improve small company 401k?

Wow, those ERs are really high, but what's worse, and the reason why they are so high, is R-2 funds contain a 0.75% 12b-1 fee (commission). That raises the question, is this plan really conforming to the new fiduciary standard? It's a terrible plan, and you have to wonder why it was selected. Is th...
by dkturner
Mon Sep 11, 2017 9:02 am
Forum: Investing - Theory, News & General
Topic: ownership of "small cap value" stocks
Replies: 50
Views: 3942

Re: ownership of "small cap value" stocks

This looks like a bubble also: 1 Apple Inc. 2 Microsoft Corp. 3 Alphabet Inc. 4 Amazon.com Inc. 5 Facebook Inc. That's the Top 5 holdings of Total Stock Market. And those five holdings comprise more than 10% of the total market capitalization of total stock market funds. All of the small-cap stocks...
by dkturner
Mon Sep 04, 2017 6:39 am
Forum: Personal Finance (Not Investing)
Topic: Jason Zweig's tax bomb example
Replies: 28
Views: 4047

Re: Jason Zweig's tax bomb example

No. Some, or most of that 22K was a return of his principle. He bought the shares just before the distribution, and thus received the distribution. However, he gets to pay the tax on that distribution even though he did not participate fully in the gains. The moral of this story is to pay attention...
by dkturner
Thu Aug 31, 2017 10:58 am
Forum: Investing - Theory, News & General
Topic: Value Factor Investing is not Value Investing
Replies: 126
Views: 10710

Re: Value Factor Investing is not Value Investing

Interesting discussion. I prefer the Vanguard Equity Income, Wellesley and Wellington funds for my immersion in "value" investing. Although classified as value funds, none of them are quantitatively driven, like the various value index funds, but historically they have managed to perform well in bot...
by dkturner
Thu Aug 24, 2017 11:30 am
Forum: Investing - Theory, News & General
Topic: Vanguard Announces Plans To Launch Total Corporate Bond ETF
Replies: 42
Views: 7552

Re: "more than 371 funds?"

Bogleheads: According to the Announcement: The firm, headquartered in Valley Forge, Pennsylvania, offers more than 371 funds . Can anyone explain why Vanguard offers so many funds? Best wishes Taylor When the Vanguard Group is approaching $5,000,000,000,000 in assets under management it has to adop...
by dkturner
Tue Aug 22, 2017 11:26 am
Forum: Investing - Theory, News & General
Topic: Vanguard Announces Plans To Launch Total Corporate Bond ETF
Replies: 42
Views: 7552

Re: "more than 371 funds?"

Bogleheads: According to the Announcement: The firm, headquartered in Valley Forge, Pennsylvania, offers more than 371 funds . Can anyone explain why Vanguard offers so many funds? Best wishes Taylor When the Vanguard Group is approaching $5,000,000,000,000 in assets under management it has to adop...
by dkturner
Sun Aug 20, 2017 12:55 pm
Forum: Investing - Theory, News & General
Topic: Plaintiffs win Tibble v Edison (re: lower fees in 401k's)
Replies: 3
Views: 931

Re: Plaintiffs win Tibble v Edison (re: lower fees in 401k's)

In my opinion, this is not a victory for lower fees in a retirement plan. The sponsor didn't lose this case because high-fee, actively managed funds were provided. They lost because the exact same funds they offered were available at a lower cost. Honestly, I don't know how this happens with a plan...
by dkturner
Wed Jun 14, 2017 11:08 am
Forum: Investing - Theory, News & General
Topic: Favorite Feature of Vanguard Website?
Replies: 67
Views: 7179

Re: Favorite Feature of Vanguard Website?

I like the Personal Performance screen, which gives the 1,3,5 and 10 year annualized returns of your portfolio and updates them each month. Since I like to tilt my portfolio in different directions from time to time I can accurately determine whether I'm making progress or just spinning my wheels. ...
by dkturner
Tue Jun 13, 2017 3:59 pm
Forum: Investing - Theory, News & General
Topic: Favorite Feature of Vanguard Website?
Replies: 67
Views: 7179

Re: Favorite Feature of Vanguard Website?

I like the Personal Performance screen, which gives the 1,3,5 and 10 year annualized returns of your portfolio and updates them each month. Since I like to tilt my portfolio in different directions from time to time I can accurately determine whether I'm making progress or just spinning my wheels.
by dkturner
Thu Jun 08, 2017 9:41 am
Forum: Investing - Theory, News & General
Topic: Retirees: What are you doing about withdrawing?
Replies: 31
Views: 5158

Re: Retirees: What are you doing about withdrawing?

We reinvest all of the dividend and interest from our taxable investments and withdraw our RMDs (net of income tax withholding) in early December and have the cash deposited in our taxable money market fund account. We estimate how much of the net RMD amount we will need for the following year to su...
by dkturner
Wed May 31, 2017 3:18 pm
Forum: Investing - Theory, News & General
Topic: "Effective July 20, 2017, Vanguard will impose a $10 wire fee on outgoing wire redemptions from nonretirement accounts."
Replies: 30
Views: 4354

Re: "Effective July 20, 2017, Vanguard will impose a $10 wire fee on outgoing wire redemptions from nonretirement accoun

I have a Vanguard Rollover IRA mutual fund account and a Vanguard Brokerage taxable account, which is the recipient of my annual RMDs. On day X my annual RMD is debited from my R/O IRA and sent to the sweep money market fund in my taxable Vanguard Brokerage account, where it arrives on X+2 business ...