Search found 122 matches

by B. Wellington
Tue Sep 18, 2018 6:07 am
Forum: Investing - Theory, News & General
Topic: 401k: Why not only after-tax?
Replies: 31
Views: 2982

Re: 401k: Why not only after-tax?

I have seen a number of threads where people are balancing pre-tax and after-tax in their 401K accounts. The bottom line: It is more efficient to use pre-tax if you expect to be in a lower tax bracket at withdrawal, it is more efficient to use after-tax if you expect to be in a higher tax bracket a...
by B. Wellington
Thu Sep 13, 2018 6:00 am
Forum: Investing - Help with Personal Investments
Topic: What do I do with my investments during a downturn/recession?
Replies: 24
Views: 2761

Re: What do I do with my investments during a downturn/recession?

Continue doing what you do today. +1 During 2008-09 (my mid 50s) I kept on contributing to my 403B plan as I had been doing since the mid 1980s: 50% stock, 50% stable-value fund, without rebalancing. (This was before I found Bogleheads and learned about rebalancing.) +2 I don't have a 403B plan. Ho...
by B. Wellington
Mon Sep 10, 2018 10:29 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks continue to soar!
Replies: 273
Views: 25763

Re: U.S. stocks continue to soar!

After several bad days, we can change the title to US Stocks Continue to Sore! I had some uneasiness when this thread popped up. Sure enough, the market has drifted downward since. To my dismay, the thread caught on. This reminds me of the "Elves", the panel of technical analysts who weekly gave ou...
by B. Wellington
Wed Sep 05, 2018 10:24 am
Forum: Investing - Theory, News & General
Topic: Investment Books
Replies: 42
Views: 2817

Re: Investment Books

Bogleheads - In the interest of simplicity and minimalism I have a question that I am very interested in thoughts and feedback. How many investment books do you typically have on a bookshelf? Do you continue to buy books? Have you made a decision over time to remove? We have really cleaned out our ...
by B. Wellington
Wed Aug 22, 2018 7:29 am
Forum: Investing - Help with Personal Investments
Topic: Nearing retirement - portfolio suggestions
Replies: 8
Views: 936

Re: Nearing retirement - portfolio suggestions

Just a couple of things to consider. Is your wife willing and able to re-balance this portfolio if something happens to you? Your Asset Allocation looks to be 50/50, is this your target going into retirement? And are you comfortable having this much in cash? How are you planning to withdraw from thi...
by B. Wellington
Thu Aug 09, 2018 10:19 am
Forum: Investing - Theory, News & General
Topic: Dividend Growth Investing--what's the attraction?
Replies: 12
Views: 1355

Re: Dividend Growth Investing--what's the attraction?

+1 Nice post Jo. "High Quality" = "Less" risk and a margin for error. I look at dividends much in the same way. However I am ~3 years from RE. (Retire Early) I have no particular opinion on the substance of the dividends issue. But I can't help but notice that you have the perfect screen name for s...
by B. Wellington
Thu Aug 09, 2018 5:48 am
Forum: Investing - Theory, News & General
Topic: Dividend Growth Investing--what's the attraction?
Replies: 12
Views: 1355

Re: Dividend Growth Investing--what's the attraction?

Dividends signal something about a company. Lowering or stopping a regular dividend is treated adversely in the market, and a company that has a long history of uninterrupted and rising dividends is a pretty good signal that the company is doing ok financially and that the management is taking the ...
by B. Wellington
Thu Aug 02, 2018 4:54 am
Forum: Investing - Theory, News & General
Topic: Respect the Magical Power of Mean Reversion
Replies: 20
Views: 2198

Re: Respect the Magical Power of Mean Reversion

The problem with reversion to the mean is that we don't know if or when that will happen. Or how swiftly that movement could take place. It could be a slow and steady process that may take years to develop and we just don't know for sure. Following the advice and acting on it in 2013 would have resu...
by B. Wellington
Wed Jul 25, 2018 5:00 am
Forum: Investing - Theory, News & General
Topic: size/liquidity of your emergency fund in retirement?
Replies: 9
Views: 1181

Re: size/liquidity of your emergency fund in retirement?

Over the last few years there have been many debates on emergency funds, how much CASH to keep on hand? Bucket strategies consisting of X number of years in "liquid" investments, etc. I am at a point where I look at this as a "spending fund" rather than a "bucket system" or emergency fund. Others ha...
by B. Wellington
Fri Jul 13, 2018 10:35 am
Forum: Personal Finance (Not Investing)
Topic: Would you trade experiences in your youth for early retirement
Replies: 81
Views: 5813

Re: Would you trade experiences in your youth for early retirement

Thanks Timelord, this topic though touched on in the FIRE community once in awhile, has become very important to the DW and I today. In our advancing years we have seen more and more family members and close friends pass and has made us stop and reflect on what truly is important in our lives. I wou...
by B. Wellington
Wed Jun 13, 2018 9:33 am
Forum: Investing - Theory, News & General
Topic: You Can Market Time At Valuation Extremes
Replies: 64
Views: 7644

Re: You Can Market Time At Valuation Extremes

Sure, in hindsight the 90 CAPE in Japan was insane. But Black Tuesday happened at around 30 CAPE. If you had been Japanese during the boom and sold all your equities when CAPE hit 30, where would that have left you? Successfully market timing doesn't mean just correctly saying that the market is ov...
by B. Wellington
Mon Jun 11, 2018 10:28 am
Forum: Investing - Theory, News & General
Topic: Early retirement pros and cons:
Replies: 78
Views: 10779

Re: Early retirement pros and cons:

I think it is important to remember the current attention-getting movement is FI/RE , Financial Independence/Retire Early. The emphasis is on financial independence. Use the strength of financial independence to have the freedom to stay in your job, pursue another, or whatever. This is admirable. I...
by B. Wellington
Fri Jun 08, 2018 5:58 am
Forum: Investing - Theory, News & General
Topic: Don’t cheat yourself with the 4% rule
Replies: 184
Views: 25765

Re: Don’t cheat yourself with the 4% rule

Sadly, this view of comparing one's remaining life expectancy to one's forecasted retirement success rate is missing from most discussions of this topic. It's an uncomfortable thing to think about. "Life expectancy" is a 50/50 proposition. I think a bigger error is believing life can't really be li...
by B. Wellington
Wed Jun 06, 2018 6:02 am
Forum: Investing - Theory, News & General
Topic: Don’t cheat yourself with the 4% rule
Replies: 184
Views: 25765

Re: Don’t cheat yourself with the 4% r

“I’m planning on a 2.5% [1.5%...0.5%...] portfolio withdrawal rate” is more an implicit brag about the size of poster’s portfolio than a reasoned objection to the so-called 4% rule. To the extent that is even a rule, 4% is designed for retirees of *relatively* modest means who are concerned—in thei...
by B. Wellington
Wed May 30, 2018 8:51 am
Forum: Investing - Theory, News & General
Topic: To be or not to be complex, that is the question
Replies: 146
Views: 12824

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

Bogleheads spend a lot of time talking about the benefits and drawbacks of simple portfolio strategies and “complex” strategies. Simple portfolios include Life-Strategy funds, 2-fund, 3-fund, Core-4 and other set and forget type strategies. Complex portfolios include factor tilts, commodity exposur...
by B. Wellington
Wed May 23, 2018 10:25 am
Forum: Investing - Help with Personal Investments
Topic: Need advice for 66 year old new investor
Replies: 4
Views: 617

Re: Need advice for 66 year old new investor

A 66 year old relative just cashed in a fund that was going nowhere in the four years she had it. Besides fees of 2% also had a back end load. Has a mortgage, no other investments or cash but the $12000 from this fund. Still working and obviously will have to for some time. I felt this forum could ...
by B. Wellington
Wed May 16, 2018 11:40 am
Forum: Investing - Help with Personal Investments
Topic: Friend says "Stock market will crash, invest in silver" - thoughts?
Replies: 127
Views: 9253

Re: Friend says "Stock market will crash, invest in silver" - thoughts?

I think this forum is a bit obsessed with the idea that investment is stock index + bond index. Any contrary idea suggesting physical assets such as property and gold as diversification and hedge is looked down upon - just like real estate forums where stock investment may be looked down - having a...
by B. Wellington
Wed May 16, 2018 6:23 am
Forum: Investing - Help with Personal Investments
Topic: Friend says "Stock market will crash, invest in silver" - thoughts?
Replies: 127
Views: 9253

Re: Friend says "Stock market will crash, invest in silver" - thoughts?

OP, serious question...Why does your friend suggest silver?

Why not Real Estate? Gold? Treasuries? Money Market? What does he see that we do not?
by B. Wellington
Tue May 15, 2018 10:20 am
Forum: Investing - Help with Personal Investments
Topic: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?
Replies: 71
Views: 11162

Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

With a short term treasury bond ladder earning 2-3% and only taking out $40k per year how long would it last? Earning 0% it would last 25 years (and no income taxes). Add in 2% and it lasts much longer. Earning 3% it would last 47 years. Earning 2% it would last 35 years. Very interesting numbers A...
by B. Wellington
Tue May 15, 2018 7:25 am
Forum: Investing - Help with Personal Investments
Topic: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?
Replies: 71
Views: 11162

Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

advice on how to generate $40-60K from $1,000,000 50-50 equities-bonds, withdraw 4%. So years more than $40k, some years maybe less, but long term data suggests this can be done. But there’s downside risk. You’ll have to take some risk to get those returns. As others have pointed out, there is no "...
by B. Wellington
Tue May 08, 2018 5:00 am
Forum: Investing - Theory, News & General
Topic: Why do so many Americans not own stocks?
Replies: 44
Views: 3934

Re: Why do so many Americans not own stocks?

Most Americans have less than $1,000 in savings. Even among those with higher incomes, Americans are really bad at saving. +1 Add in the average car payment in America ($503 each) And the average house payment ($1061) per month. Then food, clothing, insurance, fuel, phone, cable, etc. etc. You then...
by B. Wellington
Fri Apr 27, 2018 10:25 am
Forum: Personal Finance (Not Investing)
Topic: how would you handle this--collecting life insurance
Replies: 31
Views: 3284

Re: how would you handle this--collecting life insurance

aquamarine, so sorry for your loss... My father went through this almost exactly the same way as you describe when my mother passed over a year ago. Delay after delay. The amount of money in question would only be to help reimburse some of the costs of the funeral. Of course you are dealing with an ...
by B. Wellington
Fri Apr 27, 2018 4:45 am
Forum: Personal Finance (Not Investing)
Topic: Those with high savings rate: why?
Replies: 246
Views: 34365

Re: Those with high savings rate: why?

Is it because you want to retire early, or You are not sure what the future holds, e.g. low job security, or Mix of these. It's not so much to specifically retire early, but to reach financial independence early. Then it's not a monetary choice to stop working, but a decision based on what we want ...
by B. Wellington
Fri Apr 06, 2018 1:39 pm
Forum: Investing - Theory, News & General
Topic: What can we learn from secret millionaires.
Replies: 93
Views: 17825

Re: What can we learn from secret millionaires.

Those of us who have amassed that sort of wealth or are on track to do so should realize how fortunate and lucky we are. Yes, many of us worked hard, but we also usually had a lot of help, and caught some lucky breaks too. Luck had nothing to do with it, fortunate, depends on your perspective. Help...
by B. Wellington
Fri Apr 06, 2018 10:23 am
Forum: Investing - Theory, News & General
Topic: Swedroe: Look Beyond 60/40 Portfolio
Replies: 237
Views: 17692

Re: Swedroe: Look Beyond 60/40 Portfolio

OP, I agree with the general theme of the article. However, I believe real investor return will be good. I could always count on the volatility of the market and recession to force 100/0 investor to capitulate. Then, a 60/40 investor that buy, hold, and rebalance will profit greatly. Not many folks...
by B. Wellington
Fri Apr 06, 2018 7:30 am
Forum: Investing - Theory, News & General
Topic: Article on "Buckets" at Morningstar. How Does The Bucket Approach To Retirement Allocation apply to you?
Replies: 23
Views: 2798

Re: Article on "Buckets" at Morningstar. How Does The Bucket Approach To Retirement Allocation apply to you?

There are a number of people who like to heap scorn on any approach which doesn't meet their personal approval. It can be buckets, or international, or particular AA choices. I happen to think there are many roads to Dublin, and while buckets don't hold any magic properties, they can be a useful wa...
by B. Wellington
Fri Apr 06, 2018 4:58 am
Forum: Investing - Theory, News & General
Topic: What can we learn from secret millionaires.
Replies: 93
Views: 17825

Re: What can we learn from secret millionaires.

Those of us who have amassed that sort of wealth or are on track to do so should realize how fortunate and lucky we are. Yes, many of us worked hard, but we also usually had a lot of help, and caught some lucky breaks too. Luck had nothing to do with it, fortunate, depends on your perspective. Help...
by B. Wellington
Thu Apr 05, 2018 4:58 am
Forum: Investing - Help with Personal Investments
Topic: senior investing
Replies: 26
Views: 1902

Re: senior investing

It sounds to me that an immediate annuity (preferably inflation adjusted) would be hard to beat in this case. If it puts his income above some public assistance threshold so be it. With his limited funds I don't see a better way. I would also agree with holding a bit back for a rainy day fund (but ...
by B. Wellington
Wed Apr 04, 2018 11:43 am
Forum: Investing - Theory, News & General
Topic: Anyone Pulled the Trigger on Global Wellington/Wellesley?
Replies: 24
Views: 6499

Re: Anyone Pulled the Trigger on Global Wellington/Wellesley?

Both Domestic Wellesley and Wellington have consistently outperformed their respective index benchmarks. Why is that? I doubt it's stock selection in bull markets since we know that is so hard to beat. Is it one or more of the following: 1) Better bond selection than the Treasury heavy indexes 2) D...
by B. Wellington
Thu Mar 29, 2018 7:59 am
Forum: Investing - Theory, News & General
Topic: Anyone hold any defensive funds in their portfolio?
Replies: 41
Views: 4304

Re: Anyone hold any defensive funds in their portfolio?

Wellington
Wellesley Income
Short Term Treasuries

~4-5 years from "semi-retirement".

Note: Both W/W funds are down so far this year due to rising interest rates and a pull-back in equities. Defensive maybe, but no "safe" harbor.
by B. Wellington
Wed Mar 28, 2018 9:01 am
Forum: Investing - Help with Personal Investments
Topic: Advice for retirees.. who writes this stuff!?
Replies: 8
Views: 2142

Re: Advice for retirees.. who writes this stuff!?

" Day trading stocks is the perfect retiree activity because it’s just as complicated as you want it to be. You can trade casually, and pick up some minor gains here or there. Or, go in full-bore and make it your new job. After all, investments provide extra money, so have some fun with it." From t...
by B. Wellington
Wed Mar 28, 2018 7:25 am
Forum: Investing - Theory, News & General
Topic: Grok's LMP-4: The 3-legged stool approach to retirement planning
Replies: 114
Views: 11186

Re: Grok's LMP-4: The 3-legged stool approach to retirement planning

We're all different people in different circumstances and it would be strange indeed if all of agreed with grok's or with my retirement plan. I will merely relate my own retirement plan with no value judgement at all about whether it is right for anyone else. I retired 20.5 years ago at age 50 and ...
by B. Wellington
Tue Mar 27, 2018 12:14 pm
Forum: Investing - Theory, News & General
Topic: Grok's LMP-4: The 3-legged stool approach to retirement planning
Replies: 114
Views: 11186

Re: Grok's LMP-4: The 3-legged stool approach to retirement planning

Serious question. Is there, in fact, any real body of real-life data on the actual experiences of real retirees who have actually closely followed one or another retirement plan? My preconception is that no, I doubt that there is. Before the 401(k) became really popular, which probably means some t...
by B. Wellington
Tue Mar 27, 2018 12:03 pm
Forum: Investing - Theory, News & General
Topic: Grok's LMP-4: The 3-legged stool approach to retirement planning
Replies: 114
Views: 11186

Re: Grok's LMP-4: The 3-legged stool approach to retirement planning

No offense, but entirely too much complexity for my taste. In real life, the map is never the territory. Lots of excellent non-fiction books out there on the chasm between theory and reality. No offense taken, Not sure who said "Everything should be made as simple as possible, but not simpler." My ...
by B. Wellington
Fri Mar 23, 2018 4:51 am
Forum: Investing - Theory, News & General
Topic: Building a bridge to Social Security: When to start?
Replies: 34
Views: 4492

Re: Building a bridge to Social Security: When to start?

So, if retiring with $1 million at 65, and given Social Security at age 70 of $30k/year: Transfer 5 years x $30k from the portfolio to the bridge account, leaving $850,000. This generates a 4% SWR of $34,000, which added to $30,000/year from the bridge account provides annual income of $64,000 a ye...
by B. Wellington
Mon Mar 19, 2018 7:21 am
Forum: Investing - Theory, News & General
Topic: Best way to hold cash in retirement accounts??
Replies: 57
Views: 6975

Re: Best way to hold cash in retirement accounts??

I am setting up my retirement accounts into the form I would like them to have as I approach the retirement/withdrawal stage of things. I would like to have 10-15% of my accounts in cash/fixed form. The purpose of the cash/fixed holdings is--in the event of a bear market or sustained equities downt...
by B. Wellington
Tue Mar 13, 2018 6:07 am
Forum: Personal Finance (Not Investing)
Topic: Owner semi-absentee business
Replies: 8
Views: 1305

Re: Owner semi-absentee business

...Need help point me into the right direction as to what business to buy, pro and con. Successful semi-absentee businesses are very, very rare -- mostly the luck of owning something that later becomes popular. And that usually involved a lot of hard work during the incubation days. Stocks are one ...
by B. Wellington
Tue Mar 13, 2018 5:02 am
Forum: Investing - Help with Personal Investments
Topic: Dave Ramsey on Bonds
Replies: 107
Views: 10133

Re: Dave Ramsey on Bonds

Willy, Dave and his company also owns A LOT of Real estate which produces some major cash flow. This is something the small investor is probably not able to do, at least not on a large scale unless you are into real estate. That leaves (most) of us to rely on our bond allocation to not only produce ...
by B. Wellington
Wed Mar 07, 2018 6:00 am
Forum: Investing - Theory, News & General
Topic: Looking for an example of a fund which has beat its index for 30 years
Replies: 93
Views: 9974

Re: Looking for an example of a fund which has beat its index for 30 years

The problem with beating a benchmark index with any significant amount also comes down to timing. For example, investing all (or most) of your money on the inception date or very good timing of your DCA contributions. I would wager that if you missed even (a few) of the very best days of the fund an...
by B. Wellington
Thu Feb 22, 2018 8:25 am
Forum: Investing - Help with Personal Investments
Topic: Young Investor: Investing In A Bear Market
Replies: 29
Views: 3007

Re: Young Investor: Investing In A Bear Market

Your investment horizon is not 25 or 30 years, it’s 55-60 years! Why? Because you are not going to withdraw all of your assets on Day 1 of retirement to plunk it into inflation ravaged cash. Some portion of your assets need to be continually invested to stay ahead of inflation - equities are your b...
by B. Wellington
Thu Feb 22, 2018 7:02 am
Forum: Investing - Help with Personal Investments
Topic: Young Investor: Investing In A Bear Market
Replies: 29
Views: 3007

Re: Young Investor: Investing In A Bear Market

Invest exactly as you are today, I.e. whatever allocations you have deemed comfortable. Invest as much as you can as early and often as you can. Ignore the noise and DO NOT SELL . If it looks like the market will collapse, go down with the ship and still do not sell, trust me at that point we have ...
by B. Wellington
Wed Feb 21, 2018 5:59 am
Forum: Investing - Help with Personal Investments
Topic: Where to put 6 months of living expenses(emergency fund) ?
Replies: 24
Views: 4111

Re: Where to put 6 months of living expenses(emergency fund) ?

Thanks all. Our mortgage will be paid off in August. I work part time and my wife is going to switch to part time soon. Once the mortgage is paid off, do you think the emergency fund of $50,000 is excessive and should be reduced? Many who retire, keep an average of 1 to 2 years of EXPENSES in money...
by B. Wellington
Tue Feb 20, 2018 10:44 am
Forum: Investing - Help with Personal Investments
Topic: Where to put 6 months of living expenses(emergency fund) ?
Replies: 24
Views: 4111

Re: Where to put 6 months of living expenses(emergency fund) ?

We currently have about 6 months of living expenses(our emergency fund, in case we lost our jobs, etc.) in the Vanguard Prime Money Market fund. Is this a good choice, or is there a better choice ? Maybe some sort of account that earns more interest for us? We also use this account occasionally to ...
by B. Wellington
Tue Feb 13, 2018 1:17 pm
Forum: Investing - Help with Personal Investments
Topic: Did you learn anything from the market correction?
Replies: 160
Views: 13374

Re: Did you learn anything from the market correction?

P.S. Am I the only person who sees a phrase like "eight year bull run" and thinks "first battle of the Civil War?" (Revealing myself as a Yankee, of course...) an 8 year Manassas? Continuing onto Culpeper or Fredericksburg? :beer In response to the OP, someone mentioned experience is GOLD. Your per...
by B. Wellington
Mon Feb 05, 2018 7:50 am
Forum: Investing - Help with Personal Investments
Topic: Why did BND drop with no interest rate increase and what's in store short term?
Replies: 19
Views: 2314

Re: Why did BND drop with no interest rate increase and what's in store short term?

I have no idea what it will do for the next two months. The market price is what it is and will change according to events we can't predict. It may bounce back or it may continue to drop in response to higher interest rates. I would predict that over the long term it will provide stability with a r...
by B. Wellington
Fri Feb 02, 2018 7:32 am
Forum: Investing - Theory, News & General
Topic: Retreat to cash
Replies: 335
Views: 64742

Re: Retreat to cash

I am 60/30/10 (s/b/cash). I wish in hindsight I was 100% stocks. I sleep well at night with 10% cash. Thankfully, my marginal utility of risk is small since I am at or near "my number". I am reminded of the quote "pigs get fat, and hogs get slaughtered". ^^^We are in the same boat gooenyou. Very cl...
by B. Wellington
Wed Jan 31, 2018 11:06 am
Forum: Investing - Theory, News & General
Topic: looking for positive experiences transferring to Vanguard
Replies: 39
Views: 2878

Re: looking for positive experiences transferring to Vanguard

We have been with VG for over 25 years now. I consolidated several accounts over the years from other institutions as well as company stock etc. Have had great customer service. (Even a personal call back making sure that I received the information on transferring IRA's and paper stock certificates.)
by B. Wellington
Tue Jan 30, 2018 8:26 am
Forum: Investing - Theory, News & General
Topic: When did the bad news start in 2008?
Replies: 135
Views: 14141

Re: When did the bad news start in 2008?

I *knew* it was bad when ... MegaCorp CFO sent an email to all employees asking them reduce use of printers Similar thing here - when the free vending machines were no longer free :D There were a number of issues that "should have" raised a red flag: People in my circle were buying homes that they ...
by B. Wellington
Tue Jan 23, 2018 8:22 am
Forum: Investing - Theory, News & General
Topic: Kitces article: A cash bucket in retirement? Nope
Replies: 150
Views: 13402

Re: Kitces article: A cash bucket in retirement? Nope

Like many others quickly approaching "retirement", I have been reading A LOT of papers and studies on this topic. In particular, Christine Benz and Jane Bryant Quinn, who both make good points concerning a cash "bucket" and how to replenish that spending fund. I am not a big fan of holding cash as w...
by B. Wellington
Tue Jan 16, 2018 8:24 am
Forum: Investing - Help with Personal Investments
Topic: I'm hooked
Replies: 22
Views: 4385

Re: I'm hooked

Just wanted to say that I'm blown away at the knowledge of this forum and the help that people are willing to give.. I literally came across this site yesterday searching through Google trying to wrap my head around retirement/savings. Because I felt like I wasn't saving correctly.. I have learned ...