Search found 1563 matches

by NYBoglehead
Fri Jul 11, 2014 5:15 pm
Forum: Personal Finance (Not Investing)
Topic: 15 vs 30 yr fixed, or 5/1 ARM
Replies: 16
Views: 3354

Re: 15 vs 30 yr fixed, or 5/1 ARM

If could afford the monthly payment I like the 15 year. Looks like you've got significant cash savings and my math tells me a good chunk of that will remain even after making the down payment on the house. But that's just me, I try to extinguish debt in any form as soon as possible, I think the 30-year mortgage is still a pretty good deal, and you mentioned making larger payments to get an accelerated payoff. So if you can afford the monthly payment, why go for the higher interest rate?
by NYBoglehead
Wed Jul 02, 2014 8:38 am
Forum: Investing - Theory, News & General
Topic: Dividend Distribution Strategies
Replies: 13
Views: 1765

Re: Dividend Distribution Strategies

^Somewhere around 50% of all dividends are received in tax-advantaged accounts, so continually paying taxes on them is not exactly true. While I am not a dividend chaser, I think too frequently their importance is dismissed. Fund values go down when they are paid, stock prices go down proportionally when they are paid, all well and good, but over the long haul dividends provide a substantial portion of one's overall return. Also, if one has sufficient assets, dividends can help weather bear markets by preventing investors from having to sell in down markets, one can receive the quarterly dividends without having to initiate any transactions. As it pertains to individual companies (not that Bogleheads buy individual names) the dividend can p...
by NYBoglehead
Wed Jul 02, 2014 7:34 am
Forum: Personal Investments
Topic: 2nd Opinion on Portfolio - Please
Replies: 7
Views: 1304

Re: 2nd Opinion on Portfolio - Please

You'd be able to save a significant amount of money by moving his rollover IRAs to Vanguard. Paying 69 bps and 85 bps on a substantial balance is costing you money, you can get TSM Admiral for 5 bps and TISM Admiral for 15 bps. Just a thought.

Also think you could do better by throwing some of that cash into the market. That said, your portfolio value is significant so if keeping that much in cash helps you sleep better then by all means keep that much. But I'll reiterate that you can save a boatload of money on the ER side by switching over those IRAs to Vanguard.
by NYBoglehead
Wed Jul 02, 2014 7:31 am
Forum: Investing - Theory, News & General
Topic: Vanguard - Energy Fund
Replies: 31
Views: 6556

Re: Vanguard - Energy Fund

No desire to add another Fund and become overweight in the energy sector. Energy is appropriately weighted in the TSM and TISM so I think I'll stick to that.
by NYBoglehead
Wed Jul 02, 2014 7:29 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard - How America Saves 2014
Replies: 16
Views: 4069

Re: Vanguard - How America Saves 2014

I agree with some of the posts questioning just how much insight these reports actually provide. Much attention is paid to average 401(k) balances, but what is frequently overlooked is the assets held in IRAs from 401(k) rollovers. There is also a significant amount of money held in Roth IRAs that doesn't get captured in the 401(k) analysis.
by NYBoglehead
Wed Jul 02, 2014 7:25 am
Forum: Personal Investments
Topic: Hitting "The Number" too early
Replies: 49
Views: 7652

Re: Hitting "The Number" too early

No such thing as hitting the number "too early." While of course the number is always subject to the next market crash, continuing to contribute is also padding the number against falling short of what you'll actually use/need.
by NYBoglehead
Wed Jul 02, 2014 5:56 am
Forum: Personal Investments
Topic: Asset Allocation - Retirement Paid For
Replies: 10
Views: 1415

Re: Asset Allocation - Retirement Paid For

Personal decision. I'm in the camp that would probably lean more to the conservative side since there is limited/no need for risk. As others have already said, it really depends on whether you plan to leave any money to heirs, or if you have any lofty aspirations for big purchases down the road that are outside of your normal expenses.

Either way its a great problem to have!!
by NYBoglehead
Wed Jul 02, 2014 5:52 am
Forum: Personal Finance (Not Investing)
Topic: I'm worthless [Net worth is zero]
Replies: 33
Views: 6592

Re: I'm worthless

Also keep in mind home equity. Not sure when or at what price point you bought, but if your outstanding mortgage balance is less than the value of your home you have home equity. And that balance will go down monthly while your investment accounts gradually grow.
by NYBoglehead
Mon Jun 16, 2014 5:16 pm
Forum: Personal Finance (Not Investing)
Topic: Advice re: Fixed Annuity Contract
Replies: 7
Views: 801

Re: Advice re: Fixed Annuity Contract

Couple of questions to make an intelligent answer. Is this a deferred income fixed annuity? Is this a guaranteed withdrawal income type? Do you currently have a health issue? What is the gain up today? Can you replace this policy with something comparable? What is making you change your mind? I ask these questions and more in our own personal accounts whether they be a vanguard index, cash stash, or insurance contract. Yes, it is a deferred fixed annuity. Has a minimum of 2% annual interest, max of 4%. Effective yield right now is 2.2%. I don't have any health issues. The gain up to today is roughly $600. I really haven't changed my mind on anything. Again, I purchased this 7+ years ago after I was already maxing out Roths and this seemed ...
by NYBoglehead
Mon Jun 16, 2014 2:41 pm
Forum: Personal Finance (Not Investing)
Topic: Advice re: Fixed Annuity Contract
Replies: 7
Views: 801

Advice re: Fixed Annuity Contract

Bogleheads, I'm back after a long absence from the site (work-related, my interest has never waivered) and would like to get some advice from fellow Bogleheads regarding a fixed annuity that I own. Details: Purchased it ~7 years ago while I was in the military, had already been maxing out Roth IRAs and at the time it didn't make sense to contribute to TSP (no Roth option at the time and considerable amount of time overseas meant my tax liability was extremely low). That said, it's current value is ~7,000. I have not contributed to it for years, and it earns next to nothing. I do not plan on ever adding more to it, so this will not be creating any sort of large income stream when retirement comes (30 years old now, planning on retirement at ...
by NYBoglehead
Tue Apr 30, 2013 3:55 pm
Forum: Personal Investments
Topic: you're done accumulating; what's next?
Replies: 9
Views: 2155

Re: you're done accumulating; what's next?

I'm nowhere near that amount, but I think it should be fairly easy for most of us. For starters, the exemption is $5.12 million in 2013, which I believe is indexed to inflation so even at 2% inflation you can count on it going up 100k+ annually. So if you desire to leave a large estate behind I'd set aside the money up to the exemption and look at the remainder of my portfolio. You can gift some away, donate to charity, spend it on things that you denied yourself in order to accumulate that match. I don't think its a flaw to want to leave behind an estate, but think that you should enjoy what you have saved while you are still around. This doesn't mean endless consumption, but I think giving it away while you are still alive would be much m...
by NYBoglehead
Tue Apr 30, 2013 3:52 pm
Forum: Personal Investments
Topic: slowing down on the 401k for taxed accounts
Replies: 6
Views: 1125

Re: slowing down on the 401k for taxed accounts

At 36 I think you've still got time to build up taxable assets later on to access between 55-59. I'd focus on continuing to max out the 401k and Roth, and then maybe at 40 re-evaluate. If you project that your tax-advantaged space will provide the retirement you want, continue contributing up to the match of course and, if it is something that you want to do, start contributing to a taxable account that you can enjoy without having to reach a certain age.
by NYBoglehead
Tue Apr 30, 2013 3:49 pm
Forum: Personal Investments
Topic: 401k Selections - best of a poor lot
Replies: 4
Views: 1344

Re: 401k Selections - best of a poor lot

+1 on your choices not being that bad. The S&P 500 index fund at 16 bps is a pretty awesome choice. I'd contribute more than just the match if you can, the ER is not that high at all. And while the JPM bond fund at 74 bps is considered outrageous for us Bogleheads, its not a terrible option if you need to put some into that as well to maintain your AA.
by NYBoglehead
Wed Apr 24, 2013 5:04 pm
Forum: Personal Finance (Not Investing)
Topic: BigMoney Jobs(high school student wants to be rich some day)
Replies: 102
Views: 13935

Re: BigMoney Jobs(high school student wants to be rich some

For starters, have him to his best to stay of debt (to include student loans). If loans are necessary to pay for school, try to get rid of them as fast as possible as debt is the biggest drag on people accumulating wealth. Next, since he's in high school and already thinking about money, he should contribute to a Roth IRA and work while attending college in order to contribute annually to the Roth. While there is nothing wrong with making money, I'd ask him why he wants to be an investment banker. If the thought of brokering deals and evaluating M&A, etc gets him excited then it very well might be a good fit. But if the money alone is the sole motivation, he might find it to be disappointing. The fact is that there are a lot of jobs tha...
by NYBoglehead
Wed Apr 24, 2013 4:58 pm
Forum: Investing - Theory, News & General
Topic: IRA vs. 401k Contribution Limits. WHY so different?
Replies: 21
Views: 25074

Re: IRA vs. 401k Contribution Limits. WHY so different?

I'm just taking a guess, but I figure that between the 401k at 17.5k and IRA at 5.5k an individual can put 23k (plus any employer contributions) into tax-advantaged space. Which if done over the course of a working lifetime can lead to some serious cash over time. In reality if most people contributed the 23k total annually we wouldn't have a retirement crisis at all.

The reason why these limits will only increase annually with inflation is that the overwhelming majority of people don't even come close to maxing out their tax-advantaged space. So while many of us in the middle class do our best to max out this space, the fact of the matter is that there is not widespread demand to raise the contribution limits.
by NYBoglehead
Wed Apr 24, 2013 4:53 pm
Forum: Personal Investments
Topic: Need investing advice, young investor
Replies: 15
Views: 1287

Re: Need investing advice, young investor

I recommend going with Target Retirement Fund. It is more diversified than the STAR Fund and has a lower expense ratio. That said, I recommend you rethink your AA. At 18 years old you have a VERY LONG time to go. 4 decades+ before you will even be able to withdraw from an IRA. You will only be 30 years old in 2025, so to invest in the Target 2025 Fund is likely a very bad idea. While a more conservative portfolio won't experience as wild swings as more equity heavy portfolios will, don't assume that being overly conservative is not risky in itself. You are risking that your returns will not be sufficiently high to provide a secure retirement. That said, your risk tolerance is your risk tolerance, and the most important thing is to SAVE SAVE...
by NYBoglehead
Sun Apr 21, 2013 8:15 am
Forum: Investing - Theory, News & General
Topic: Why are you a boglehead ???
Replies: 60
Views: 6224

Re: Why are you a boglehead ???

Because I work to hard to have my money pay for some Wall St big shot's next Maserati. I'd rather save enough to live a comfortable life without having my money sucked up by the vultures.
by NYBoglehead
Sat Apr 20, 2013 8:40 am
Forum: Personal Investments
Topic: Help w/ a $55M portfolio?
Replies: 51
Views: 9290

Re: Help w/ a $55M portfolio?

With that much money I'd want some serious allocation to tax-exempt bonds, given that you are in very high tax brackets at the federal and state level. I'll let others chime in on the estate law components as there are things that come with that high of a net worth that I am not qualified to comment on.
by NYBoglehead
Sat Apr 20, 2013 8:39 am
Forum: Personal Investments
Topic: Pay extra on principal vs. roth ira (but wait....)
Replies: 9
Views: 3070

Re: Pay extra on principal vs. roth ira (but wait....)

^If your interest rate is 3.25%, I would NOT pay extra on the mortgage. That is very low, and with 27 years left on it you should let gradual inflation erode the % of your monthly income devoted to the mortgage. Max out all tax-advantaged space before you even think of making extra mortgage payments. Even then it might not be a good idea, but that can be re-visited once you are maxing out the tax-advantaged space.
by NYBoglehead
Sat Apr 20, 2013 8:00 am
Forum: Personal Investments
Topic: Pay extra on principal vs. roth ira (but wait....)
Replies: 9
Views: 3070

Re: Pay extra on principal vs. roth ira (but wait....)

^Agreed. I'd also say it depends on your interest rate. If you bought the house in the mid 2000s you very well may be paying 5-6% or higher. If you got it fairly recently you are likely paying below 4%. If you can't refinance, I'd say make extra payments on the 5% plus mortgages, but not the sub 4% mortgages. If you itemize deductions your effective mortgage rate is likely lower as well.
by NYBoglehead
Fri Apr 19, 2013 8:21 pm
Forum: Personal Investments
Topic: Portfolio Review
Replies: 21
Views: 2552

Re: Portfolio Review

I believe you are making a big mistake by having so much money in the health care sector. If you buy TSM you will have exposure to the health care sector, I think it is incredibly risky to be tilting so much to one particular sector. I agree!! Which is why I'm here asking questions on a good way to move forward. 3-fund portfolio baby. For you, I recommend 50% TSM, 20% TISM, and 30% TBM. You can also tweak holdings in the Roth since you also have the TSP, which is absolutely awesome. Maybe you want to be stock heavy in the TSP and bond heavy in the Roth, since you'll likely want to take distributions in retirement first from the TSP and then from the Roth, so you'll gradually be getting more aggressive as you age. Don't make sector bets.
by NYBoglehead
Fri Apr 19, 2013 5:21 pm
Forum: Personal Investments
Topic: Portfolio Review
Replies: 21
Views: 2552

Re: Portfolio Review

I believe you are making a big mistake by having so much money in the health care sector. If you buy TSM you will have exposure to the health care sector, I think it is incredibly risky to be tilting so much to one particular sector.
by NYBoglehead
Tue Apr 16, 2013 4:42 pm
Forum: Personal Investments
Topic: Max 401k?
Replies: 2
Views: 1016

Re: Max 401k?

First, I'd double-check on the loads. A lot of funds that are load funds to retail investors do not apply the sales loads to 401k investors.

Even without the loads, those ERs are absolutely terrible. I would definitely contribute up to the match, since that is a guaranteed return. After that, with excessive fees I wouldn't contribute above the match.

I would max out a Roth IRA every year and then start a taxable account. I'd also look to purge any debt, including the mortgage if you have extra cash flow.
by NYBoglehead
Tue Apr 16, 2013 1:21 pm
Forum: Personal Consumer Issues
Topic: College Financial Aid assistance
Replies: 13
Views: 1550

Re: College Financial Aid assistance

Not sure what state you're in and what the tax benefits are. I know in NY you can deduct up to $10k in 529 contributions for MFJ couples each year. Even if you had the cash on hand, you can contribute $10k to the 529 and pay the school from the 529 the following day (using a MMF to prevent change in value while doing this). If you are in the 6.45% bracket, that'll trim $645 of your state income tax liability for that year.
by NYBoglehead
Tue Apr 16, 2013 1:17 pm
Forum: Investing - Theory, News & General
Topic: VG Pays $28k for "Movers & Shakespeare"
Replies: 30
Views: 3679

Re: VG Pays $28k for "Movers & Shakespeare"

Even the most cost-efficient companies will make unwise expenditures. Was this a waste of $28k? Who knows, but what I do know is that my portfolio at Vanguard has a weighted ER of less than 10 bps, so I'm not complaining.
by NYBoglehead
Tue Apr 16, 2013 1:12 pm
Forum: Personal Investments
Topic: 3-fund portfolio twice?
Replies: 15
Views: 2131

Re: 3-fund portfolio twice?

I understand the desire to not have all your money "locked up" inside a 401k. That said, at 24 I think it is unwise to not max out tax-advantaged space first. Time is your biggest asset right now. You have the ability to set yourself up for a secure retirement by maxing out a Roth IRA and trying to max out a 401k. Taxable investing can come later.
by NYBoglehead
Mon Apr 15, 2013 1:44 pm
Forum: Personal Finance (Not Investing)
Topic: Maryland "rain tax"
Replies: 11
Views: 2887

Re: Maryland "rain tax"

Why is calling it a "rain tax" creative? I guess in your judgment a "fee" is not creative?

Here in NY we have a lot of tolls on our roads. They aren't really tolls but instead are taxes. Ask anyone who lives here about the absurd debate about replacing the Tappan Zee Bridge. Turns out all the toll collections over the years don't go to infrastructure maintenance but instead to general governmental expenditures. I'm sure the same thing will happen in MD with these newly collected rain "management fees."
by NYBoglehead
Mon Apr 15, 2013 1:39 pm
Forum: Investing - Theory, News & General
Topic: Are Americans over-invested in Equities?
Replies: 15
Views: 4297

Re: Are Americans over-invested in Equities?

I think the answer may be philosophical rather than directly financial. Most European counties are more Socialist than the US e.g. all European countries have socialized/government medical care. In some countries such as France, people are openly hostile to companies in some industries such as oil companies and banks. To some people in European countries it is "politically incorrect" or "philosophically corrupt" to invest in private enterprise and root for its success. We are much more open to private enterprise in this country and stock ownership is much more widespread....Gordon ----------- This is a very narrow view of "some people in Europe" . . . a very American view. In my opinion, folks in European coun...
by NYBoglehead
Mon Apr 15, 2013 11:12 am
Forum: Personal Consumer Issues
Topic: Poll: Boglehead travel
Replies: 41
Views: 3593

Re: Poll: Boglehead travel

I don't take any now or plan on taking any in the next few decades. I'd rather retire earlier and take more frequent, inexpensive weekend trips/excursions.
by NYBoglehead
Mon Apr 15, 2013 7:51 am
Forum: Personal Finance (Not Investing)
Topic: Maryland "rain tax"
Replies: 11
Views: 2887

Re: Maryland "rain tax"

I would suggest this is indeed actionable. Yet another tax/fee that doesn't exist elsewhere, should definitely be of interest to those looking to retire in Maryland or build their lives in Maryland. These are always very slippery slopes of course, I'm sure a "rain tax" would have been unimaginable not that long ago and here it is. Should be interesting to see what the next creative tax/fee is added going forward.
by NYBoglehead
Mon Apr 15, 2013 6:31 am
Forum: Personal Investments
Topic: After Tax 401(k) contribution
Replies: 18
Views: 9003

Re: After Tax 401(k) contribution

$17,500 is you are under 50.

That number is for all 401k contributions, in any mix of Roth and Traditional.
by NYBoglehead
Sun Apr 14, 2013 7:08 pm
Forum: Personal Investments
Topic: Bond or not?
Replies: 32
Views: 3258

Re: Bond or not?

If you are a long-term investor, I wouldn't worry about it. The monthly re-invested dividends will be buying shares on the cheap if the NAV goes down, same thing for your semi-monthly 401k contributions.
by NYBoglehead
Sun Apr 14, 2013 7:04 pm
Forum: Personal Finance (Not Investing)
Topic: Roth 401k high income
Replies: 12
Views: 3349

Re: Roth 401k high income

Recommend going with the Traditional 401k if you are in the higher tax brackets.
by NYBoglehead
Fri Apr 12, 2013 4:51 pm
Forum: Personal Investments
Topic: Portfolio Review - All Help Appreciated
Replies: 5
Views: 1149

Re: Portfolio Review - All Help Appreciated

Seems to me that you can significantly lower the ER in your 401k going with Vanguard Institutional Index, Extended Market Index and the PIMCO Total Return Bond Fund. Just a thought, the Target Date Fund you are currently in isn't terrible in ER but you can definitely get your effective cost ratio down. You should definitely do the Roth for 2012. No doubt about it, no reason not to do it. Contribute to whatever fund gets you to your target AA. As far as AA goes, at 40 I'd probably be no more aggressive than 70/30, with 25% of your equity portion devoted to international. 60/40 is closer to the "age in bonds" guideline, but that is only a guideline and not an unbreakable rule. Looks to me like you're on track to do very well. If you...
by NYBoglehead
Fri Apr 12, 2013 4:13 pm
Forum: Personal Investments
Topic: Inheriting money, don't want to [mess] anything up
Replies: 48
Views: 7348

Re: Inheriting money, don't want to [mess] anything up

You have an awful lot of money coming your way. As the poster above noted, I recommend buying real estate as a place to live, don't do it purely for an investment (my opinion).

You should be maxing out all tax-advantaged investment space (401k/Roth IRA) and pay off any student loans or other debt.

After that I don't think you can go wrong implementing the 3-fund portfolio with some of the money, using tax-exempt munis for the bond portion for tax efficiency.
by NYBoglehead
Fri Apr 12, 2013 2:19 pm
Forum: Investing - Theory, News & General
Topic: [Vanguard Announces Expense Ratio] ER Changes
Replies: 32
Views: 3557

Re: ER Changes

I couldn't possibly care less about improving the past performance feature. Better insights going forward? Gimme a break, most people here are closely mirroring a 3-fund portfolio. I'm making changes based on maintaining my AA, not an analysis of the previous 5 years.
by NYBoglehead
Fri Apr 12, 2013 11:00 am
Forum: Personal Finance (Not Investing)
Topic: How important is a good school district?
Replies: 65
Views: 6168

Re: How important is a good school district?

snyder66 wrote:I think a lot depends on you and your children. If you have bright children, they will do fine in an "average" school district. By the way, Who is the one judging this average-ness anyway? I personally think it is a bit overrated and hyper=parenting to a point.
Agree with this point. I think people get carried away with this sometimes. I should have specified in my earlier post that I am wrestling with a decision about an average school district against one that is rated as poor.
by NYBoglehead
Fri Apr 12, 2013 10:58 am
Forum: Investing - Theory, News & General
Topic: [Vanguard Announces Expense Ratio] ER Changes
Replies: 32
Views: 3557

Re: ER Changes

^I don't think they're getting carried away. While I agree at a certain point the reduction in cost isn't necessary and could probably be put to better use in servicing customers, I don't think they are there yet.
by NYBoglehead
Fri Apr 12, 2013 10:50 am
Forum: Personal Finance (Not Investing)
Topic: How important is a good school district?
Replies: 65
Views: 6168

Re: How important is a good school district?

Private schools in the area would probably run to about $25k/yr. It would seem that if I put that 25K into a higher mortgage payment in a better school district, that would be a better use of the money, but am open to arguments. I am wrestling with this right now in making a first-time home purchase. I'm leaning towards paying more in the better school district, since I calculate that having to pay for private schools in the future will be far more expensive over the long haul than paying more for the house right now. In addition to that, if you will still have the ability to max out tax-advantaged space by doing this, you are still going to be in awesome shape. You mention that your taxable investing contributions will go down a lot, but ...
by NYBoglehead
Fri Apr 12, 2013 10:32 am
Forum: Personal Investments
Topic: Help choosing between 4 bond funds in 401k
Replies: 16
Views: 2953

Re: Help choosing between 4 bond funds in 401k

I'd go with the PIMCO Fund or go with TBM in my Roth IRA and stick to just the equity funds in the 401k (providing they are decent).
by NYBoglehead
Fri Apr 12, 2013 7:11 am
Forum: Investing - Theory, News & General
Topic: Why have an inflation target?
Replies: 8
Views: 1067

Re: Why have an inflation target?

I believe the point of the 2% target is to keep it below 2%, not at least 2%.

I'm not an economist (not that they've ever proven to have all the answers though) but I think that some modest inflation is inevitable with an expanding economy. As there is more money chasing after the same amount of goods and services prices will rise. Some modest inflation isn't all that bad and it actually helps borrowers out since they are repaying their debts with future dollars that aren't as valuable. That is also why deflation is so bad, since it would have the exact opposite effect.
by NYBoglehead
Thu Apr 11, 2013 11:30 am
Forum: Personal Investments
Topic: Just a little bit
Replies: 1
Views: 397

Re: Just a little bit

Never too late. Not sure what your options are in the plan or what the rollover criteria/eligibility is for 457b plans. If you are able to roll it over a good place to start would be a Target Retirement Fund that has an AA that meets your risk tolerance and objectives.

You mentioned you can live off just your pension, which is great. So any portfolio returns should provide for some of the frills in retirement. You also mention that you are saving $1200/mo while maintaining a small car loan. I'd knock out that car loan ASAP and your monthly surplus will be even larger.
by NYBoglehead
Thu Apr 11, 2013 11:27 am
Forum: Personal Investments
Topic: Portfolio help requested re allocation and expenses
Replies: 8
Views: 955

Re: Portfolio help requested re allocation and expenses

I think 75/25 is way too aggressive for you. While you have nice pension income, in my opinion there is no need to take added risk. Everyone wants to increase their stock allocation when the market is on fire, but I think you should pick an AA for the long haul and stick with it no matter what. So to answer Question #1, I don't think 75/25 is too conservative, I believe it is too aggressive. Question #2: I wouldn't try to pick individual sectors. I see you used the word "bump" in the question. Picking an individual sector is just as likely to be a drag on your returns as it is to add a bump. I'd stick with the big 3: TSM, TISM and TBM. Given the lower ER of the TSP funds, you might be able to get a way with just TSM and TISM at Va...
by NYBoglehead
Thu Apr 11, 2013 11:16 am
Forum: Personal Investments
Topic: Single Fund For A Retiree
Replies: 4
Views: 1146

Re: Single Fund For A Retiree

The Vanguard Target Retirement Income Fund consists of TBM, TSM, TISM, TIPS and a small allocation to MM. ER of 16 bps, it seems to a nice place to have an all-in-one approach for someone looking for a one-fund solution. At ~30% equities, ~65% fixed income and ~5% cash it seems to be a very reasonable AA for someone who is also collection social security benefits or a pension.
by NYBoglehead
Thu Apr 11, 2013 9:31 am
Forum: Investing - Theory, News & General
Topic: Are you adding more risk (in order to get more return)?
Replies: 30
Views: 3381

Re: Are you adding more risk (in order to get more return)?

I think the "age in bonds" has always been intended as a guiding principle and not an absolute. I believe Jack also says that one should never be more conservative than 20/80, so needless to say it appears that he doesn't follow age in bonds to the letter himself. Become more conservative as you age and don't take unnecessary risk.

I also think taking excessive risk later in life because you were too conservative earlier in your investing life is a recipe for disaster.
by NYBoglehead
Thu Apr 11, 2013 9:03 am
Forum: Personal Consumer Issues
Topic: Converting to gas heat
Replies: 29
Views: 3004

Re: Converting to gas heat

Not sure how much it would cost you, but I'm willing to bet that the value of your home will increase as a result. Right now I am in the market for a house. All else being equal, gas heat is exponentially more attractive than oil heat. For starters, the gas equipment in all of the houses have been far newer than the oil burners, so the prospective buyer calculates that there is a longer time horizon before needing repairs. Second, every estimate I've gotten is that gas is ~30% cheaper than oil, another attractive component when making a home-buying decision.
by NYBoglehead
Thu Apr 11, 2013 7:10 am
Forum: Investing - Theory, News & General
Topic: Charles Ellis says stay out of bonds
Replies: 122
Views: 15112

Re: Charles Ellis says stay out of bonds

rkhusky wrote:If all one cares about are the dividends and don't plan to sell, who cares if the NAV drops because interest rates go up. Over time you will get more dividends.
True, and if the NAV goes down you'll be able to soak up shares on the cheap if you're still in the accumulation phase. A lot of these finance gurus preach having a backbone and moving money into stocks when the market crashes, to me it only makes sense that we do the same with bonds/bond funds when a period of rising rates and dropping NAVs occurs.
by NYBoglehead
Thu Apr 11, 2013 7:01 am
Forum: Investing - Theory, News & General
Topic: Big S&P Gains almost as stressful as Big Drops
Replies: 48
Views: 5372

Re: Big S&P Gains almost as stressful as Big Drops

Don't let emotions drive investment decisions. As others have already noted, on an inflation-adjusted basis we are nowhere near the all-time highs. Nominal value vs. real value. Unless you are retired and want to take a distribution from your recently achieved gains, I see no point in doing anything other than staying the course.
by NYBoglehead
Tue Apr 09, 2013 9:15 pm
Forum: Personal Finance (Not Investing)
Topic: Can I retire?
Replies: 30
Views: 5905

Re: Can I retire?

Looks to me like you can definitely retire. You have a nice pension, have health care covered, and won't need more than 2% annually from your portfolio (which you expect to receive in dividends/interest alone).

I'd have your husband delay Social Security for as long as possible in order to maximize the benefit. I'm sure in the earlier years of retirement you could secure a part-time job if you felt that you needed more money to maintain the lifestyle you want, but it looks like you'll be all set.

Best of luck, enjoy retirement!
by NYBoglehead
Tue Apr 09, 2013 9:09 pm
Forum: Personal Investments
Topic: Which Index Fund to choose?
Replies: 19
Views: 1553

Re: Which Index Fund to choose?

I am a fan of the Vanguard Total Stock Market Index fund. Low ER, provides exposure to the entirety of the US equity market.