Search found 184 matches

by mikem
Sat Oct 31, 2015 8:33 am
Forum: Personal Investments
Topic: Investing disagreements with spouse
Replies: 86
Views: 10914

Re: Investing disagreements with spouse

My wife is risk adverse and I am the opposite. So we compromise on a Target Date Fund that is 50/50(stocks/bonds), which is probably appropriate for our ages. Its arriving at an equitable compromise that makes marriage work,especially over long periods of time :D
by mikem
Sat Oct 31, 2015 8:23 am
Forum: Personal Finance (Not Investing)
Topic: Changes to Social Security
Replies: 477
Views: 72093

Pending Social Security Changes

[Thread merged into here, see below. --admin LadyGeek] I am preparing to retire in approx 2 yrs. I subscribed to "Maximize My Social Security" in order to determine the best filing status for my personal situation using their software. I was notified yesterday that the budget bill passed ...
by mikem
Fri Oct 30, 2015 9:44 am
Forum: Personal Finance (Not Investing)
Topic: Did I make right choice on Pension vs. Lump sum
Replies: 36
Views: 4806

Re: Did I make right choice on Pension vs. Lump sum

I have this decision to make in 2 years. As there is long life on both sides of my family(wife and I ), I feel sure the joint annuity will be the best decision for us. I believe you made the right decision for mutual protection. Although I am a firm believer in the 3 fund portfolio, I do not believe...
by mikem
Thu Sep 10, 2015 9:42 am
Forum: Personal Investments
Topic: Wellesley for next 20+ years in IRA?
Replies: 47
Views: 8211

Re: Wellesley for next 20+ years in IRA?

Ally Bank has a very good step by step tutorial on creating a CD ladder including projected returns over the course of the ladder.
by mikem
Sat Aug 29, 2015 8:41 am
Forum: Personal Investments
Topic: Anyone use a different target retirement year then when they will retire???
Replies: 18
Views: 1936

Re: Anyone use a different target retirement year then when they will retire???

I initially bought into the Target Date 2015 fund with plans to retire this year. I find myself not really interested in retiring yet and will probably change to a fund further out as it is more suited to my risk tolerance.
by mikem
Sat Aug 29, 2015 8:27 am
Forum: Personal Investments
Topic: If stocks dropped 30% next Monday, would you rebalance?
Replies: 103
Views: 9452

Re: If stocks dropped 30% next Monday, would you rebalance?

I wrap myself in a "security blanket" that VG will re-balance my Target Retirement and Life-Cycle funds. But Livesoft's question now makes me wonder exactly what triggers VG to re-balance these type funds. Is it done daily,monthly or when a band is broached ? On a different note, I would t...
by mikem
Mon Mar 16, 2015 8:40 am
Forum: Personal Investments
Topic: Chosing Mutual Funds: Indexed or Managed
Replies: 9
Views: 1312

Re: Chosing Mutual Funds: Indexed or Managed

What I have seen with managed funds that in order to justify the increased cost (expense ratio) that you may be exposed to greater risk in an attempt to increase yield.
by mikem
Mon Mar 16, 2015 8:34 am
Forum: Personal Investments
Topic: Target Retirement Income Fund vs 3-fund portfolio
Replies: 12
Views: 3180

Re: Target Retirement Income Fund vs 3-fund portfolio

i was on the telephone last week with Vanguard and the rep said that admiral share pricing was being considered for the target retirement series of funds. Although he would not confirm it would be a weighted average of of the admiral share price of the included funds, he did say that a slightly redu...
by mikem
Mon Mar 09, 2015 6:13 pm
Forum: Personal Investments
Topic: Want to invest with Vanguard but not comfortable with....
Replies: 79
Views: 8046

Re: Want to invest with Vanguard but not comfortable with...

Possibly a compromise. I spent 3 hours last week at the Edward Jones "brick and mortar" store discussing where to invest a fairly large lump sum. After the dog and pony show, advisory fees were 1.35% (discounted especially for me) and weighted average for the the 31 mutual fund portfolio w...
by mikem
Mon Sep 29, 2014 10:42 am
Forum: Personal Investments
Topic: Need advice on investment with loaned money
Replies: 12
Views: 1240

Re: Need advice on investment with loaned money

I would not risk my relationship with a family member by investing money borrowed from him/her/them.
by mikem
Mon Sep 29, 2014 10:24 am
Forum: Personal Investments
Topic: R u selling PIMCO bond fund
Replies: 25
Views: 3947

Re: R u selling PIMCO bond fund

I only own a small holding in his (Gross)fund(20K) but I do plan to sell and increase my holding of Vanguards Total Bond. That way I wont have to worry about what a shooting star does/doesnt do.
by mikem
Wed Oct 23, 2013 10:23 am
Forum: Personal Investments
Topic: Investors Business Daily...worthwhile?
Replies: 18
Views: 4997

Re: Investors Business Daily...worthwhile?

Friend of mine gives me all his IBDs .....they go in the cat litter box unread. :D
by mikem
Thu Oct 17, 2013 9:13 am
Forum: Investing - Theory, News & General
Topic: Government Shutdown/Default [effect on investments]
Replies: 454
Views: 38784

Re: Government Shutdown/Default [effect on investments]

Another perfect example of the value of "Just stand there and do nothing".
by mikem
Wed Oct 16, 2013 2:12 pm
Forum: Personal Investments
Topic: Any Dangerous Boglehead Group-Think?
Replies: 73
Views: 5614

Re: Any Dangerous Boglehead Group-Think?

I get the impression, occasionally, especially from new posters that they may be seeking out a "groupthink" mentality in order to garner support or approval for their actions or plans. When confronted with all possible options, it can be confusing and may even be intimidating when faced wi...
by mikem
Tue Oct 15, 2013 8:11 pm
Forum: Investing - Theory, News & General
Topic: Government Shutdown/Default [effect on investments]
Replies: 454
Views: 38784

Re: Anyone Else Scared?

Looks like a lot of Bogleheads are having a time horizon of about a week lately judging by the comments above! We will get through this and prevail. Stick to your plan! I am sticking to my plan. However as someone in early retirement the potential effects of this Congressional version of Chicken ar...
by mikem
Mon Oct 14, 2013 8:21 pm
Forum: Investing - Theory, News & General
Topic: Life Strategy or Target Funds ?
Replies: 44
Views: 5736

Re: Why International Bonds.

I own both the TR and LS funds(different accounts w/ different brokers) and am satisfied with both. I am not sure the international bond component has added much value to the TR funds. Perhaps someone with better analytical skills than I can shed more light on this component. Mikem: This article by...
by mikem
Mon Oct 14, 2013 2:06 pm
Forum: Investing - Theory, News & General
Topic: The new reality of international bonds
Replies: 5
Views: 1335

Re: The new reality of international bonds

It's also interesting that Vanguard also recommends that international bonds be 20% of your fixed income.
by mikem
Mon Oct 14, 2013 6:28 am
Forum: Investing - Theory, News & General
Topic: Life Strategy or Target Funds ?
Replies: 44
Views: 5736

Re: Life Strategy or Target Funds ?

I own both the TR and LS funds(different accounts w/ different brokers) and am satisfied with both. I am not sure the international bond component has added much value to the TR funds. Perhaps someone with better analytical skills than I can shed more light on this component.
by mikem
Thu Oct 10, 2013 4:42 pm
Forum: Personal Investments
Topic: Thinking of changing 50% FI to "VG Total Intl Bond".
Replies: 7
Views: 1192

Re: Thinking of changing 50% FI to "VG Total Intl Bond".

50% of your fixed income in a fund that carries additional currency risk....? :shock:
by mikem
Thu Oct 10, 2013 1:39 pm
Forum: Personal Investments
Topic: 4 fund portfolio for Bogleheads?
Replies: 11
Views: 1469

Re: 4 fund portfolio for Bogleheads?

I own both the Life Strategy Growth and Target Retirement Funds and fail to see where the addition of the Int'l Bond component has much added value. Having said that, I have only owned both funds for 2 years so I have probably not given the Int"l Bond sector time to contribute. I do believe the...
by mikem
Wed Oct 09, 2013 4:57 pm
Forum: Personal Investments
Topic: Could you critique my fixed income allocation?
Replies: 2
Views: 360

Re: Could you critique my fixed income allocation?

Am I reading this wrong or is your short term investment grade 23.8% of your fixed income ? Being still in the accumulation stage while enjoying retirement is an enviable position and I congratulate you and your wife. I believe your fixed income looks very good as it appears it is in tax sheltered a...
by mikem
Wed Oct 09, 2013 10:54 am
Forum: Investing - Theory, News & General
Topic: What will happen to BND if US default?
Replies: 19
Views: 2440

Re: What will happen to BND if US default?

Officially the US will NOT default. Those are only scare negotiation tactics. The US has plenty of daily/monthly cashflow to meet its interest obligations. Stay the course! That idea comes from the belief that the US can continue to pay interest on US debt because it is saving $24B a month by not p...
by mikem
Wed Oct 09, 2013 10:42 am
Forum: Investing - Theory, News & General
Topic: Are investors (and their advisors) dumber than rats?
Replies: 15
Views: 1455

Re: Are investors (and their advisors) dumber than rats?

Bmac wrote:
Epsilon Delta wrote:The rats care about where the food is, their human "advisors" don't.
Actually, the problem is that the advisors get fed regardless of whether or not they make the correct choice . . .
+1....How many jobs are there that you are compensated equally for being wrong ?
by mikem
Tue Oct 08, 2013 3:35 pm
Forum: Personal Investments
Topic: CD Ladder Confusion...
Replies: 15
Views: 2451

Re: CD Ladder Confusion...

I think I-bonds are currently at 0% interest with 1.18% inflation adjustment. They will announce the new rates on 10/14(I believe) so you may want to wait & see what the rates are for the next 6 months(on the inflation adjustment factor). Although, I don't think they will raise the interest rate...
by mikem
Tue Oct 08, 2013 3:25 pm
Forum: Personal Investments
Topic: Reliable Way to Assess Risk Tolerance?
Replies: 15
Views: 1759

Re: Reliable Way to Assess Risk Tolerance?

Fallible - before you're done, figure out what your dollar loss would be for your allocation in a worst-case scenario (such as stocks down by 50% in the next couple weeks, and not recovering for a decade or two) and see how comfortable you are with that. If I understand you correctly, I would say t...
by mikem
Tue Oct 08, 2013 2:38 pm
Forum: Personal Investments
Topic: Reliable Way to Assess Risk Tolerance?
Replies: 15
Views: 1759

Re: Reliable Way to Assess Risk Tolerance?

Fallible - before you're done, figure out what your dollar loss would be for your allocation in a worst-case scenario (such as stocks down by 50% in the next couple weeks, and not recovering for a decade or two) and see how comfortable you are with that. I would surmise that anyone over the age of ...
by mikem
Tue Oct 08, 2013 10:13 am
Forum: Personal Investments
Topic: Reliable Way to Assess Risk Tolerance?
Replies: 15
Views: 1759

Re: Reliable Way to Assess Risk Tolerance?

All the above are well thought out, comprehensive replies and are sincerely appreciated. One thing which is common to all, and something that I have not considered seriously enough, is risk capacity, especially at age 60. As BobK kindly pointed out above .....I don't have many accumulation years lef...
by mikem
Mon Oct 07, 2013 8:47 pm
Forum: Personal Investments
Topic: Reliable Way to Assess Risk Tolerance?
Replies: 15
Views: 1759

Reliable Way to Assess Risk Tolerance?

[codu[/code] The questionnaires at Vanguard and Schwab are pretty weak at assessing risk tolerance. For someone who has not really been through a rough Bear market, is there a more effective online tool ? At age 60, I am currently at a 60/40 AA ratio and seem to be quite comfortable,but my mettle ha...
by mikem
Mon Oct 07, 2013 8:18 pm
Forum: Personal Investments
Topic: CD Ladder Confusion...
Replies: 15
Views: 2451

Re: CD Ladder Confusion...

The Ally Bank website has a great tutorial on how to build a CD ladder including scenarios on various lengths of time and you can choose your investment amounts to see what your ladder will generate regarding returns.
by mikem
Mon Oct 07, 2013 6:27 am
Forum: Personal Investments
Topic: I'm a novice. Retirement planning help wanted.
Replies: 5
Views: 893

Re: I'm a novice. Retirement planning help wanted.

I see no bonds in your portfolio but assume you are relatively young so an 90%/10% S/B ratio may be OK at this point in your investing life. I would suggest 20% bonds until you are comfortable with your particular level of risk tolerance.
by mikem
Mon Oct 07, 2013 6:17 am
Forum: Personal Investments
Topic: Quick ?: Will Vanguard let an individual have >1 account?
Replies: 9
Views: 1850

Re: Quick ?: Will Vanguard let an individual have >1 account

You could use an additional account with another broker if it worries you about security.
by mikem
Sun Oct 06, 2013 10:45 am
Forum: Personal Investments
Topic: Why VTSMX when VTSAX asked for?
Replies: 16
Views: 2397

Re: Why VTSMX when VTSAX asked for?

dbr wrote:Vanguard does not allow brokers to sell you Admiral shares of index funds but does allow Admiral shares of non-index funds. That is likely the explanation. You could move the account to Vanguard.
+1...Just went through this scenario with Schwab.
by mikem
Fri Oct 04, 2013 2:02 pm
Forum: Investing - Theory, News & General
Topic: The new safe withdrawal rate
Replies: 285
Views: 25303

Re: The new safe withdrawal rate

Makes sense that 4% might be too generous. So, whatever withdrawal rate you select and then take it and adjust it for inflation you spend. Then well into retirement you get hit with large unexpected expenses e.g. health/dental and other non job loss emergencies that non retirees encounter. If you h...
by mikem
Thu Oct 03, 2013 10:40 am
Forum: Investing - Theory, News & General
Topic: Professor Elroy Dimson on "Sensible Investing"
Replies: 1
Views: 616

Re: Professor Elroy Dimson on "Sensible Investing"

Great comment in his video about the "best investment of all-education". Thanks for sharing.
by mikem
Thu Oct 03, 2013 10:32 am
Forum: Investing - Theory, News & General
Topic: 30 year TIPs auction announcement October 17
Replies: 44
Views: 4557

Re: 30 year TIPs auction announcement October 17

I wish I could see a real good reason for the interest rate to move off "0" and the inflation factor rise above 1.18% annual. I will wait for the auction but will probably continue with CD ladders for the foreseeable future. Thanks for the reminder about the auction.
by mikem
Wed Oct 02, 2013 3:23 pm
Forum: Personal Investments
Topic: Why can I not buy Admiral Shares ?
Replies: 18
Views: 2942

Re: Why can I not buy Admiral Shares ?

I was Schwab for 16 years and transferred everything to Vanguard to be eligible for Admiral Shares. Didn't make sense to pay more for investor shares at Schwab even though they allowed me to buy Vanguard funds without a transaction fee. They suggested I buy admiral shares at Vanguard and transfer t...
by mikem
Wed Oct 02, 2013 1:51 pm
Forum: Personal Investments
Topic: Why can I not buy Admiral Shares ?
Replies: 18
Views: 2942

Re: Why can I not buy Admiral Shares ?

The $ amount was a birthday gift from my father and he wanted to utilize funds unused in his Schwab brokerage account and just did a fund transfer to my Schwab brokerage account. The reason for purchasing a Vanguard fund is that I will eventually consolidate both accounts into one at Vanguard for s...
by mikem
Wed Oct 02, 2013 1:48 pm
Forum: Personal Investments
Topic: Why can I not buy Admiral Shares ?
Replies: 18
Views: 2942

Re: Why can I not buy Admiral Shares ?

I thought Signal class was reserved for institutional buyers ? Nope, you can buy Signal Shares if Schwab will let you. There may be other restrictions e.g. minimum purchase. Signal Shares are identical to Admiral Shares, just a different ticker. If you ever move them to Vanguard, they will be conve...
by mikem
Wed Oct 02, 2013 1:44 pm
Forum: Personal Investments
Topic: Why can I not buy Admiral Shares ?
Replies: 18
Views: 2942

Re: Why can I not buy Admiral Shares ?

Why a Schwab account to hold Vanguard funds ? :confused The $ amount was a birthday gift from my father and he wanted to utilize funds unused in his Schwab brokerage account and just did a fund transfer to my Schwab brokerage account. The reason for purchasing a Vanguard fund is that I will eventua...
by mikem
Wed Oct 02, 2013 11:27 am
Forum: Personal Investments
Topic: Why can I not buy Admiral Shares ?
Replies: 18
Views: 2942

Re: Why can I not buy Admiral Shares ?

livesoft wrote:The Signal share class of Vanguard funds was probably invented somewhat for this issue. At least my broker offers Signal share class funds without paying commissions.
I thought Signal class was reserved for institutional buyers ?
by mikem
Wed Oct 02, 2013 11:24 am
Forum: Personal Investments
Topic: Why can I not buy Admiral Shares ?
Replies: 18
Views: 2942

Re: Why can I not buy Admiral Shares ?

I tried to buy $13.5K worth of Vanguards Balanced Fund (Admiral Shares) through my Schwab account and got a message before the buy that I must have a "previous position" in this fund before I can purchase Admiral shares. I ended up with the investor shares (VBINX) at a significant increas...
by mikem
Wed Oct 02, 2013 10:26 am
Forum: Personal Investments
Topic: Why can I not buy Admiral Shares ?
Replies: 18
Views: 2942

Why can I not buy Admiral Shares ?

I tried to buy $13.5K worth of Vanguards Balanced Fund (Admiral Shares) through my Schwab account and got a message before the buy that I must have a "previous position" in this fund before I can purchase Admiral shares. I ended up with the investor shares (VBINX) at a significant increase...
by mikem
Mon Sep 30, 2013 6:29 am
Forum: Personal Investments
Topic: Fixed Income choices
Replies: 11
Views: 1625

Re: Fixed Income choices

3-5 year CD "ladder" at Ally bank for approx 30% of your fixed income and the remainder in a mid term bond fund is my plan at approx 3-4 yrs from retirement. Similar to the good advice you got from Dandy above. I find that sufficient resources in liquid,safe, CDs helps to reinforce my risk...
by mikem
Fri Sep 27, 2013 2:47 pm
Forum: Investing - Theory, News & General
Topic: Fidelity target date funds pile on stocks
Replies: 65
Views: 6570

Re: Fidelity target date funds pile on stocks

I am scheduled (or want to) retire in 3 years. I do not want to endure a 20 year recovery from a major drawdown in the market with an equity heavy portfolio. If Vanguard takes the same tact as Fidelity and substantially increases the stock portion of the Target Date series, I will replace my Target ...
by mikem
Thu Sep 26, 2013 4:50 pm
Forum: Personal Investments
Topic: asset allocation - investment
Replies: 14
Views: 2258

Re: asset allocation - investment

Hi Best, The target retirement funds are good funds but gradually decrease the stock allocation over time and increase the bond allocation at about the rate of 1% annually. You might be interested in the Life Strategy Funds but none are 50/50 so you would have to select one that is 60/40 or 40/60. 6...
by mikem
Thu Sep 26, 2013 1:52 pm
Forum: Personal Investments
Topic: Buy Vanguard fund thru Vanguard or Brokerage account?
Replies: 9
Views: 2412

Re: Buy Vanguard fund thru Vanguard or Brokerage account?

I have brokerage accounts at 2 firms..VG and C Schwab. I reached a rebalancing band this week in the Schwab account but wanted to purchase a VG fund. Will pay a $75 commission fee. :oops: I don't like to do this but the E/R is lower on the VG fund and at some point(not sure when), I will move the Sc...
by mikem
Mon Sep 23, 2013 2:20 pm
Forum: Personal Investments
Topic: Poll: Did low-cost investing not work for you?
Replies: 25
Views: 4140

Re: Poll: Did low-cost investing not work for you?

I don't know of anyone who does low cost investing and tracks it to the alternatives (High cost investing?) such that they know if they've done well or poorly. My father, financially independent and accustomed to managing a low cost,index based portfolio recently inherited a 401K from his youngest ...
by mikem
Sun Sep 22, 2013 1:35 pm
Forum: Personal Investments
Topic: Land Purchase? Convince me to jump!
Replies: 22
Views: 3582

Re: Land Purchase? Convince me to jump!

Spent 15 years buying, developing and selling recreational lands. 200 miles is pretty far away, especially when the "new" wears off. You put a horse on it then you will have to go..frequently. Gas costs to get there and home...$100. Of course now you need a pickup as you are a rancher. Is ...
by mikem
Mon Sep 16, 2013 11:50 am
Forum: Personal Investments
Topic: Short Term Bond Fund
Replies: 21
Views: 3186

Re: Short Term Bond Fund

In taxable have you purchased up to your limits of Series I savings bonds yet for the year? Once November 1 rolls around, I'm very curious to see if the Series EE bond gets a rate of ~1.2% or so based on where the 5 year treasury has been trading. If it does, it's instantly a better deal than most ...
by mikem
Sat Sep 14, 2013 11:53 am
Forum: Personal Investments
Topic: How to calculate AA when one has a pension
Replies: 11
Views: 1389

Re: How to calculate AA when one has a pension

Here's my plan: 1) Examine my current spending after taxes. 2) Estimate future income from S/S and pension. 3) Subtract #1 from #2. 4 ) The shortfall will need to come from savings. 5) Using a 4% withdrawal rate..I establish my total savings goal. 6) Invest according to my IPS and risk tolerance. Th...