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canyon

Brian, How nice it would be to be able to just live off the dividends. But with rates being so low I'd hate to have to sell shares of a bond fund, or stock funds for that matter, at a loss. My thinking was that by laddering the bond funds I could time the maturities...something which is impossible t...

canyon

I'm a little leery of placing money, targeted for bonds, into a bond fund right now due to the possibility of losing principle should interest rates increase. I've started to look at bond funds that actually have a fixed maturity date. I'm assuming (maybe wrongly) that as long as they're held to mat...

canyon

Hi Oblivious, So sorry about your loss. You can claim survivor benefits at age 60, but it will be reduced if you're still working and earning above a certain amount (I think it's around $14,000). For every year you wait, the benefit amount will increase. When you reach full retirement age you can th...

canyon

Thanks all for all your help. Between dealing with doctors and insurance companies this is turning into a full time job. So, I'll begin the SS process...Thanks, C

canyon

Hi all, Before I start to wade through the Social Security website, I thought someone here might have the answer. My wife, who turns 60 next week, was recently diagnosed with cancer and is on heavy chemotherapy, which will continue for some time. She had to leave her job and hasn't been able to work...

canyon

Thanks for all the help. Funnymoney, I wasn't aware that an outside agent could handle the transaction. Any idea of what kind of cost (or percentage) this might involve? We live in a small town and the 2 major employers have been laying off people. So if there's anyway I can sell now, I'd love to do...

canyon

Hi all, I've been trying to sell my house, and finally have a serious buyer. The problem is, he's having trouble getting a mortgage. My wife and I are willing to hold the mortgage for a period of time...maybe 10 years. What do I need to know about setting up the transaction? I'll be staying in the a...

canyon

Hi all, I'm getting to the point where I will need to start withdrawing income from my portfolio. I'm looking at my fixed allocation which right now is earning little interest in Vanguard Prime MM and CDs. I see the bond funds are doing much better in income flow, although I realize that a rise in r...

canyon

Hi all, I'm getting to the point where I will need to start withdrawing income from my portfolio. I'm looking at my fixed allocation which right now is earning little interest in Vanguard Prime MM and CDs. I see the bond funds are doing much better in income flow, although I realize that a rise in r...

canyon

Hi all, I noted that with the CD rates falling, PenFed is offering a 3 year CD @4% and a 4 year @ 4.25%. I have 2 questions: 1. Has anyone dealt with PenFed...I'm always a little cautious when it comes to rates that seem to be higher than everyone else. 2. This is a very simple logistical question. ...

canyon

Thanks Larry...As always some sage advice....C

canyon

Thanks to all my friends here at diehards, I recently scooped up a bunch of 10 year TIPS at 3%. Now that the interest rates have tanked, I'm sitting with a paper profit. My gut instinct is that what I already have is the best deal in town and that I should hold them, even though I would imagine that...

canyon

R-48,
There's another possibility....With fuel, food skyrocketing, and the housing market taking a hit, the rates could go down. That's not impossible. In that case the bond guys win and those in mm see their interest rates go down even more. Maybe splitting the difference is the best bet????

canyon

Vanguards short term corp bond fund is a good candidate to own. If rates start upward, it will eventually keep up. My entire bond portfolio duration currently ranges from money market funds, to three years maximum. In the inflation of the 1970's mm yields got to about 13%! Some of the bond books (S...

canyon

Thanks OptionAl. I appreciate your advice. I agree that even though the stock market has historically always rewarded risk given enough time, I'd hate to get to a point where I absolutely need the growth in equities to sustain a standard of living....and it's not there. I like your approach in tryin...

canyon

Whether proposed by a Stanford PHD, or anyone else, the idea that people should increase their stock exposure during retirement just because they're going to live longer than expected has a name: Wishful thinking (re investment returns, not longevity.) This is typical of Ben Stein-like thinking - i...

canyon

Hi all, In this crazy market, I'd like to purchase some individual bonds, probably ladder them, so that no matter what happens to the price of the bond at maturity I know I'll receive my full principal back, if and when I need the funds. I know I can go to TreasuryDirect for the Fed bonds. How would...

canyon

Just finished reading Bonds: The Unbeaten Path to Secure Investment growth by Hildy and Stan Richelson. Very informative. I also concur that Larry Swedroe's Bond book is a must read.

canyon

I'm a big believer in Taylor's 4 Fund. I have about 50/50 stock/bond and have divided it up: Taxable: Total Stock Market 35% Ftse (International) 15% Non-Taxable: Tips (fund) 25% Total Bond Market 25% I decided to run my portfolio through Financila Engine, and this was the recommendation: Taxable: V...

canyon

I'd like to second TimDex's request for a look at Rick Ferri's portfolio. I'm drawn to the more basic (simple) portfolios...but keep reading about the advantages of a more sliced and diced set-up. Thanks madsinger for all the info you provide....C

canyon

I know this topic has been discussed before...many times. However, let me add just a small paranoid note. If you do the math...yes it's a good deal to delay taking SS for a host of reasons. However, if you're retired you're drawing down what could be a significant amount of one's assets, while waiti...

canyon

In addition to the information outlined throughout these pages, readers may also become a user of the online advisory service at FinancialEngines.com for one year, so that they may apply what they’ve learned to their own personal investment portfolios. This quote was taken from the review on Amazon...

canyon

Hi hopetoretire, I have a similar asset profile. Of course the obvious part is allocating the equities in your taxable account. You present a good question about how to lock in a few years of guaranteed income, and divide the rest of your fixed assets. I thought I'd bump this back up, so some of the...

canyon

Got it...Thanks, Taylor.

canyon

Hi Taylor,
I noted in the allocation that you used a short term bond index, rather than the usual Total Bond Market or Intermediate. Reasoning? Thanks...C

canyon

I'm sure this has been discussed, but I couldn't find it on the forum. I'm about to purchase Vanguard's total stock market index fund (VTSMX). My plan is to use the dividends as part of my living expenses, and sell shares to make up any difference I need. I notice the ETF (VTI) has a lower expense r...

canyon

Hi bobcat2, I know this subject has been beaten to death...but you wrote: " IMO for bond holdings in a tax advantaged account the best bond allocation is a ladder of TIPS bonds. That's TIPS bonds - NOT a TIPS bond fund. The second best allocation is simply holding mostly TIPS bonds (NOT a TIPS ...

canyon

I also didn't see the great advantage to these funds...but since they were being touted as a big perk for being a flagship customer, I thought it was worth checking out. Thanks for the input....C

canyon

Since qualifying for Vanguard Flagship I have these closed funds available to me( listed below). My portfolio...although still a work in progress..but getting closer...is basically Taylor's 4 Fund approach. Is there any advantage to adding any of these funds, and if so, how should they be allocated....

canyon

I'll (hopefully) be retiring in the next year or so. My taxable account is mainly stocks, and tax-deferred account is all fixed (CD's, Bonds). I plan to sell from my taxable account to generate the income I need. Since I plan to keep the same stocks/fixed allocation I may have to adjust in my tax-de...

canyon

We recently moved our 401K plan from a conventional brokerage house to Vanguard. We were getting killed on the fees, and decided it made sense to change. With Vanguard you have to arrange your own 401K administrator. I don't think there's any size requirements...our group has 5 people in it. Fidelit...

canyon

Thanks livesoft...That was very helpful...C

canyon

Hi all, I'm in the process of finally putting this all together. I have appox. 50/50 in taxable/non-taxable accounts, and plan on a 50/50 stock/bond allocation. In a year or so the plan is to retire and begin taking money out. The allocation is roughly: Taxable; 35% Vanguard Total Stock Market 15% V...

canyon

A couple of things to add. To hold a balance of 60/40 stocks/bonds, given the portfolio presented, you're going to have to hold some fixed income in a taxable account. Depending on your tax bracket, these can either be taxable bonds/funds...or if your tax bracket dictates you'll have to look at the ...

canyon

Thanks Ken..No Vanguard doesn't have a tax exempt fund for my state...so how would I determine the best fund? Thanks again....C

canyon

Hi all, I finally finished transfering my assests to Vanguard, including my 401K. The majority of my portfolio is now in cash and I'm ready to set up my portfolio. Here are the details: Age 57 Goal: To retire in 2 years Will be able to live on a 4% draw and re-evaluate when I hit 62. Desired allocat...

canyon

How come no one is talking about a ladder of CDs? You can lock in the rate now (while the MM go south) and have no loss in principal. Of course the timeline of the ladder is anyone's best guess...

canyon

Here's the link to the article that I referred to. It looks like the break even might be around 78 or 79, but even so, that's assuming everything stays the same...which is quite a bet. http://finance.yahoo.com/focus-retirement/article/104299/Taking-Social-Security-Too-Soon-Can-Cost-You?mod=retiremen...

canyon

I keep scratching my head over this. Am I missing something? According to the calculations, if I start taking my benefits at 62, I will be better off until the break- even age of around 80 (vs. if I had waited until 66 to collect). Now I think this assumes that I will spend every penny with no savin...

canyon

Thanks for the advice. I was surprised when I looked at Fidelity's bond fund's stats...I thought I must be missing something. We had the option to move the 401K to Vanguard, but ran into real problems trying to get a 3rd party administrator. Fidelity makes the transfer pretty easy. We haven't done t...

canyon

Hi all, I recently transferred my accounts over to Vanguard. My 401K is with Fidelity. In my taxable account I plan to hold an International fund and the Total Stock Market Fund. My question is regarding my fixed allocation in my non-taxable accounts. I'll be holding 56% of these assets in a Vanguar...

canyon

Rickster, I'm also starting to plan a withdrawal strategy. My plan is to hold all equities in taxable accounts, and all bonds in tax deferred. Assuming a bear market, I would sell the equities in my taxable account needed for current income ( and possibly be able to claim a loss on my taxes), and th...

canyon

Thanks Jerry....that was a great link.

canyon

I will be purchasing laddered CD's for my IRA. I always assumed that the FDIC insurance would max out at $100,000 per bank. Since I will be investing more than this, I thought I'd need to buy from more than one bank. I recently read that in an IRA CD's are FDIC insured up to $250,000. If this is tru...

canyon

Hi Petrocelli,
The FundX numbers are certainly impressive. I'm not familiar with the newsletter or strategy. I checked their website and that provides only a vague overview. Could you say more about it? Thanks...

canyon

Yes Ron, that's the ultimate way to not have to time the market.....work 'til you drop dead. I would prefer to stop earlier, and if I get unlucky and if necessary, scramble for a couple of years. I think even Vig mentioned on another post that he had to return to work for a year.

canyon

Let's say that at age 62 I have a portfolio worth 1M. I could draw 5% and live on $50,000/year until the age of 66 and than when SS kicks in another $25000, I could lower my withdrawal rate to 4% and live on $65000/year....or at age 62 I can withdraw 4% and live on close to $60,000?year. Why would I...

canyon

Yes I agree with you, retiring at 62 and taking a withdrawal rate of 6% until age 66, isn't adviseable. But I'd rather take my SS at 62 and retire, then work the additional years. I guess life is full of compromises.

canyon

As I begin to ponder reaching the magical age when I'll be eligible for social seciruty, I'm at a bit of a loss about when to take it. I always thought I'd begin collecting at 62. After all according to my calculations, if I waited until 66,I wouldn't "break even" with the earlier distribu...

canyon

Thanks Vig for the very informative article. I really appreciate all your help!!!!

Bogleheads.org

Search found 67 matches

Re: Fixed maturity bond funds

Fixed maturity bond funds

Disability question

Questions about financing buyer's purchase

Basic Bond Fund Question

Very basic bond question

Question regarding PenFed CD

TIPS and the "sweet" spot

Buying individual bonds

Taylor's 4 Fund vs. Financial Engine

Total Stock Market (VTSMX) vs. VTI

Flagship access to "closed" funds

Help with annual withdrawal

Help in setting up my portfolio for retirement

Help with fixed allocation

FDIC and CDs in IRA

What is the best age to take Social Security?