Search found 30 matches

by soar
Sun Jul 14, 2013 2:08 pm
Forum: Personal Investments
Topic: Total Bond Market Substitution
Replies: 17
Views: 3307

Re: Total Bond Market Substitution

Munir wrote:Take a look at Short Term Investment Grade (VFSUX). Duration 2.5 years. Vangaurd lists it in the Risk 1 category. Its yield is not anything to brag about, but could it act as a temporary "safe-haven" for a few years until the interest rate situation stabilizes? Not as safe as CDs but less of a hassle to own. I am using it and cash as the major part of my fixed income portfolio (I'm a retiree in the distribution phase).
In the distribution phase what are you using apart from cash and VFSUX? Total Bond?
by soar
Sat Jul 13, 2013 9:05 pm
Forum: Personal Consumer Issues
Topic: All Wheel Drive vs. Front Wheel Drive
Replies: 59
Views: 19887

Re: All Wheel Drive vs. Front Wheel Drive

Ged wrote:
orre wrote:
Another reason to buy another vehicle.

http://www.iihs.org/news/rss/pr071113.html
The test you referred to is pretty new, and almost all SUVs are failing it.
Not the Subaru Forester and the Volvo XC60. Quite a few midsize cars, e.g. Honda Accord, are passing.
by soar
Sat Jul 13, 2013 8:34 pm
Forum: Personal Finance (Not Investing)
Topic: SS earnings record incorrect
Replies: 16
Views: 1567

Re: SS earnings record incorrect

Rainier wrote:Yes, I bet the SSA gets its right far more often than not, probably close to six sigma reliability. In the case of the OP, turns out the SSA was right.
by soar
Sat Jul 13, 2013 8:30 pm
Forum: Investing - Theory, News & General
Topic: A Dangerous Misunderstanding about Bond Rates?
Replies: 124
Views: 16170

Re: A Dangerous Misunderstanding about Bond Rates?

So while it might not have been Weimar Germany, it was pretty darn scary and it had major implications for me for the next 25 years as far as what I could afford to live in. It isn't anything I ever want to live through again, that's for sure. But it is also a big part of why, besides the academic reasons that make bonds look bad, I can't see locking in a 2 or 3% interest rate for a decade. I'm perfectly willing to "miss out" on 1 or 2% of interest on my money if it means that I can also miss out on decades of experiencing much larger permanent drops in my money's earning power. As it is, the money I have in my Prime Money Market Fund has outperformed most of the Vanguard Bond Funds this past six months (which is when I had fixed...
by soar
Sat Jul 13, 2013 8:23 pm
Forum: Personal Consumer Issues
Topic: All Wheel Drive vs. Front Wheel Drive
Replies: 59
Views: 19887

Re: All Wheel Drive vs. Front Wheel Drive

Barefootgirl wrote:For Northern Virginia I would not buy AWD except for the higher resale value.


This is really the bottom line to the entire discussion.

I am not sure the business case for this pans out - when you consider the higher upfront cost and additional fuel costs over the life of the vehicle - say anything more than 50K miles.

I might just throw my hands up and buy a different vehicle. What a PITA this whole Toyota exercise has been LOL.


BFG


http://www.iihs.org/news/rss/pr071113.html
by soar
Fri Jun 28, 2013 10:43 pm
Forum: Investing - Theory, News & General
Topic: Long-Term Returns website down?
Replies: 59
Views: 14873

Re: Long-Term Returns website down?

deleted
by soar
Mon Jun 24, 2013 9:53 pm
Forum: Investing - Theory, News & General
Topic: Where do folks get dry powder from??
Replies: 65
Views: 6229

Re: Where do folks get dry powder from??

VictoriaF wrote:
NightOwl wrote:I'm not a fan of the phrase "dry powder."
How did this expression come about? Is it to powder your nose when everyone else is sweating profusely? Or it's gun powder to make a market kill?

Victoria
by soar
Sun Jun 23, 2013 2:35 am
Forum: Personal Consumer Issues
Topic: Moving Files Between Cloud Drives
Replies: 8
Views: 822

Re: Moving Files Between Cloud Drives

Edit is not the same as create/delete. I'd suggest the OP needs to post additional details of what is meant by edit functionality. Perhaps the OP could post what these services are telling him.
by soar
Wed Jun 05, 2013 10:57 pm
Forum: Personal Finance (Not Investing)
Topic: Forbes Story How Retirees Pay Zero Taxes
Replies: 34
Views: 5598

Re: Forbes Story How Retirees Pay Zero Taxes

rec7 wrote:Forbes Story How Retirees Pay Zero Taxes
To illustrate, let’s invent a retired couple who live outside Boston. They own a $2 million home, have $7 million stashed away at their broker and haul in $200,000 a year in dividends, interest, Social Security and distributions from publicly traded partnerships. They have $30,000 in deductions, including $20,000 for property tax and $5,000 for a donation.

http://www.forbes.com/sites/baldwin/201 ... ero-taxes/
Aren't these folks not paying their fair share?
by soar
Sun Feb 10, 2013 1:35 pm
Forum: Personal Investments
Topic: 'Won the Game' but is this portfolio too conservative?
Replies: 30
Views: 5976

Re: 'Won the Game' but is this portfolio too conservative?

Red-y wrote:
Boglenaut wrote:Are you covered by the Canadian health system? Seems to me living expenses could get really high if not. But maybe that's why you have it so low.
Yes, fully covered since 90 days after moving here. I don't pay anything for doctors or hospitalizations; the monthly premiums for that coverage here in BC just went up to $66/month. For vision, dental, prescriptions, chiropractic etc. I am on my own.
by soar
Fri Feb 08, 2013 11:03 pm
Forum: Investing - Theory, News & General
Topic: Finally arrived: The Vanguard Total International Bond Fund
Replies: 187
Views: 40479

Re: Finally arrived: The Vanguard Total International Bond F

normaldude wrote:I'm talking about rare events (Great Depression, WWII), and events that have never happened before (US govt default, USD hyperinflation).
That's not quite correct. The US has defaulted several times e.g. The Continental Currency Default of 1779, The Default of 1790 and The Greenback Default of 1862. If you had lived in those times you would have suffered severe losses.

Which brings us back to the question of whether the Total International Bond Fund offers diversification to the US investor. It would appear that Vanguard believes that it does.

https://personal.vanguard.com/us/insigh ... t-02062013
by soar
Fri Feb 08, 2013 10:48 pm
Forum: Investing - Theory, News & General
Topic: Finally arrived: The Vanguard Total International Bond Fund
Replies: 187
Views: 40479

Re: Finally arrived: The Vanguard Total International Bond F

Everytime this subject come up, I consider David Swensen's thoughts from the excellent book "Unconventional Success": "By asset size, foreign-currency-denominated bonds represent a formidable market, falling just short of the aggregate market value of U.S.-dollar-denominated debt. Yet, in spite of the market's size, foreign bonds offer little of value to U.S. investors." "Consider bonds of similar maturity and similar credit quality, with one denominated in U.S. dollars and the other denominated in foreign currency. Because monetary conditions differ from country to country, the two bonds would likely promise different interest rates. An investor might expect that different interest rates and different economic con...
by soar
Thu Feb 07, 2013 10:02 pm
Forum: Personal Investments
Topic: Can I retire comfortably?
Replies: 61
Views: 9493

Re: Can I retire comfortably?

soccerdad12 wrote:
vital15 wrote:Can you find a buyer that would want to keep you on as an employee for a couple of years and continue leading the business?
That is definitely what they would want to do, but not what I would want to do.
Why not? if you can answer that question it might help you make a decision.
by soar
Wed Jan 16, 2013 12:53 am
Forum: Personal Consumer Issues
Topic: Need new desktop PC
Replies: 19
Views: 2821

Re: Need new desktop PC

McCharley wrote:I second the motion to build it yourself. I just built one and it's fun -- I learned a lot and saved money, besides.

I started to spec out a Falcon machine and it was about twice what I spent, FWIW. (Not an unfair price, just higher. :greedy )
+1. If you think you would enjoy choosing components and building the system. You will learn a lot and there are a lot of sites that are helpful. You will then be able to do your own updates and tech support.
by soar
Wed Jan 16, 2013 12:48 am
Forum: Personal Consumer Issues
Topic: Need new desktop PC
Replies: 19
Views: 2821

Re: Need new desktop PC

Jerilynn wrote:
orre wrote:Falcon Northwest

http://www.falcon-nw.com/

Kinda pricey, but what the hell, I'm dating a billionaire. US based tech support??
They are pricey but very well built and reliable. Yes US tech support from Oregon.
by soar
Wed Jan 09, 2013 12:23 am
Forum: Personal Consumer Issues
Topic: Need new desktop PC
Replies: 19
Views: 2821

Re: Need new desktop PC

Falcon Northwest

http://www.falcon-nw.com/
by soar
Mon Dec 31, 2012 5:27 pm
Forum: Personal Investments
Topic: Nearing retirement - need help with FI and withdrawals
Replies: 29
Views: 3928

Re: Nearing retirement - need help with FI and withdrawals

You're welcome. Well see my tip #2 part b. http://www.bogleheads.org/forum/viewtopic.php?t=66328 Let's make things simple and assume you retire tomorrow, and as per your original post you need to draw 3% of your portfolio for the next 10 years. As per the Swensen approach I discuss you would set aside the following amounts now in cash or cash equivalents: 2013 money: 100% of 3% 2014 money: 100% of 3% 2015 money: 7/8 of 3% 2016 money: 6/8 of 3% 2017 money: 5/8 of 3% 2018. Money: 4/8 of 3% 2019 money: 3/8 of 3% 2020 money: 2/8 of 3% 2021 money: 1/8 of 3% 2022 money 0/8 of 3% I.e you don't need to hold any of your 2022 spending needs in cash as it is more than 10 years off. That adds up to 16.5% of your portfolio that should be in cash or cas...
by soar
Mon Dec 31, 2012 4:37 pm
Forum: Personal Investments
Topic: Nearing retirement - need help with FI and withdrawals
Replies: 29
Views: 3928

Re: Nearing retirement - need help with FI and withdrawals

The problem hopefully is not needing the 400K badly, it's the problem of selling stock funds now to keep the 50:50. I certainly don't wish to borrow against the house later on. I'm close to being debt free and want to be debt free at all costs (no pun intended). When I move the equity in the house will pay for a small house or condo elsewhere and then I will be completely debt free. Don't fall into the same fallacy that most everyone does. If you have a 50/50 portfolio with debt, it is not the same risk level as a 50/50 portfolio with no debt. The risk in a portfolio comes from how many absolute dollars you have in stocks, not what percentage of stock in your portfolio. For example, you have 500k in stocks and 500k in bonds with a 400k deb...
by soar
Sun Dec 30, 2012 6:07 pm
Forum: Personal Investments
Topic: Nearing retirement - need help with FI and withdrawals
Replies: 29
Views: 3928

Re: Nearing retirement - need help with FI and withdrawals

I think Laura's point is a very good one. The OP has a house supposedly worth $700k and a mortgage for $400k. Let's say he pays off the mortgage in full and then wants to move in a year. But then he finds he can only get $600 k for it. And he doesn't want only $600k, he wants the $700k that its supposed to be worth so he decides not to sell, but to wait. The $400 k that he paid down the mortgage with is now tied up- i.e. it can't be easily pulled out. cheers, That's exactly the kind of problem that could occur. If I did pay off the 400K mortgage I would also have to sell some of the equity mutual funds in taxable to maintain 50:50. Since I have capital gains I don't think that's a good idea. Since the original post I am in the process of r...
by soar
Sun Dec 30, 2012 5:56 pm
Forum: Personal Investments
Topic: Nearing retirement - need help with FI and withdrawals
Replies: 29
Views: 3928

Re: Nearing retirement - need help with FI and withdrawals

You seem to have thought your planning through pretty well. Have you fully considered the loss of human capital once you retiree. When working, people can be more aggressive in their investments because their human capital often offsets any major investment losses. People can often choose to work longer to recoup those losses or save more. Once you retire that option is no longer available, at least not to the same degree. You mentioned the possibility of some work during retirement which might help in this regard. 50/50 AA is not overly aggressive in your situation but perspectives often change after retirement. I know that mine did. Best wishes in your plans. I'm not sure I have fully considered the loss of human capital once I retire. Y...
by soar
Sun Dec 30, 2012 5:48 pm
Forum: Personal Investments
Topic: Nearing retirement - need help with FI and withdrawals
Replies: 29
Views: 3928

Re: Nearing retirement - need help with FI and withdrawals

I think there is a lot of sense in what you say. But I guess again I would advise caution. The thing about making life changes (retiring and moving to a new state), is that they are often very unpredictable and you never know when you are going to need liquidity and in what amounts and for how long. Let me give you an example- say he decides to move next year and finds his dream retirement house. Sometimes there's a real advantage to being a "cash buyer" vs. having to go through the mortgage process. You can close quicker, drive a harder bargain, etc. You can always take out a mortgage later, after you close if you want the tax deduction (within 90 days I think). If he were planning to stay put, I think the suggestion to pay down...
by soar
Sun Dec 30, 2012 5:39 pm
Forum: Personal Investments
Topic: Nearing retirement - need help with FI and withdrawals
Replies: 29
Views: 3928

Re: Nearing retirement - need help with FI and withdrawals

If you are about to retire and sell your house I don't think paying off the mortgage right now is a good idea. There is no guarantee that you will get that money back ... Huh? What do you mean there is no guarantee the OP will get that money back? I think Laura's point is a very good one. The OP has a house supposedly worth $700k and a mortgage for $400k. Let's say he pays off the mortgage in full and then wants to move in a year. But then he finds he can only get $600 k for it. And he doesn't want only $600k, he wants the $700k that its supposed to be worth so he decides not to sell, but to wait. The $400 k that he paid down the mortgage with is now tied up- i.e. it can't be easily pulled out. cheers, He doesn't have to pay down the whole...
by soar
Sun Dec 30, 2012 5:31 pm
Forum: Personal Investments
Topic: Nearing retirement - need help with FI and withdrawals
Replies: 29
Views: 3928

Re: Nearing retirement - need help with FI and withdrawals

21% Vanguard Limited-Term Tax-Exempt Fund Admiral (VMLUX) (0.12%) I guess I would point out that VMLUX has a yield of 0.64% (after tax) and has both credit risk and interest rate risk. Whereas FDIC insured savings accounts and CDs have no credit risk. The savings accounts have no interest rate risk and even the PenFed CDs have basically none since you can cash out at par and lose just one years interest (=2%). And yet the after tax yield on the savings accounts/CDs is actually similar to or higher than VMLUX. For a 7 year Pen Fed CD @ 2% pre tax yield, that is 1.5% after-tax (OP has said he would be in the 25% federal bracket). cheers, Grok. I have been reading your tips. They have been very helpful in my planning. The advantage of Limited...
by soar
Sun Dec 30, 2012 5:12 pm
Forum: Personal Investments
Topic: Nearing retirement - need help with FI and withdrawals
Replies: 29
Views: 3928

Re: Nearing retirement - need help with FI and withdrawals

If you are about to retire and sell your house I don't think paying off the mortgage right now is a good idea. There is no guarantee that you will get that money back ... Huh? What do you mean there is no guarantee the OP will get that money back? I think Laura's point is a very good one. The OP has a house supposedly worth $700k and a mortgage for $400k. Let's say he pays off the mortgage in full and then wants to move in a year. But then he finds he can only get $600 k for it. And he doesn't want only $600k, he wants the $700k that its supposed to be worth so he decides not to sell, but to wait. The $400 k that he paid down the mortgage with is now tied up- i.e. it can't be easily pulled out. cheers, That's exactly the kind of problem th...
by soar
Sun Dec 30, 2012 4:58 pm
Forum: Personal Investments
Topic: Nearing retirement - need help with FI and withdrawals
Replies: 29
Views: 3928

Re: Nearing retirement and need portfolio advice

... I am assuming that I should leave the FI in the IRA untouched until I convert the IRA to a Roth over the next 10 years. Am I thinking about this correctly? I am looking for suggestions for what to do with FI in both the taxable and non-taxable parts of the portfolio, and how to take out annual living expenses and rebalance the FI. I think you are thinking about this too much and trying to make it more complicated than it is. I recommend treating your portfolio as a single whole portfolio and not split up as two portfolios one in taxable and one in tax-advantaged. I would make withdrawals with an eye on paying no taxes, making big Roth conversions, and maintaing asset allocatoin. I would use the calculator at http://www.i-orp.com and Tu...
by soar
Sun Dec 02, 2012 11:55 pm
Forum: Personal Investments
Topic: Nearing retirement - need help with FI and withdrawals
Replies: 29
Views: 3928

Re: Nearing retirement - need help with FI and withdrawals

I assume you have gains in your taxable stock holdings so we won't change those here. If you have loses, go ahead and harvest them this year. In particular I would try to get out of the large cap index and into Total Stock Market so you have large, medium, and small cap companies covering the market. taxable 31% Vanguard Large-Cap Index Fund Admiral (VLCAX) (0.10%) 11% Vanguard FTSE All-World ex-US Index Fund Admiral (VFWAX) (0.18%) 9% Vanguard Total International Stock Index Fund Admiral (VTIAX) (0.18%) 21% Vanguard Limited-Term Tax-Exempt Fund Admiral (VMLUX) (0.12%) Laura Laura, I do have gains in all the taxable stock funds, as a result of TLH in early 2009. I would like to get back into Total Stock Market and have concerns about being...
by soar
Sun Dec 02, 2012 11:14 pm
Forum: Personal Investments
Topic: Nearing retirement - need help with FI and withdrawals
Replies: 29
Views: 3928

Re: Nearing retirement - need help with FI and withdrawals

Livesoft, bdpb, Grok and Laura,

I just wanted to take a moment and say thank you for your advice and thoughts. This is exactly the kind of help I was looking for. As you can see there are several life changes on the horizon and that makes for uncertainty.

I need a few days to absorb what you have said and I'll reply then on the fixed income side.

I'll reply to Laura's questions on the stock funds below.

Thanks again.
by soar
Tue Nov 27, 2012 10:31 pm
Forum: Personal Investments
Topic: Nearing retirement - need help with FI and withdrawals
Replies: 29
Views: 3928

Re: Nearing retirement and need portfolio advice

I agree with not contributing to a non-deductible tIRA unless you can convert it right away to a Roth, but that seems unlikely given your IRA. I have looked into that and, as you point out, I don't believe I can do the immediate Roth conversion. Your portfolio is apparently large enough that you should be able to only spend the dividends and not have to sell anything except losers in taxable. I don't think you have to commit to just withdrawing from fixed income in taxable. Wouldn't you want to withdraw what would help with rebalancing and also give you the least amount of taxes? That may be fixed income most of the time, but I would not assume that. You sort of mentioned this already. Just remember if you withdraw only fixed income, then ...
by soar
Tue Nov 27, 2012 2:18 pm
Forum: Personal Investments
Topic: Nearing retirement - need help with FI and withdrawals
Replies: 29
Views: 3928

Nearing retirement - need help with FI and withdrawals

[deleted at member's request]