Search found 678 matches

by Garco
Thu Feb 15, 2018 8:02 pm
Forum: Investing - Theory, News & General
Topic: How many of you use the "4% rule" during retirement?
Replies: 68
Views: 8177

Re: How many of you use the "4% rule" during retirement?

We sorta use "a" 4% rule but not the particular way the OP presented it. And not formally and to the penny. In our first few years of retirement (at age 70), we followed the RMD formula to determine our distributions from our tax deferred investments. This meant less than 4% withdrawals in the first...
by Garco
Sun Feb 11, 2018 10:30 am
Forum: Investing - Theory, News & General
Topic: how did you determine your risk tolerance?
Replies: 103
Views: 4888

Re: how did you determine your risk tolerance?

To the OP. Thirty-three, eh? I'd be 75% equities, too. In fact when I was age 30-55, I was always contributing 75% to equities in my tax deferred retirement plan. Never touched a thing, through ups and downs in the market between 1974 and 1999. I was focused on my family and my career! Stock market ...
by Garco
Thu Feb 08, 2018 8:48 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: 4 Horsemen Of Your Portfolio
Replies: 108
Views: 10360

Re: Larry Swedroe: 4 Horseman Of Your Portfolio

Thanks for posting this excellent article, Dave. I believe Larry states the problem realistically and well. It is not a pretty picture but if we are to plan effectively for our future retirement needs, we need to make realistic assumptions about what that future is likely to be. International diver...
by Garco
Tue Feb 06, 2018 8:02 am
Forum: Investing - Help with Personal Investments
Topic: Stay the course?
Replies: 65
Views: 7148

Re: Stay the course?

I'm not doing one single thing to my investments during this crisis market. I don't need cash. I don't try to make a million by trading. I have a well designed portfolio accumulated over 40 years. Two things are certain about the stock market: it goes up and it goes down. I'm sitting tight.
by Garco
Mon Feb 05, 2018 8:17 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalance after today's drop?
Replies: 32
Views: 4367

Re: Rebalance after today's drop?

I lost many thousands today. But rebalance now? Why? The basic asset allocation did not change all that much. And since I'm retired, I'm inclined to sleep in the bed that I've made. A good variety of investments. And a cache of cash sufficient to cover my required minimum distributions more more tha...
by Garco
Sun Jan 28, 2018 2:08 pm
Forum: Investing - Theory, News & General
Topic: 401k millionaires
Replies: 158
Views: 23677

Re: 401k millionaires

Some posters here appear to assume that only the very high earners can contribute 15% to a 401k. This doesn't take into account that some employers mandate 10-12% contributions, often including a partial employer match. Back when I was early in my career in the 1970's, I took a position in which my ...
by Garco
Sun Jan 28, 2018 11:11 am
Forum: Investing - Theory, News & General
Topic: increasing stock allocation in retirement
Replies: 16
Views: 883

Re: increasing stock allocation in retirement

TNBoy wrote: I agree there is no magic bullet here, but a conservative allocation at retirement (say 40 to 50% equity) will still show nice gains if there is a good sequence of returns early in retirement. Most likely, the portfolio value will increase even while withdrawals are being made. Now for ...
by Garco
Fri Jan 26, 2018 12:05 am
Forum: Personal Consumer Issues
Topic: Your favorite beach vacation destination?
Replies: 64
Views: 5140

Re: Your favorite beach vacation destination?

Our favorite summer vacation destination is the coast of Maine. Usually in the general vicinity of Mt. Desert Island (Bar Harbor etc.), usually in Hancock County. We rent a house for 2-3 weeks, and our (grown) kids come up there, too. My wife has been a Maine person her entire life; I first went to ...
by Garco
Tue Jan 23, 2018 11:33 am
Forum: Investing - Help with Personal Investments
Topic: Losing job soon but have big nest egg -- problem?
Replies: 20
Views: 2958

Re: Losing job soon but have big nest egg -- problem?

Thanks, Niceguy! Sorry, I missed the $200K in 529 plans in the OP's list. I would hope the sum at least doubles by the time the kids apply to college.
by Garco
Tue Jan 23, 2018 11:12 am
Forum: Investing - Help with Personal Investments
Topic: Losing job soon but have big nest egg -- problem?
Replies: 20
Views: 2958

Re: Losing job soon but have big nest egg -- problem?

You have two kids who will be entering college in 10 and 15 years. I don't see that you've set up 529 plans or made other arrangements for this. If you want the kids to have good options, you need to start saving now. A round estimate of the total costs of attendance 10-15 years from now might be $7...
by Garco
Mon Jan 22, 2018 10:05 am
Forum: Investing - Help with Personal Investments
Topic: 50/50 AA recommended by Benjamin Graham
Replies: 43
Views: 4475

Re: 50/50 AA recommended by Benjamin Graham

There's nothing wrong with 50-50 for a young person, but I was 75-25 for my first 25 years of investing, and then got too aggressive (over 80% stocks, and heavy into hi-tech) during the dot-com affair, and I paid for it! I did recover in about 3.5 years, but since then never held that large a percen...
by Garco
Sun Jan 21, 2018 11:09 pm
Forum: Investing - Help with Personal Investments
Topic: which Brokerage do you use...why?
Replies: 48
Views: 5819

Re: which Brokerage do you use...why?

I use Fidelity because: a) As a brokerage, it's plenty good, I like their web interface, they're responsive when I have questions. b) I have tax deferred accounts at Fidelity, and this makes it easy for me to make certain kinds of transfers. c) The interface with my bank works well when I need to tr...
by Garco
Sun Jan 21, 2018 7:06 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA - How do I tell the tax year of a contribution?
Replies: 9
Views: 472

Re: TIAA - How do I tell the tax year of a contribution?

I noticed the same thing on some other transactions that actually occurred on December 29th but didn't snow up in my TIAA account until January 2. When I look at year-end summaries of my specific holdings now, TIAA did attribute the transfer to 2017.
by Garco
Sun Jan 21, 2018 2:13 pm
Forum: Investing - Help with Personal Investments
Topic: Pull back on retirement saving to increase savings for kids' college?
Replies: 31
Views: 2438

Re: Pull back on retirement saving to increase savings for kids' college?

My 2 cents. We got two kids through elite (non-Ivy) private colleges in 1996-2003. The total costs for each were about $125-$130K including room and board. We managed via savings plus some contributions by our own parents. Kid 1 then went on to a very good career, now earning 5-10 times per year wha...
by Garco
Sun Jan 21, 2018 11:21 am
Forum: Investing - Help with Personal Investments
Topic: A 4-5% rebalance to bonds barely budges risk/return
Replies: 43
Views: 3538

Re: A 4-5% rebalance to bonds barely budges risk/return

If you're really concerned, then you can consider a larger rebalance. As I moved to retirement in my late 60's, I definitely did that b/c my income flow depended increasingly on returns from my investments. But a dinky 4-5% rebalance while you're still employed and in your 40's doesn't change your r...
by Garco
Sun Jan 21, 2018 10:27 am
Forum: Local Chapters and Bogleheads Community
Topic: My daughter got her dream job [Proud Papa]
Replies: 39
Views: 3481

Re: My daughter got her dream job

Here's to your daughter's success. I'm all for daughters (and sons), wish I could have another one!! But I did my part, so to speak. And kids are well launched.
by Garco
Sat Jan 20, 2018 12:45 pm
Forum: Investing - Help with Personal Investments
Topic: Choosing 403(b) TIAA Investments
Replies: 22
Views: 1152

Re: Choosing 403(b) TIAA Investments

@kmstx-- IMO, TIAA is definitely the best plan administrator among the options you have. Also, as I reflect on the fact that this may be a supplement to your main pension, I think being a little bit more adventuresome or aggressive in your selection of investment options is OK. At age 25, you are in...
by Garco
Fri Jan 19, 2018 10:50 pm
Forum: Investing - Help with Personal Investments
Topic: Choosing 403(b) TIAA Investments
Replies: 22
Views: 1152

Re: Choosing 403(b) TIAA Investments

I don't like your mid/small cap options. If you ever are offered better ones (including TIAA MC or SC), consider adding them. * next to item below means that I currently own it. I have better LC options, so I don't own CREF Stock. I recommend: 30% CREF Stock (70% US; 30% non-US) 15% CREF Social Choi...
by Garco
Fri Jan 19, 2018 10:52 am
Forum: Investing - Theory, News & General
Topic: Rebalancing in last 12 months
Replies: 19
Views: 1452

Re: Rebalancing in last 12 months

In my taxable (brokerage) account, I don't rebalance for the sake of better balance but may buy or sell certain holdings based on the market, e.g., in one or two more speculative investments. This account also provides income (cash) that augments my family budget. In my tax deferred accounts, I basi...
by Garco
Thu Jan 18, 2018 10:58 pm
Forum: Investing - Help with Personal Investments
Topic: Saving for college
Replies: 3
Views: 300

Re: Saving for college

https://en.wikipedia.org/wiki/529_plan

There are tax advantages from most 529 plans. Read the above and then study up using other sources. A great investment vehicle.
by Garco
Thu Jan 18, 2018 9:49 pm
Forum: Investing - Theory, News & General
Topic: International Bonds
Replies: 31
Views: 3645

Re: International Bonds

I've only ever owned one dedicated international FI fund. FNMIX. It comprises the entire FI share of one of my supplemental tax deferred retirement funds (403b). It's been a good investment. http://www.morningstar.com/funds/XNAS/FNMIX/quote.html
by Garco
Thu Jan 18, 2018 2:26 pm
Forum: Investing - Theory, News & General
Topic: AA is much harder than I thought...
Replies: 45
Views: 4978

Re: AA is much harder than I thought...

I'm not 27 or 33. I'm 72. It pains me to be missing out on all those stock increases. I could have earned hundreds of thousands more in the last 12 months if I'd been all equities! Ouch!!! But deep down I'm laughing all the way to the bank. The fact is that even if I might have had those hundreds of...
by Garco
Wed Jan 17, 2018 9:40 am
Forum: Investing - Theory, News & General
Topic: Anyone pondering moving to a cheaper place and downsizing?
Replies: 63
Views: 4625

Re: Anyone pondering moving to a cheaper place and downsizing?

We're in process of moving to a more expensive place and downsizing.

That is, we've bought a condo in a nice community, for an amount that exceeds the value of our previous home. But with no external or yard upkeep headaches and costs, though of course condo fees and property taxes.
by Garco
Mon Jan 08, 2018 11:34 am
Forum: Investing - Theory, News & General
Topic: Memo to those who have won the game: it's time to quit playing
Replies: 210
Views: 18200

Re: Memo to those who have won the game: it's time to quit playing

I'm still in the early years of retirement (entering 5th year), and I have sufficient invested resources (>$3 million) plus real property to live comfortably without taking a lot of risk. SS is nice to have and covers about 1/3 of my ordinary spending needs. But there's always a temptation to respon...
by Garco
Sun Jan 07, 2018 4:00 pm
Forum: Investing - Help with Personal Investments
Topic: Does it make sense to try to "time" a first time home purchase?
Replies: 48
Views: 2266

Re: Does it make sense to try to "time" a first time home purchase?

I think timing the L.A. housing market in expectation of lower prices is foolish. You could get lucky. You could end up feeling like a fool. In the meantime, if you wait to purchase you're paying rent to somebody who's making a profit on money that you could be putting into your own property. True, ...
by Garco
Sat Dec 30, 2017 8:56 pm
Forum: Personal Finance (Not Investing)
Topic: Target Net Worth
Replies: 39
Views: 4617

Re: Target Net Worth

I built SS into my targeting. Expected SS to provide 25-30% of income in retirement. So any formula such as Desired Ann Income/.035 would need to be adjusted. For example if your target annual income is $150K and your SS is $50K per year, you would need to reach 100000/.035= $2.8 million, not $4.3 m...
by Garco
Sat Dec 30, 2017 2:34 pm
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 1752
Views: 312044

Re: What are you up YTD? [Year To Date]

I have several types of account, of different sizes and risk profiles.

1. Core 403b (45% equities): +13% TR in 2017.

2. Supplemental retirement accounts (403b SRA, 457b -- 80-85% equities): +19-20% TR in 2017.

3. Taxable (brokerage -- 65% equities, somewhat income focused): +14.8% TR in 2017.
by Garco
Sat Dec 30, 2017 12:58 pm
Forum: Investing - Theory, News & General
Topic: How did you guys do in 1966 - 1980?
Replies: 34
Views: 3263

Re: How did you guys do in 1966 - 1980?

I didn't get into the job market full-time until 1971. On my first job, I contributed 12% of my gross salary (which was $11,500 in 1971 -- 4% from me; 8% from my employer). But when I moved to a different job in 1975, I began to contribute 15% of my gross salary (5% from me, 10% from my employer). I...
by Garco
Fri Dec 29, 2017 8:20 pm
Forum: Investing - Help with Personal Investments
Topic: Maxing out retirement accounts
Replies: 55
Views: 4166

Re: Maxing out retirement accounts

My employer made it so easy that I'd have had to be stupid not to max the fund out. My employer contributed 10% to my 401k, while I was required to "match" with 5% of my gross pay. So ~15% of my annual salary went into the core fund. After ~40 years of such mandatory contributions, to which I began ...
by Garco
Sat Dec 16, 2017 6:54 pm
Forum: Investing - Theory, News & General
Topic: 2nd million is easier!
Replies: 123
Views: 23928

Re: 2nd million is easier!

The latest $1.5 million was by far the easiest. We did nothing but survive our parents, who graciously gifted most of their estate to their children. Of course, that money really would have been handy 20 years ago when we were supporting our children's college educations. But we're grateful to have ...
by Garco
Sun Dec 10, 2017 8:18 pm
Forum: Investing - Theory, News & General
Topic: Vanguard economic and market outlook for 2018
Replies: 33
Views: 3674

Re: Vanguard's 2018 Outlook has extremely low expected returns

The concern about rising wage pressure strikes me as schizophrenic, because we've been told that new tax policies should lead to higher wages and are beneficial to workers. But in this article we are supposed to put on our inflation phobia hats and read rising wages as a negative.
by Garco
Sun Dec 10, 2017 11:36 am
Forum: Investing - Theory, News & General
Topic: How should I look at SS and pensions when developing my post-FRA AA?
Replies: 30
Views: 1189

Re: How should I look at SS and pensions when developing my post-FRA AA?

As a recent retiree, I have three sources of income. 1. My 401k from 38 years of employment, 2. Social Security, 3. Other investments and cash savings. I live on the income generated from 1 and 2. In the case of the 401k, it's my required minimum distribution (RMD); and in future years only a fracti...
by Garco
Sun Dec 03, 2017 11:46 am
Forum: Investing - Theory, News & General
Topic: Which crash have you seen it before it is coming?
Replies: 134
Views: 10329

Re: Which crash have you seen it before it is coming?

OK, get ready. THERE WILL BE ANOTHER CRASH. The main question is "When?" Another question is "How severe and for how long?" A related question is "Will the crash be associated with widespread unemployment?" For me, as a retiree, unemployment doesn't affect me directly but it could well affect my kid...
by Garco
Sun Dec 03, 2017 10:05 am
Forum: Investing - Theory, News & General
Topic: What did you do right?
Replies: 96
Views: 10018

Re: What did you do right?

This will echo several others postings here: 1. 1 marriage. 2. 1 house (until retirement), 1 car at a time, no expensive toys, vacations mainly with extended family (low rent). 3. 2 kids through college with no debt (we saved, and we paid). 4. stayed healthy, which is part luck (good genes, no major...
by Garco
Sat Dec 02, 2017 9:37 am
Forum: Investing - Theory, News & General
Topic: Amount You Need To Save Annually Over Lifespan
Replies: 80
Views: 9352

Re: Amount You Need To Save Annually Over Lifespan

To add to my previous comment about unfailingly contributing 15% of my gross salary for 38 years to my retirement fund, I'd like to emphasize the importance of persistence. Don't stop contributing, don't borrow or withdraw cash, and consider that when you retire you will likely be able to maintain y...
by Garco
Fri Dec 01, 2017 11:56 pm
Forum: Personal Consumer Issues
Topic: Price of haircut?
Replies: 194
Views: 11299

Re: Price of haircut?

$16, plus $5 tip. Michigan.
by Garco
Fri Dec 01, 2017 11:01 pm
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 1752
Views: 312044

Re: What are you up YTD? [Year To Date]

2017 PRR (personal rate of return) through November 30, 2017 varies with the type of account and risk profile of investments. I'm retired.

Core 401k: 12.2% ytd based on AA 45% to equities.

Supplemental SRA: 18.2% ytd based on AA 75% to equities.
by Garco
Fri Dec 01, 2017 10:42 pm
Forum: Investing - Theory, News & General
Topic: Amount You Need To Save Annually Over Lifespan
Replies: 80
Views: 9352

Re: Amount You Need To Save Annually Over Lifespan

Exactly right for me. Saved/invested 15% of gross pay for 38 years in a 401K, and ended up with about $2.5M. My first year gross salary was about $16K and my last year was about $180K. Now I'm taking RMD's out, and have SS on top of that. My gross income from these sources is lower than my gross inc...
by Garco
Sun Nov 19, 2017 2:17 pm
Forum: Investing - Theory, News & General
Topic: Is treating all accounts as one bucket really simpler
Replies: 21
Views: 2957

Re: Is treating all accounts as one bucket really simpler

For us it's not practical, and not worth the effort to treat all accounts as one bucket. In all, we have 5 accounts. 1 403b retirement account (RA), 3 supplemental retirement accounts (403b and 457b), and 1 brokerage account (taxable). I focus most of my attention on the main RA, since I grew up wit...
by Garco
Thu Nov 16, 2017 10:56 pm
Forum: Investing - Theory, News & General
Topic: The 4% rule DOES fail but still makes sense!
Replies: 195
Views: 16278

Re: The 4% rule DOES fail but still makes sense!

I "believe in" the 4% rule as a very good approximation of how proceed to draw on your stash. But I also take a few additional things into account in my planning. First, I can meet about 25-33% of my spending needs from SS. Even when I have to take >4% from my 401k due to RMD's, I don't need to spen...
by Garco
Wed Nov 08, 2017 5:39 pm
Forum: Investing - Help with Personal Investments
Topic: RMD distribution timing
Replies: 32
Views: 2853

Re: RMD distribution timing

I like to spread the risk and the income across the year. So I take my RMD's near the end of each quarter; I pay state and federal income taxes at the time of each distribution. Since I'm also receiving Social Security, I have a monthly income as well. If I need more cash for some reason -- a purcha...
by Garco
Sun Oct 15, 2017 10:42 pm
Forum: Investing - Help with Personal Investments
Topic: Adding funds to portfolio full of individual stocks
Replies: 7
Views: 650

Re: Adding funds to portfolio full of individual stocks

I think all of these funds have ETF equivalents, and likely somewhat lower ER's.
by Garco
Sun Oct 15, 2017 9:31 pm
Forum: Investing - Help with Personal Investments
Topic: Thinking we are close to winning the game
Replies: 40
Views: 7287

Re: Thinking we are close to winning the game

To the OP. Things look good to me, for the most part. I wonder how much you expect college costs to run. If your kids are thinking of private college, for example, you have to think in the range of $50-60K per year for each of them (tuition, room and board, travel, other expenses). Back in the days ...
by Garco
Sat Oct 14, 2017 3:44 pm
Forum: Investing - Theory, News & General
Topic: 10 year anniversary of the beginning of the Great Recession
Replies: 45
Views: 4816

Re: 10 year anniversary of the beginning of the Great Recession

October 2008 was when I concluded that I shouldn't pursue early retirement. There were other reasons as well, such as that my daughter decided it was better for her to go back to school (for an MBA) for a couple of years than to muddle through the economy. I ended up footing much of the bill for tha...
by Garco
Sat Oct 14, 2017 10:54 am
Forum: Investing - Theory, News & General
Topic: What's your asset allocation and why?
Replies: 176
Views: 18633

Re: What's your asset allocation and why?

I'm retired, drawing Social Security and Required Minimum Distributions (RMD's). In my main tax-deferred retirement account, I currently have 45% equities, 10% in real estate, and the rest in bonds and multi-asset funds (VBTIX, PAAIX, PTTRX) and cash. I am limiting my exposure to market risk but sti...
by Garco
Sat Oct 14, 2017 10:42 am
Forum: Investing - Theory, News & General
Topic: How do you define your income when it is mentioned in the articles (before tax or after tax)?
Replies: 3
Views: 558

Re: How do you define your income when it is mentioned in the articles (before tax or after tax)?

When a poster doesn't indicate anything, I assume gross salary or pay from work (before payroll taxes,income taxes, etc.). When I was still working, in my own vocabulary "income" meant my gross salary. ("Son, how much are you making now," my mother might ask. I told her my salary.) And that's what I...
by Garco
Sun Oct 08, 2017 8:19 pm
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 1752
Views: 312044

Re: What are you up YTD? [Year To Date]

October 6, 2017 Portfolios are all over the place. At end of September, total return in my core port (403b retirement fund, ~45% equities ) is +10.0% YTD. My supplemental , smaller, and more aggressive ( ~80% equities) supplemental ports YTD (Oct. 6): +14.7%, +15.7%, and +15.7%. Taxable investment a...
by Garco
Sun Oct 08, 2017 5:59 pm
Forum: Investing - Help with Personal Investments
Topic: How big a portfolio should I have before retiring?
Replies: 52
Views: 7517

Re: How big a portfolio should I have before retiring?

I had a simple goal. Accumulate enough so that using a Safe Withdrawal Rate (SWR) strategy, and adding my Social Security receipts, I could generate gross income that equals at least 80% of my pre-retirement annual income from work. You'll find various versions of this approach. The idea that you o...
by Garco
Sat Oct 07, 2017 9:40 pm
Forum: Investing - Help with Personal Investments
Topic: How big a portfolio should I have before retiring?
Replies: 52
Views: 7517

Re: How big a portfolio should I have before retiring?

I had a simple goal. Accumulate enough so that using a Safe Withdrawal Rate (SWR) strategy, and adding my Social Security receipts, I could generate gross income that equals at least 80% of my pre-retirement annual income from work. You'll find various versions of this approach. The idea that you on...