Search found 726 matches

by Garco
Sat May 02, 2020 10:29 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe..Four Investment lessons from Covid
Replies: 56
Views: 7971

Re: Larry Swedroe..Four Investment lessons from Covid

The "Lessons from COVID" are going to be different for people at different stages of their investing careers. When one is already retired, it's a lot harder to think long-term (unless one is focused on the next generation). At the same time, if one is already retired and has created a safe-harbor re...
by Garco
Thu Apr 16, 2020 2:55 pm
Forum: Investing - Theory, News & General
Topic: What percentage of your paycheck do you invest?
Replies: 268
Views: 16351

Re: What percentage of your paycheck do you invest?

I'm late to this thread. But here's what I did while I still had a paycheck. I have been retired for 5 years. My fully employed years numbered 44. 4 years: 4% of gross per year, matched by 8% from my employer to a state retirement system plan (so total of 12% per year) . 39 years: 5% of gross salary...
by Garco
Sat Apr 11, 2020 1:20 pm
Forum: Investing - Theory, News & General
Topic: Emergency Fund - part of Asset Allocation?
Replies: 93
Views: 3116

Re: Emergency Fund - part of Asset Allocation?

I'm retired. My only sources of regular income are: 1) Social Security, 2) RMD's from my tax-deferred ("retirement") accounts, and 3) Dividends and interest in my (taxable) brokerage account. I don't keep an "emergency fund." My "cash" savings amount is small. But I pay attention to cash flow, i.e.,...
by Garco
Sat Apr 11, 2020 11:59 am
Forum: Investing - Theory, News & General
Topic: How long after starting investing, did you start to be happy about the power of compounding?
Replies: 92
Views: 6074

Re: How long after starting investing, did you start to be happy about the power of compounding?

After 4 years in a real job after I finished grad school, I had zero vested retirement dollars (I lost most of my retirement funds by moving to a new job). So it was only in my 5th year -- in 1975 -- that I got a proper retirement account at my new employer. Then I did the right thing: I IGNORED the...
by Garco
Sat Apr 11, 2020 9:46 am
Forum: Investing - Theory, News & General
Topic: How long after starting investing, did you start to be happy about the power of compounding?
Replies: 92
Views: 6074

Re: How long after starting investing, did you start to be happy about the power of compounding?

When I took my first real job after finishing graduate school in 1975, I had a salary of $11,500 (plus $2,000 in summer pay). I contributed 5% of gross to a state retirement system, which was matched by my employer. When I left that job after 4 years my employer kept the state's part and returned th...
by Garco
Sun Mar 01, 2020 10:02 am
Forum: Investing - Theory, News & General
Topic: The Dark Side of "Stay the Course"
Replies: 202
Views: 16426

Re: The Dark Side of "Stay the Course"

Some good responses to the OP. "Stay the course" makes great sense if you have a good course to begin with. Events like the one we're going through now are a good time to reflect on your plan. But this is maybe not a time to take immediate action (trades, transfers, reallocations) when the markets a...
by Garco
Sun Feb 09, 2020 2:02 pm
Forum: Investing - Theory, News & General
Topic: 30/70 is as good as 60/40
Replies: 110
Views: 8001

Re: 30/70 is as good as 60/40

The strategy may well depend a lot on how old you are and what stage in career you are at now . I'm 75 years old, retired for 5.5 years. Living on Social Security + RMD's from my main 401k retirement account. In addition I have a much smaller investment account that's a mix with about 33% in tax-def...
by Garco
Sat Dec 28, 2019 10:06 pm
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 2980
Views: 528501

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

Raw difference in total in retirement account Dec 27, 2019 minus amount on Dec 31, 2018: 11.25%. Since I am retired, and taking required minimum distributions, that 11.25% doesn't take into account money that was distributed as income from RMD's during 2019, which would be roughly 5.2%. I'm happy to...
by Garco
Fri Nov 22, 2019 9:37 pm
Forum: Investing - Theory, News & General
Topic: How much money do you need to create generational wealth?
Replies: 78
Views: 8530

Re: How much money do you need to create generational wealth?

My 45-year working career after I finished college led me to a retirement fund of about $2.5 million, which using a safe withdrawal rate plus Social Security gives me a nice income in retirement. We were fortunate to receive bequests ourselves on top of the $2.5 million retirement fund. So our annua...
by Garco
Sat Jul 13, 2019 8:30 pm
Forum: Investing - Theory, News & General
Topic: Americans believe they need $1.7 million, on average, to retire
Replies: 284
Views: 32113

Re: Americans believe they need $1.7 million, on average, to retire

For us, $1.7 MM would have been a good bare minimum that we could live comfortably on when I retired. Working til age 70 allowed me (one earner in our HH) to accumulate about 50% more than that minimum at retirement, i.e., about $2.5 MM. External sources (I'll call it family intergenerational wealth...
by Garco
Fri May 03, 2019 11:21 am
Forum: Investing - Theory, News & General
Topic: Re-Examining an assumption: 45% bonds in retirement?
Replies: 95
Views: 12664

Re: Re-Examining an assumption: 45% bonds in retirement?

I don't like the part of the headline that reads "45% bonds in retirement ." The length of the retirement phase of your life depends on (a) your age at retirement and (b) how long you live. You can usually determine (a) but not (b). But if you retire with a sizeable portfolio and no debt, and if you...
by Garco
Tue Feb 05, 2019 12:02 pm
Forum: Investing - Theory, News & General
Topic: If you are old, why bother with rebalancing!!?
Replies: 115
Views: 9966

Re: If you are old, why bother with rebalancing!!?

It's not just portfolio size (relative to spending needs) that matters. Income sources matter, for example, from Social Security -- perhaps SS earned by two members of the household. I'm retired and over 70. I do not worry about income. I "rebalance" but not following a rigorous routine. I described...
by Garco
Tue Feb 05, 2019 11:13 am
Forum: Investing - Theory, News & General
Topic: Asset Allocation Question
Replies: 7
Views: 1120

Re: Asset Allocation Question

So what does a 70-something person do? In my case, I didn't much worry about asset allocation (AA) as long as I was still employed and drawing a paycheck. I was living on that paycheck (net of money automatically put into my retirement fund) and also saving outside my retirement fund, especially sav...
by Garco
Fri Feb 01, 2019 11:16 am
Forum: Personal Finance (Not Investing)
Topic: Cost of college and 529
Replies: 642
Views: 27863

Re: Cost of college and 529

In the 1980's and 90's -- an era before 529 plans had come into vogue (some states had initiated them but they weren't widespread) -- we did an "estimate" that the total cost would be ca. $130K-150K for each kid. But on my salary there were limits to what we could really accumulate. We did stick wit...
by Garco
Mon Jan 21, 2019 9:10 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Investing Lessons From 2018
Replies: 5
Views: 1503

Re: Larry Swedroe: Investing Lessons From 2018

Yah, TIAA Traditioanal and TIAA Real Estate were net income warriors for me, too. They make up 25% of my account value. But there were few other investments in that account that broke even for the year. So it was a losing year but not a large percentage: -2.4%. Lesson for me? Given the performance o...
by Garco
Mon Jan 07, 2019 2:45 pm
Forum: Investing - Theory, News & General
Topic: For those retired a few years
Replies: 58
Views: 5368

Re: For those retired a few years

When I retired my wife remained the master of our home, but didn't have job outside of that. What changed most was that I wasn't going to work! That left me with 60+ hours a week that previously had been spent on commuting, working (overtime typically), and doing my "homework." Our income shifted to...
by Garco
Mon Jan 07, 2019 11:04 am
Forum: Investing - Theory, News & General
Topic: How do you view a savings surplus in retirement?
Replies: 117
Views: 6808

Re: How do you view a savings surplus in retirement?

Three views on that situation. 1. "What a nice cushion I have!" I'll try to maintain it while being careful with the rest. 2. "Oh Boy! Now I can buy that boat, and a mooring at the Marina!" I'll treat myself to something I've always wanted. 3. "Now we can help some people!" I'll increase charitable ...
by Garco
Fri Jan 04, 2019 11:47 am
Forum: Investing - Theory, News & General
Topic: Just what is long-term investing?
Replies: 13
Views: 894

Re: Just what is long-term investing?

For me the idea of "long-term investing" meant either investing for a lifetime, til retirement, or for some other long-term goal such as purchasing our first house or covering the college costs of our children. In any of these cases, I was looking for safe long-term return, not maximizing short-term...
by Garco
Wed Jan 02, 2019 7:06 pm
Forum: Personal Finance (Not Investing)
Topic: Share your net worth progression
Replies: 1484
Views: 388126

Re: Share your net worth progression

I'm not going to post year-specific numbers. But I started my working career (after grad school) with no savings and a salary of $14,000. I ended my career 43 years later with an accumulation of $3,500,000 + real property worth $600,000. My maximum annual salary was ~190K. The main reasons my net wo...
by Garco
Wed Jan 02, 2019 12:15 pm
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 2980
Views: 528501

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

Summary for 2018: -2.4% total return in my tax deferred retirement account. I was doing great there for a while!
by Garco
Sun Dec 09, 2018 12:25 pm
Forum: Investing - Theory, News & General
Topic: Has anyone adjusted their stock allocation on the dip?
Replies: 71
Views: 6106

Re: Has anyone adjusted their stock allocation on the dip?

I've let the market do the adjustments so far. There's so much volatility in the market that I don't see a better allocation than I have now, though for sure I've lost money on paper. As a retiree, now taking required minimum distributions, the market decline means that I'll have slightly smaller "p...
by Garco
Thu Dec 06, 2018 10:49 pm
Forum: Investing - Theory, News & General
Topic: Who else is getting excited? [about the market]
Replies: 145
Views: 14190

Re: Who else is getting excited? [about the market]

I'm in withdrawal mode via required minimum distributions (RMD's) in my 401k. All the money that I'm expecting to take as a distribution over the next 24 months is in cash -- money market. It has risk of diminishing due to inflation, but I will meet my required distributions, without having to sell ...
by Garco
Fri Nov 30, 2018 9:55 pm
Forum: Investing - Theory, News & General
Topic: TIAA: compensation of Wealth Management Advisor
Replies: 21
Views: 3922

Re: TIAA: compensation of Wealth Management Advisor

Quite a few years ago, when TIAA first implemented their Wealth Management Advisor system, there was some effort to move regular long-term TIAA investors into fee-based (1% of AUM) advising. I rejected the offer, but I consider it good that TIAA does have a system for more active advising for my sur...
by Garco
Fri Oct 26, 2018 9:23 am
Forum: Investing - Theory, News & General
Topic: In retirement, when do you stop withdrawing from stocks in a downturn?
Replies: 141
Views: 10632

Re: In retirement, when do you stop withdrawing from stocks in a downturn?

I'm in the "decumulation stage." I'm retired, over age 70, and receiving most of my monthly cash from Social Security and required minimum distributions (RMD's) from my tax deferred pension plan (401k). So when do I stop withdrawing from stocks in this downturn? I have stopped, even for my RMD's, be...
by Garco
Wed Oct 17, 2018 11:13 am
Forum: Investing - Theory, News & General
Topic: "Retirement age uncertainty increases the savings needed for success"
Replies: 48
Views: 5151

Re: "Retirement age uncertainty increases the savings needed for success"

I think a lot of random and nonrandom factors come into play in determining actual retirement age. In my profession (academia) it is rare for people to voluntarily retire early. The question for those who have successful careers and perhaps also "tenure," is whether to retire at full Social Security...
by Garco
Wed Oct 17, 2018 10:53 am
Forum: Investing - Theory, News & General
Topic: Vanguard screws up rollover from TSP
Replies: 41
Views: 5675

Re: Vanguard screws up rollover from TSP

I'll just log myself here as a Boglehead who does not have a VG account. That's mainly because my employer did not offer VG as a plan sponsor. It offered TIAA and Fidelity. I have investments in both the TIAA and Fido plans. And I own some VG funds in both of them. A year ago when my daughter took a...
by Garco
Tue Oct 16, 2018 1:12 pm
Forum: Investing - Theory, News & General
Topic: Monthly vs. Annual Withdrawals
Replies: 22
Views: 2432

Re: Monthly vs. Annual Withdrawals

I'm taking required minimum distributions (RMD's) from my tax deferred account. I take the money out on a quarterly basis. That works reasonably well, and is a compromise between the alternatives proposed by the OP. I've been thinking of moving to monthly, just because of the "paycheck" feeling as t...
by Garco
Tue Oct 16, 2018 11:35 am
Forum: Personal Investments
Topic: Time to reach 1M and 2M milestones
Replies: 171
Views: 62665

Re: Time to reach 1M and 2M milestones

With a 75-25 portfolio from 1975 (contributing 15% every year, beginning when my salary was <$20K in 1975), I first reached $1 Million in 1999. When the market crashed in March 2001 ("Dotcom crash"), I dropped below $1 Million. (I had been heavily exposed to tech stocks.) The account again got above...
by Garco
Mon Oct 15, 2018 2:54 pm
Forum: Personal Investments
Topic: 30 yr old needing rebalance advice for current 401k
Replies: 19
Views: 1657

Re: 30 yr old needing rebalance advice for current 401k

After reading your earlier posts, and this end-result plan -- including moving funds from previous employer into current funds -- I think this is a good allocation for some period of time. The most important thing for you to build your retirement fund is TIME. Keep at it. Added: When those babies ar...
by Garco
Mon Oct 15, 2018 4:49 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: 2018 Good For Gurus
Replies: 7
Views: 1203

Re: Larry Swedroe: 2018 Good For Gurus

Oh I took the historically based advice to keep 20% of my retirement funds in international. I never much liked history in school. I should have followed my feelings and not the advice.
by Garco
Mon Oct 15, 2018 4:22 am
Forum: Investing - Theory, News & General
Topic: A time to EVALUATE your jitters
Replies: 417
Views: 398620

Re: A time to EVALUATE your jitters

At Monday preopen I have one firm resolution. I will not trade. There is no other action that I can take with any confidence. I don’t need any cash from my investments for another month, when I must take a quarterly RMD from my main tax deferred investment account. That RMD will come from cash (mone...
by Garco
Fri Oct 05, 2018 11:21 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Be Prepared For Losses
Replies: 150
Views: 22029

Re: Larry Swedroe: Be Prepared For Losses

As a retiree, if the market dropped 50% I'd be a very unhappy camper, but I wouldn't be lost or broke. I reduced my exposure to equities when I neared retirement, and then some more when I actually retired. To meet my RMD, I have about 2 years of distributions in CASH (money market fund), and >50% o...
by Garco
Wed Jul 25, 2018 8:51 pm
Forum: Personal Investments
Topic: What are the best options for a home equity line of credit?
Replies: 8
Views: 891

Re: What are the best options for a home equity line of credit?

In my case the best option is a HELOC at my employer's "federal credit union." Currently 5.00% APR. I've already established my eligibility and this is my main bank for all purposes (checking, savings, mmf, credit card). So it's easy for me to transfer cash to/from the HELOC and other subaccounts.
by Garco
Wed Jul 25, 2018 12:06 pm
Forum: Personal Investments
Topic: 401k asset allocation
Replies: 9
Views: 599

Re: 401k asset allocation

Well good luck in getting through the next 4 years without a major market pullback of some kind. I managed for the bulk of my investing career from age 27 to age 50-55 to keep 75-25 ratio to my contributions from salary, which led to about an 85% equities distribution. Then a couple of major recessi...
by Garco
Wed Jul 25, 2018 12:01 pm
Forum: Personal Investments
Topic: 401k asset allocation
Replies: 9
Views: 599

Re: 401k asset allocation

You're young so my comment here doesn't matter much, but I would be putting ~20% in to fixed income of some kind.
by Garco
Sun Jul 08, 2018 8:08 pm
Forum: Investing - Theory, News & General
Topic: Spending Patterns in Retirement: Retirees are Slow to Exhaust their Assets
Replies: 16
Views: 3955

Re: Spending Patterns in Retirement: Retirees are Slow to Exhaust their Assets

At age 74, I'm just beginning my 5th year of retirement. With Social Security and retirement fund investments that I contributed to for 40 years, I'm not drawing down my assets. That has to do with the performance of my invested portfolio (mainly tax deferred accounts) especially since the last elec...
by Garco
Mon Jun 25, 2018 10:31 am
Forum: Investing - Theory, News & General
Topic: What’s the magic savings rate???
Replies: 94
Views: 17331

Re: What’s the magic savings rate???

I think that as a practical matter yes you should control your spending, especially on material things that you don't need. But also as a practical matter using a rule of thumb for payroll contributions to a 401k plan is simple to implement as well as essential to long-term planning. The standard re...
by Garco
Mon Jun 25, 2018 1:14 am
Forum: Investing - Theory, News & General
Topic: What’s the magic savings rate???
Replies: 94
Views: 17331

Re: What’s the magic savings rate???

But my ending salary was ~$200K. Not great. I hope you're not implying your $200k salary was "not great". These boards can really skew one's perception of the world. 8-) It was a "very good" salary at the end of a 44-year career that started at $11,500 ($13K with summer pay -- about $83K in 2014 do...
by Garco
Sat Jun 23, 2018 10:03 pm
Forum: Investing - Theory, News & General
Topic: What’s the magic savings rate???
Replies: 94
Views: 17331

Re: What’s the magic savings rate???

It's hard to predict what your earnings will be over your working life. I know someone whose earnings at age 22 (just graduated from college) were ~$40K, then after about 7 years grew to $80K, then about 5 years later grew to $1 million per year. What should his annual savings rate have been? Then I...
by Garco
Sun Jun 03, 2018 11:25 pm
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 2980
Views: 528501

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

1. In my main retirement acct. (403b): +3.00% ytd. thru June 1, 2018.
2. Asset allocation ~45% equities, 10% CRE, remainder in FI.

I'm in retirement mode, as reflected in conservative allocation. Living on SS + RMD's as well drawing some income from int. and div. in a taxable investment account.
by Garco
Tue May 01, 2018 9:07 am
Forum: Personal Investments
Topic: Portfolio Review/Advice
Replies: 11
Views: 1262

Re: Portfolio Review/Advice

Oi, my head hurts. Too many separate funds to wrap my mind around. Can you summarize by asset class, across the different accounts? That would give a better sense of what you hold.

I agree with the premise of your post: too complex.
by Garco
Sun Apr 15, 2018 3:26 pm
Forum: Investing - Theory, News & General
Topic: Trinity Study updated to 2018
Replies: 156
Views: 25941

Re: Trinity Study updated to 2018

I'm using a seat-of-the-pants method after 4 years in retirement. That is due to several factors: 1) Because inheritance funds were arriving, unevenly, over a roughly 3-year period, there wasn't a simple starting sum to use in calculating a "safe withdrawal rate" (SWR) when I retired; 2) We decided ...
by Garco
Sun Apr 15, 2018 2:51 pm
Forum: Investing - Theory, News & General
Topic: We crush stock indexes, Yale claims
Replies: 129
Views: 24290

Re: We crush stock indexes, Yale claims

There's a certain unmentionable variant on your little aphorism. One that I learned from a very wise man: my father. But I won't "print" it here.
by Garco
Mon Apr 02, 2018 2:39 pm
Forum: Personal Investments
Topic: 403(b) / 457(b) Selection and Vendor Advice
Replies: 21
Views: 2002

Re: 403(b) / 457(b) Selection and Vendor Advice

That list of providers makes me sick. This kind of thing has been going on too long. Far too many teachers have been cheated out of good retirement plan options. The OP should follow up on the efforts so far, and don't settle for any high cost (high fee) plan.
by Garco
Mon Apr 02, 2018 1:04 pm
Forum: Investing - Theory, News & General
Topic: What’s the magic savings rate???
Replies: 94
Views: 17331

Re: What’s the magic savings rate???

This discussion has interpreted "savings rate" as "retirement savings rate." I think a much broader definition is needed. You should save for: (1) retirement [general rule of thumb: minimum of 15% per year in 401k-type tax deferred funds] (2) a home [at minimum for down-payment but also to use cash ...
by Garco
Mon Apr 02, 2018 12:22 pm
Forum: Investing - Theory, News & General
Topic: Where Nobel Economists Put Their Money
Replies: 19
Views: 5311

Re: Where Nobel Economists Put Their Money

Whether you are an avowed Boglehead or not, John Bogle's recommendation to "Don't just do something; stand there!" holds for Nobel economists and mere ordinary PhD academics (of which I am one). As pointed out above, professors usually have great job stability, at least after they receive tenure. Th...
by Garco
Sun Mar 04, 2018 1:50 pm
Forum: Investing - Theory, News & General
Topic: Is Cash Trash? The Purpose of Cash
Replies: 246
Views: 32189

Re: Is Cash Trash? The Purpose of Cash

When I was still working, I always had a source of cash: my paycheck. I spent upwards of 80% of it each month, invested the rest. Now that I'm retired, my cash comes from Social Security and RMD's from my retirement fund. I spend upwards of 90% each month, "save" the rest for a rainy day or special ...
by Garco
Sun Mar 04, 2018 12:13 pm
Forum: Personal Investments
Topic: Lost My Way - Advice Needed
Replies: 44
Views: 5419

Re: Lost My Way - Advice Needed

My investing began in a pre-Bogleian era when all I knew was that I was required to contribute 10% from my salary (matched by some money from my employer) into the only account that I had available: TIAA-CREF. And 75% of that went into the TIAA stock fund, 25% into CREF annuity fund. I had a great t...
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: 11793

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: 138
Views: 10159

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 ...