Search found 35 matches

by TwoCyclists
Mon Jun 03, 2013 7:43 pm
Forum: Investing - Theory, News & General
Topic: More Unconventional Failure
Replies: 17
Views: 2597

Re: More Unconventional Failure

Rick, your article is misleading, despite your two sentences quoted below in response to Frank2012: Mr. Swenson is actually one of the most famous proponents of indexing for the average investor, and does not at all advocate using a Yale-type portfolio for such investing. Which is why I wrote in the...
by TwoCyclists
Mon Jun 03, 2013 12:47 pm
Forum: Investing - Theory, News & General
Topic: More Unconventional Failure
Replies: 17
Views: 2597

Unconvential Success for individual investors

In his book for individual investors, Unconventional Success , Swenson extensively discusses and recommends a portfolio consisting entirely of low-cost index funds or ETFs, allocated to 6 core asset classes: US equity (30%), US Treasury bonds (15%), US inflation-linked bonds (15%), foreign developed...
by TwoCyclists
Fri Feb 01, 2013 7:37 pm
Forum: Personal Finance (Not Investing)
Topic: What's a better term for 'retired'?
Replies: 97
Views: 10360

Re: What's a better term for 'retired'?

I use the term "financially independent".
by TwoCyclists
Thu Nov 08, 2012 2:23 pm
Forum: Investing - Theory, News & General
Topic: Why is holding LT Treasury fund shares dangerous?
Replies: 15
Views: 2080

Why is holding LT Treasury fund shares dangerous?

Please help me to understand how Treasury funds and ETFs work. Everyone says that longer-term investments in these are really dangerous. I am trying to see exactly why. The underlying Treasury bills, notes, or bonds in the fund have fixed coupons, so if the price of the fund shares goes down, the to...
by TwoCyclists
Wed Oct 10, 2012 11:36 am
Forum: Investing - Theory, News & General
Topic: Fixed SPIA with do-it-your-self inflation adjustments?
Replies: 29
Views: 2305

Re: Fixed SPIA with do-it-your-self inflation adjustments?

Again, thanks for the very helpful discussion. I think this discussion is also relevant to Henry Hebeler's proposal that those who have fixed db pensions can protect against inflation by saving a portion of their after-tax payout and reinvesting it (see "Withdrawal Strategies in Difficult Times...
by TwoCyclists
Tue Oct 09, 2012 9:40 pm
Forum: Investing - Theory, News & General
Topic: Fixed SPIA with do-it-your-self inflation adjustments?
Replies: 29
Views: 2305

Re: Fixed SPIA with do-it-your-self inflation adjustments?

Yes, my idea was inspired by Wade Pfau's "efficient-frontier-for-retirement-income" article, where he finds that under current conditions of projected low inflation. low interest, and low growth, fixed SPIAs combined with equities do better than stocks and bonds, and better than inflation-...
by TwoCyclists
Tue Oct 09, 2012 6:54 pm
Forum: Investing - Theory, News & General
Topic: Fixed SPIA with do-it-your-self inflation adjustments?
Replies: 29
Views: 2305

Fixed SPIA with do-it-your-self inflation adjustments?

Suppose: If you annuitize half your assets, using a fixed spia at today's rates, you can cover 100% of your desired retirement income; the remaining half of the assets are invested largely in equities (in the form of low-cost indexed funds). Can you compensate for the expected effects of inflation d...
by TwoCyclists
Mon Feb 06, 2012 12:07 pm
Forum: Personal Finance (Not Investing)
Topic: SPIAs -- do you exceed the max?
Replies: 1
Views: 301

SPIAs -- do you exceed the max?

How many of you have purchased SPIAs in amount that exceed the maximum insurance consortium coverage for failure in your state? In California the max (200k) is less than the amount of annuity that would be most useful for us (and only 80% is covered any way). Would it be better to forgo the addition...
by TwoCyclists
Sat May 28, 2011 12:57 am
Forum: Investing - Theory, News & General
Topic: Is Wealth Genetic?
Replies: 31
Views: 3457

Are you a genetic boglehead or a cultural boglehead? Do your own personal habits of saving come from genetics or from how you were raised? With all respect, I don't think being a boglehead is really about frugality and saving. I think it is about an approach to rational and prudent investing: (i) m...
by TwoCyclists
Sat Sep 04, 2010 11:15 am
Forum: Investing - Theory, News & General
Topic: Adrian's Rule Revisited
Replies: 19
Views: 3619

forecasting loss in retirement

"The question remains, how should the common rules for acceptable loss be modified to properly forecast loss for those in retirement?" We can't forecast loss, but we have seen a 90% loss from equities in the Great Depression and losses close to 50% have occurred three times in the past 10 ...
by TwoCyclists
Fri Aug 13, 2010 10:02 am
Forum: Investing - Theory, News & General
Topic: Challenges Facing the Middle Class
Replies: 33
Views: 4668

All these comments about how the middle class is better off now: sure, in material goods families may be better, but at the cost of a huge shift to two-income households. % of working age women working doubled from 1970 to 2003, from sub 40% to almost 80%. This has had a profound change on many thi...
by TwoCyclists
Fri Aug 13, 2010 9:51 am
Forum: Investing - Theory, News & General
Topic: Challenges Facing the Middle Class
Replies: 33
Views: 4668

I watched the video of Elizabeth Warren's lecture, which I thought was excellent. She provided data that addresses many of the speculations and opinionated assertions that have been given so far in comments to the OP -- for example, the difference in housing (measured by number of rooms) for a media...
by TwoCyclists
Sat Jul 24, 2010 12:37 am
Forum: Investing - Theory, News & General
Topic: New Paper on Not So Safe Withdrawals
Replies: 92
Views: 11128

Magellan, thanks for the spreadsheet! Could I ask exactly how you
build the tips ladder itself? That is, what do you purchase in
each of the 30 years to get this outcome?

TC
by TwoCyclists
Thu Jun 03, 2010 10:42 pm
Forum: Personal Finance (Not Investing)
Topic: pay CA income tax on VG Treasury funds in taxable?
Replies: 2
Views: 569

Thank you, sscritic!
by TwoCyclists
Thu Jun 03, 2010 10:12 pm
Forum: Personal Finance (Not Investing)
Topic: pay CA income tax on VG Treasury funds in taxable?
Replies: 2
Views: 569

pay CA income tax on VG Treasury funds in taxable?

I can't find out whether interest from the VG US Treasury funds (such as VFIRX, VUSTX) is taxable by the State of California income tax.
Anyone have the answer?
by TwoCyclists
Sat Apr 10, 2010 10:12 am
Forum: Investing - Theory, News & General
Topic: TIPS: why did VIPSX and not VIPIX go up today?
Replies: 3
Views: 1701

Thank you -- that's very helpful!
by TwoCyclists
Fri Apr 09, 2010 5:44 pm
Forum: Investing - Theory, News & General
Topic: TIPS: why did VIPSX and not VIPIX go up today?
Replies: 3
Views: 1701

TIPS: why did VIPSX and not VIPIX go up today?

Can anyone explain why VIPSX and VAIPX are up 8 basis pts today, while
VIPIX is up 0? VIPIX institutional shares are only $10.06. I thought these
funds have the same holdings.... ?
by TwoCyclists
Fri Sep 25, 2009 6:11 pm
Forum: Investing - Theory, News & General
Topic: Help on Scary personal finance subjects
Replies: 72
Views: 11545

I'm a little surprised at these responses to the call for scary topics in personal finance. Everyone is joking about the usual practices that Bogleheads disdain. But not long ago, we were genuinely afraid -- we saw share prices of the top financial institutions in the US and the world drop to unbeli...
by TwoCyclists
Sat Sep 05, 2009 10:10 am
Forum: Investing - Theory, News & General
Topic: dumb question about bond/tips funds
Replies: 3
Views: 1381

Thank you for the link -- it's exactly what I wanted to know.
I should have searched! Apologies.
by TwoCyclists
Fri Sep 04, 2009 10:41 am
Forum: Investing - Theory, News & General
Topic: dumb question about bond/tips funds
Replies: 3
Views: 1381

dumb question about bond/tips funds

I'm embarrassed to ask this, but in teaching I believe that no question is too dumb. I'm trying to understand bond fund investments to explain to my sister. If I spend $100,000 on shares of a bond fund such as VG Long-Term Treasuries (VUSUX), and if the yield when I buy is 4%, do I continue to recei...
by TwoCyclists
Thu Aug 06, 2009 1:37 am
Forum: Investing - Help with Personal Investments
Topic: inheritance cash coming,have run out of room in tax-deferred
Replies: 11
Views: 2173

It occurs to me (sorry this is dumb!) that when you are retired and drawing income from your portfolio, it doesn't so much matter to have everything located for tax efficiency. In other words, if I invest the inherited cash in TIPS or in some other income-producing investment in taxable, what does i...
by TwoCyclists
Wed Aug 05, 2009 7:39 pm
Forum: Investing - Help with Personal Investments
Topic: inheritance cash coming,have run out of room in tax-deferred
Replies: 11
Views: 2173

Thank you all for all the advice -- quite a range: i) getting rid of REITs in order to build the TIPS ladder in tax-deferred, using the inheritance money to buy VG SCV in taxable -- This makes sense to me, especially since REITs are generally small value, I believe. It is probably really the smart t...
by TwoCyclists
Wed Aug 05, 2009 1:42 pm
Forum: Investing - Help with Personal Investments
Topic: inheritance cash coming,have run out of room in tax-deferred
Replies: 11
Views: 2173

inheritance cash coming,have run out of room in tax-deferred

I am concerned about how to invest a coming inheritance that will probably consist of a lot of CDs and some individual stocks. Our portfolio is split nearly 50/50 between tax-deferred and taxable accounts. For tax efficiency, we have all of our bonds (consisting exclusively of VG US Treasury and TIP...
by TwoCyclists
Sun Jul 19, 2009 6:21 am
Forum: Investing - Theory, News & General
Topic: TIPS + LT Treasury Bonds + MMF
Replies: 25
Views: 3936

Swensen recommends long term bonds...

Swensen recommends long term bonds or bonds at the market median duration... in his book Unconventional Success: A Fundamental Approach to Personal Investment he recommends holding them in the duration you need, IIRC. Given our expected long lifespans, that would mean we could hold long-term bonds u...
by TwoCyclists
Sun May 10, 2009 10:24 am
Forum: Investing - Theory, News & General
Topic: Fun with anchoring. Progress to get back to even.
Replies: 21
Views: 3866

Thanks for the interesting question! On Oct 31, 2007 our portfolio was 60/40 in equities/bonds+cash. As of Friday, May 8, it is 42/60. I did the IRR thing with a spreadsheet, and found that on Friday, May 8 we are down -13.5% from our Oct 31, 2007 peak. At our low point on March 6, 2008 we were down...
by TwoCyclists
Sun May 03, 2009 10:11 pm
Forum: Investing - Theory, News & General
Topic: Tight-Fisted Investing/Rick Ferri in WSJ
Replies: 82
Views: 18905

I noticed the same thing about REITs being tamped down in Swensen's latest interviews, compared with his book Unconventional Success... . I would be very interested in the reply. At first I went along and tried revising my AA (on paper), and then I thought I should stick to my principles. Thanks for...
by TwoCyclists
Sun Dec 14, 2008 12:57 am
Forum: Investing - Theory, News & General
Topic: What have you learned about investing in the last year?
Replies: 64
Views: 10691

learned some basics

Have learned--- Swensen's analysis of asset classes in Unconventional Success is right on the mark: US Treasuries function as portfolio insurance when there is a flight to quality. Non-callable, backed by full faith & credit of US. My only bond investments are TIPS and Treasuries funds. From wat...
by TwoCyclists
Wed May 14, 2008 11:56 pm
Forum: Investing - Help with Personal Investments
Topic: what to do with retirement incentive lump sum?
Replies: 7
Views: 2345

Yes, that sounds like a good solution -- to put more MM into taxable (by placing the incentive lump sum into the tax-exempt MM) and use the MM in tax-deferred to buy more US Treas/TIPs. At the same time I could liquidate the small amount of REITS in the taxable accounts, which would optimize taxes a...
by TwoCyclists
Wed May 14, 2008 11:19 pm
Forum: Investing - Help with Personal Investments
Topic: what to do with retirement incentive lump sum?
Replies: 7
Views: 2345

Dear EmergDoc, I only saw the first paragraph of your message before responding -- sorry, I'm not used to posting on this forum. Here are the allocations of the overall combined big portfolio: US 19.5% For Dev 15.5% Emrg Mkt 4.8% REITs 15.3% TIPS 19.8% US Treas 11.5% MM 13.5% Swensen suggests as you...
by TwoCyclists
Wed May 14, 2008 11:05 pm
Forum: Investing - Help with Personal Investments
Topic: what to do with retirement incentive lump sum?
Replies: 7
Views: 2345

Thank you for the advice! The only equities I have in tax-deferred are
REITs, so that move would almost halve my REIT allocation -- from 20% to
12%. I wonder if there is a way to proceed without disturbing the
basic AA of the long-term portfolio?
by TwoCyclists
Wed May 14, 2008 9:52 pm
Forum: Investing - Help with Personal Investments
Topic: what to do with retirement incentive lump sum?
Replies: 7
Views: 2345

what to do with retirement incentive lump sum?

Dear wise Bogleheads, I am about to retire this summer, and will receive a lump sum incentive payment from employer worth approx 6-7% of entire portfolio after taxes. I will continue working part-time for several years, which will reduce income needed from portfolio. My income bracket after retireme...
by TwoCyclists
Fri Oct 12, 2007 9:33 pm
Forum: Personal Finance (Not Investing)
Topic: Which Linux distro are you using?
Replies: 57
Views: 18764

Ubuntu - just upgraded to feisty.
by TwoCyclists
Wed Feb 21, 2007 1:48 am
Forum: Investing - Help with Personal Investments
Topic: how to withdraw from split risky/riskless portfolio?
Replies: 5
Views: 4446

25% cash seems like a very high allocation to just a MM fund. Things look pretty good right now with a flat yield curve, but should rates drop overall or ST rates drop and LT stay where they are you will be losing. I would consider using a ST bond fund for some of this money and also look into hold...
by TwoCyclists
Wed Feb 21, 2007 1:43 am
Forum: Investing - Help with Personal Investments
Topic: how to withdraw from split risky/riskless portfolio?
Replies: 5
Views: 4446

I see a problem here. Most of the cash ... in tax-deferred accounts ... My basic, rather sketchy idea is that each year I could take the interest from the MM fund In other words, you're pulling money out of tax deferred accounts before taxable accounts, which is opposite to what's usually recommend...
by TwoCyclists
Tue Feb 20, 2007 8:45 pm
Forum: Investing - Help with Personal Investments
Topic: how to withdraw from split risky/riskless portfolio?
Replies: 5
Views: 4446

how to withdraw from split risky/riskless portfolio?

After reading _Unconventional Success_ by David Swensen, I divided my portfolio into two -- the risky portfolio, which has this AA, all in Vanguard index funds or in ETFs (except for about 6-7% in a US single stock gift from my father, which has a very large capital gain): 25% US equities 20% Foreig...