Search found 112 matches

by RetiredinKaty
Thu Jul 06, 2017 9:09 am
Forum: Investing - Help with Personal Investments
Topic: How best to invest 10 years of expenses in Fixed Income
Replies: 27
Views: 3392

Re: How best to invest 10 years of expenses in Fixed Income

What I did eight years ago with a similar goal: I bought 5 CDs of 1,2,3,4 and 5 year maturities, each holding 2 years spending. Then each year I take from the matured cd the amount I need for the next year's spending, put it in a money market account, and roll over the rest into a new 5 year cd. Th...
by RetiredinKaty
Mon Jun 26, 2017 12:59 pm
Forum: Investing - Help with Personal Investments
Topic: TIPS or no TIPS again
Replies: 47
Views: 6266

Re: TIPS or no TIPS again

[quote="AntsOnTheMarch"]Thank you, one and all for contributing! @nedsaid, I especially appreciate your detailed explanation of underlying factors. I had gathered as much from my readings but not being fluent in these matters, it helps to have them rephrased and restated. :beer @dbr, thanks for resp...
by RetiredinKaty
Mon May 01, 2017 7:29 pm
Forum: Personal Finance (Not Investing)
Topic: When spousal benefits stop
Replies: 15
Views: 4358

Re: When spousal benefits stop

Almost there, Based on our recent experience I am doubtful that online will work. Once you are in the system as receiving a benefit it seems impossible to access the necessary web page to apply for a new, different benefit. This may be to prevent fraud, but the site and social security personnel don...
by RetiredinKaty
Thu Apr 20, 2017 12:51 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe says "Goodbye."
Replies: 336
Views: 50908

Re: Larry Swedroe says "Goodby."

Thank you Mr. Swedroe. Your willingness to engage regularly on this forum was a rare gift to us all. I can't rightly say how many of your books I have read because most of them are in e-book form, but they have all been very helpful. Now I guess I will subscribe to your blog, wherever it is and wher...
by RetiredinKaty
Sat Apr 08, 2017 9:31 pm
Forum: Investing - Theory, News & General
Topic: Value of having TIPS funds?
Replies: 35
Views: 4998

Re: Value of having TIPS funds?

I think this is key to why some people see no value in TIPS funds and others like me see a lot of value in them. The posts by slowmoney suggest an expectation of a short duration, clearly indicated by the suggestion that every year the fund loses to inflation is a “failure”. The posts by grok87 show...
by RetiredinKaty
Wed Apr 05, 2017 9:11 pm
Forum: Investing - Help with Personal Investments
Topic: WSJ TIPS chart- how to read?
Replies: 2
Views: 450

Re: WSJ TIPS chart- how to read?

viewtopic.php?t=138766

Search this site for #cruncher and "tips ladder" and you will get all there is to know about the wsj tips data.

Regards.
by RetiredinKaty
Wed Mar 29, 2017 3:32 pm
Forum: Investing - Help with Personal Investments
Topic: Third Party Annuity vs. Self-Purchasing Annuity
Replies: 4
Views: 610

Re: Third Party Annuity vs. Self-Purchasing Annuity

You are always going to deal through a third party – the broker, and you are always going to pay commission. Immediateannuities.com say they receive between 2% and 6%, depending on the annuity. Vanguard charges a flat 2% to facilitate annuity purchases through the Income Solutions platform. TD Ameri...
by RetiredinKaty
Sun Mar 19, 2017 8:35 pm
Forum: Investing - Help with Personal Investments
Topic: "Don't time the market" vs. "Buy low, sell high"
Replies: 69
Views: 7324

Re: "Don't time the market" vs. "Buy low, sell high"

My early interest in the Boglehead Forum was the reading list. Over the last 10 years I believe that I have read at least one book by nearly every author on that list. So when I related rebalancing with “buy low / sell high” earlier in this discussion I didn’t think I was committing an Original Thou...
by RetiredinKaty
Wed Mar 15, 2017 6:39 pm
Forum: Investing - Help with Personal Investments
Topic: "Don't time the market" vs. "Buy low, sell high"
Replies: 69
Views: 7324

Re: "Don't time the market" vs. "Buy low, sell high"

Disciplined rebalancing is contrarian, “buy low, sell high” in practice. Maintaining a fixed allocation is “don’t time the market”. No conflict in this for me.

I have long experienced cognitive dissonance over “Stay the course” and “Age – x in bonds”. I don’t automatically glide any more.
by RetiredinKaty
Sun Mar 12, 2017 2:54 pm
Forum: Investing - Help with Personal Investments
Topic: ST TIPS Volatility
Replies: 8
Views: 883

Re: ST TIPS Volatility

When looking at the graph showing performance on the Vanguard site, however, it shows a very erratic performance with lots of volatility. Much more volatility than other short term bond funds. I have no idea why For this reason I am considering moving some of my Total Bond Index to shorter duration...
by RetiredinKaty
Thu Feb 23, 2017 2:09 pm
Forum: Investing - Help with Personal Investments
Topic: Is 60/40 too conservative for 31 year old?
Replies: 69
Views: 9737

Re: Is 60/40 too conservative for 31 year old?

Just for fun I generated the table below for my work years (1975-2011), my salary progression (15K to 150K, assume linear), and a constant 18% investment rate (employee and company match). I used Portfolio Visualizer Asset Class Backtest for All Stock (Total US) and for 60/40 Total US Stock / Interm...
by RetiredinKaty
Fri Feb 10, 2017 11:31 pm
Forum: Investing - Theory, News & General
Topic: Does Micheal Kitces Rising Retirement Glidepath Still have legs
Replies: 47
Views: 5471

Re: Does Micheal Kitces Rising Retirement Glidepath Still have legs

I don't think this follows.. Maybe not, I won't argue. Truth is I never liked the downward glide path after retirement. It is based on people getting into the target date series early on in their accumulation, so that by mid-60s their funded ratio on average is so frigging high that it doesn't matt...
by RetiredinKaty
Wed Feb 08, 2017 12:56 pm
Forum: Investing - Theory, News & General
Topic: Does Micheal Kitces Rising Retirement Glidepath Still have legs
Replies: 47
Views: 5471

Re: Does Micheal Kitces Rising Retirement Glidepath Still have legs

We are living in an era of muted expected stock returns. I think this fact pretty much kills in-retirement glide paths, up or down. Historically that stocks have done really well but occasionally not so much. So, if you started retirement with just 20% in stocks, you can expect to be protected from ...
by RetiredinKaty
Sat Feb 04, 2017 12:21 pm
Forum: Investing - Help with Personal Investments
Topic: For Target date fund owners in retirement
Replies: 7
Views: 1290

Re: For Target date fund owners in retirement

Cody, Perhaps a real world example will help. Consider the Vanguard Balanced Index fund, which has been a 60/40 stock / bond fund since inception. The stocks in the fund resemble the total US stock market, and the bonds resemble the total US bond market. Rebalancing strategy is proprietary to Vangua...
by RetiredinKaty
Thu Feb 02, 2017 5:35 pm
Forum: Investing - Theory, News & General
Topic: No Inflation-Adjusted SPIAs at Vanguard
Replies: 120
Views: 9007

Re: No Inflation-Adjusted SPIAs at Vanguard

I agree with stlrick and some others above. You can do it yourself. Buy nominal life annuities and then invest in TIPS to cover your expected life, or buy an annuity with a fixed COLA or no COLA now and allow for the purchase of a catch all annuity later on as needed. I think Bogleheads tend to over...
by RetiredinKaty
Wed Jan 25, 2017 5:41 pm
Forum: Investing - Theory, News & General
Topic: Dow hits 20,000. What next? Share your strategy
Replies: 107
Views: 11150

Re: Dow hits 20,000. What next? Share your strategy

As a retiree, my major fund is VG Life Strategy Moderate Growth (60/40) and my secondary fund is TIPS. I have outsourced "what to do" because data overwhelmingly shows that when we ponder/hesitate/act prematurely, we lose.
by RetiredinKaty
Mon Jan 16, 2017 9:49 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard TIPS fund duration
Replies: 10
Views: 1083

Re: Vanguard TIPS fund duration

That seems wrong. Vanguard's annual report covering the period ending June 2016 shows a duration of 8.4 years for the fund. You sure the 5.1 is right? It is a note I made along with other bond funds at the time. Maybe it should have been 8.1 instead of 5.1. Sometime in the last few months Vanguard ...
by RetiredinKaty
Fri Jul 22, 2016 5:18 pm
Forum: Investing - Theory, News & General
Topic: Delay Social Security to age 70 and Spend more money at 62
Replies: 203
Views: 43110

Re: Delay Social Security to age 70 and Spend more money at 62

I have read this many, many (many times) and I have a question. Why wouldn't you just take $63,182 out of your $1,000,000 every year for 8 years and then at age 70 reduce the amount you take out of your portfolio by $34,092? What's the point of taking out $272,736 and sticking it in a savings accou...
by RetiredinKaty
Sat Apr 23, 2016 9:52 am
Forum: Investing - Theory, News & General
Topic: Determine risk tolerance
Replies: 19
Views: 1767

Re: Determine risk tolerance

Shaggy, Paul Merriman is a well regarded financial adviser who addressed your question in a recent blog: http://www.marketwatch.com/story/the-emotional-and-psychological-risks-of-investing-2016-03-30 In the long run, moderation will serve you better than either too much ambition or too much caution....
by RetiredinKaty
Tue Mar 29, 2016 11:40 pm
Forum: Investing - Theory, News & General
Topic: TIPS Anyone?
Replies: 92
Views: 10639

Re: TIPS Anyone?

This is a late post but I would like to point out something that may be easily overlooked. You should explore other time periods, but I'm going to "cherry"-pick 3 years here because it certainly shows why TIPS haven't been looking very good lately . Remember the ad tagline, "I've fallen, and I can't...
by RetiredinKaty
Sun Mar 27, 2016 12:08 am
Forum: Personal Finance (Not Investing)
Topic: Defined Benefit Pension - Joint Survivor Annuity
Replies: 41
Views: 3474

Re: Defined Benefit Pension - Joint Survivor Annuity

ParkersPaPa,

At my megacorp I don't believe the spousal consent issue was widely discussed in the retirement materials. It was just something that came up while I was in the process of retiring. You may find the following link informative:

http://www.wiserwomen.org/index.php?id=279&page
by RetiredinKaty
Wed Mar 23, 2016 11:14 am
Forum: Personal Finance (Not Investing)
Topic: Defined Benefit Pension - Joint Survivor Annuity
Replies: 41
Views: 3474

Re: Defined Benefit Pension - Joint Survivor Annuity

My understanding when I retired a few years ago was that the 50% option default was a legal requirement. The purpose is to protect the interests of the spouse in case the pension owner and spouse are at loggerheads over what to choose. In that case, the pension owner can resolve the matter by select...
by RetiredinKaty
Thu Mar 17, 2016 1:12 pm
Forum: Investing - Theory, News & General
Topic: Inflation Protection Securities funds and ETFs
Replies: 12
Views: 1788

Re: Inflation Protection Securities funds and ETFs

The Bloomberg article suggests that the bond market is moving closer to the FED's view that inflation is rising . It seems logical that TIPS prices would rise when inflation expectations are rising. http://www.bloomberg.com/news/articles/2016-03-17/pimco-to-goldman-seek-vindication-as-inflation-bets...
by RetiredinKaty
Sat Feb 27, 2016 1:11 am
Forum: Investing - Theory, News & General
Topic: The Vanishing DIY Annuity
Replies: 11
Views: 2799

Re: The Vanishing DIY Annuity

By two methods I get an answer that is very close to 20.1442 years, so I suspect that Nightfall's 19.1442 years may be "correct" if one defines the initial year as year zero rather than year 1? In any case, for the problem stated in the OP, there are 20 annual payments with a little left over. The f...
by RetiredinKaty
Tue Jan 19, 2016 9:49 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Overwhelmed!
Replies: 24
Views: 6682

Re: Vanguard Overwhelmed!

This may be better in another thread, but am I reading this right? I checked recently for tax forms and got this: If you've signed up for e-delivery, you'll receive an e-mail when your tax statements are available online. Tax forms for mutual fund accounts will be available in mid- to late January. ...
by RetiredinKaty
Sat Dec 19, 2015 5:56 pm
Forum: Personal Finance (Not Investing)
Topic: Math to include large fixed pension/annuity in retirement planning.
Replies: 19
Views: 2659

Re: Math to include large fixed pension/annuity in retirement planning.

Oops. I believe that I inverted the risk in the table above. That is, the riskiest spending should be the near term spending and the safest spending should be the longest term. So, I think the correct approach is to first assume that the spending in year 30 is constant, and then march back in time c...
by RetiredinKaty
Sat Dec 19, 2015 2:01 am
Forum: Personal Finance (Not Investing)
Topic: Math to include large fixed pension/annuity in retirement planning.
Replies: 19
Views: 2659

Re: Math to include large fixed pension/annuity in retirement planning.

For a long time before I retired I thought I was going to have a similar situation in that I intended to take a large pension. I also planned to defer social security to age 70. In the event I took the pension as a lump sum; I am still deferring social security. It was frustrating to not be able to ...
by RetiredinKaty
Wed Dec 09, 2015 8:59 pm
Forum: Investing - Theory, News & General
Topic: effect of possible rate increase on annuities
Replies: 6
Views: 985

Re: effect of possible rate increase on annuities

While no one knows for sure what the impact of increasing short rates will have on all rates, I would think that a spia is most affected by long term corporate rates. You could be waiting a long time to see changes in short term rates affect quotes on spias.
by RetiredinKaty
Sun Sep 27, 2015 4:56 pm
Forum: Investing - Help with Personal Investments
Topic: Skill level to replace Tips fund with individual tips?
Replies: 48
Views: 5402

Re: Skill level to replace Tips fund with individual tips?

Kevin M, Yes that is basically what I did. Bear in mind that for the $100,000 per year example you used, I think you might be unlucky enough to expect to get $106,000 based on the original purchase NAV and yield, but end up over time only getting about $94,000. In other words, the initial condition ...
by RetiredinKaty
Sun Sep 27, 2015 11:05 am
Forum: Investing - Help with Personal Investments
Topic: Skill level to replace Tips fund with individual tips?
Replies: 48
Views: 5402

Re: Skill level to replace Tips fund with individual tips?

Kevin M, I extended the NAV / 10 year yield analysis back to the beginning of 2008. Here are the results: 25 Year spending horizon: Payment variability (standard deviation): 3.78% 17.5 Year spending horizon: Payment variability (standard deviation): 1.88% 10 Year spending horizon: Payment variabilit...
by RetiredinKaty
Sat Sep 26, 2015 2:11 pm
Forum: Investing - Help with Personal Investments
Topic: Skill level to replace Tips fund with individual tips?
Replies: 48
Views: 5402

Re: Skill level to replace Tips fund with individual tips?

It would be nice to have a bit of closure on this topic. I hope this helps. I invest in the plain old Vanguard intermediate TIPS fund. I understand that with individual TIPS I could avoid the annual fund expense of 0.1 to 0.2%. I also understand that holding longer bonds, either individually or in a...
by RetiredinKaty
Mon Sep 14, 2015 4:52 pm
Forum: Investing - Help with Personal Investments
Topic: Bad date to rebalance?
Replies: 11
Views: 912

Re: Bad date to rebalance?

Well, I heard that some in the FED favored raising rates in September rather that December because of market liquidity concerns in the last month of the year. Because of this I was thinking of moving my withdrawal / rebalance time back to my birthday in March. In response to this thread I did a sear...
by RetiredinKaty
Fri Sep 04, 2015 2:47 pm
Forum: Investing - Theory, News & General
Topic: Question about Vanguard Inflation Protected Securities
Replies: 10
Views: 2508

Re: Question about Vanguard Inflation Protected Securities

I am replying to the OP as someone who bought and sold the TIPS intermediate fund several times before I finally conceded that I needed to "learn how it works". Now I am a long term investor in the fund. This is my take on how it works. The inflation protection feature in all TIPS is near perfect, i...
by RetiredinKaty
Tue Aug 04, 2015 11:50 pm
Forum: Investing - Theory, News & General
Topic: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios
Replies: 143
Views: 24331

Re: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios

I believe Dr. Pfau wrote a similar paper in December 2013. Then as now I don't think default of the SPIA was included in the probability analysis. If the SPIA is a better bond, which I can accept, in some ways it is a single corporate bond.
by RetiredinKaty
Sun Aug 02, 2015 1:07 pm
Forum: Investing - Help with Personal Investments
Topic: Moving from TIPs fund to TIPs ladder???
Replies: 49
Views: 5864

Re: Moving from TIPs fund to TIPs ladder???

mtp follower wrote: I do not understand the concern. Once you set it up for your duration, there is no maintenance. Every year you get a chunk of money. Don't you in fact every year get chunks of money, one of which is large? Can you see that that might be a bit much for some to manage in the contex...
by RetiredinKaty
Tue Jul 28, 2015 9:22 am
Forum: Investing - Help with Personal Investments
Topic: Moving from TIPs fund to TIPs ladder???
Replies: 49
Views: 5864

Re: Moving from TIPs fund to TIPs ladder???

A really good discussion. I am comfortable with the intermediate TIPS fund, but the ladder would be the safest way to go for those who could manage it. I think I would want professional assistance to put a ladder together, and I doubt my spouse would want to maintain it.
by RetiredinKaty
Thu Jun 11, 2015 5:32 pm
Forum: Investing - Theory, News & General
Topic: Assessing TIPS fund performance - Is this too simple?
Replies: 21
Views: 2182

Re: Assessing TIPS fund performance - Is this too simple?

Kevin, As I stated earlier on in this thread, I do accept the non-rolling TIPS ladder as the way to establish an LMP. I do not use an LMP; like many others I use a risky portfolio that I try to make a bit less risky by adding things like a TIPS fund. That is not Dr. Bernstein’s recommended approach,...
by RetiredinKaty
Wed Jun 10, 2015 3:45 pm
Forum: Investing - Theory, News & General
Topic: Assessing TIPS fund performance - Is this too simple?
Replies: 21
Views: 2182

Re: Assessing TIPS fund performance - Is this too simple?

OK. Really good advice from the best bond people on the forum. Especially - ogd wrote: Yes, just accept it. and ogd wrote: Some people love to plan fixed income to an unrealistic (or "unnecessary") degree when there are stocks in the portfolio, which may supply far more capital than the little bond ...
by RetiredinKaty
Wed Jun 10, 2015 2:23 pm
Forum: Investing - Theory, News & General
Topic: Assessing TIPS fund performance - Is this too simple?
Replies: 21
Views: 2182

Re: Assessing TIPS fund performance - Is this too simple?

#cruncher, Thanks for your response, and by the way, thanks for all your efforts with respect to bonds and especially TIPS and ladders on the forum. They have helped me a great deal. My post just prior to yours clarified my intent, I hope. How does a retiree like me who does not want to actually bui...
by RetiredinKaty
Wed Jun 10, 2015 8:48 am
Forum: Investing - Theory, News & General
Topic: Assessing TIPS fund performance - Is this too simple?
Replies: 21
Views: 2182

Re: Assessing TIPS fund performance - Is this too simple?

Doc, Yes I have seen the thread but did not realize how frequently it was updated. On reflection, I think I have been trying to re-solve a problem that has already been worked. Specifically, how can an intermediate TIPS fund best be used in retirement to get some of the higher yields of longer matur...
by RetiredinKaty
Tue Jun 09, 2015 9:25 pm
Forum: Investing - Theory, News & General
Topic: Assessing TIPS fund performance - Is this too simple?
Replies: 21
Views: 2182

Re: Assessing TIPS fund performance - Is this too simple?

Kevin M,

Thanks for the suggestions. I am concerned that they won't fit that well because of the lag with the market, but I will look into them.
by RetiredinKaty
Tue Jun 09, 2015 9:20 pm
Forum: Investing - Theory, News & General
Topic: Assessing TIPS fund performance - Is this too simple?
Replies: 21
Views: 2182

Re: Assessing TIPS fund performance - Is this too simple?

RNJ, Individual TIPS in a non-rolling ladder would be a safe and straightforward way to produce inflation protected retirement income. Such a ladder for an early retiree would have a considerable duration. Another approach would be to use Vanguard's short TIPS fund as a sort of cash like stable valu...
by RetiredinKaty
Tue Jun 09, 2015 8:42 pm
Forum: Investing - Theory, News & General
Topic: Assessing TIPS fund performance - Is this too simple?
Replies: 21
Views: 2182

Re: Assessing TIPS fund performance - Is this too simple?

Taylor,

Point taken. But at least once a year, I need to evaluate how the investment is doing in order to set a withdrawal. For a longer TIPS fund it is not just about price but also the horizon involved. Just trying to find a good yield to use for that analysis.

Thanks.
by RetiredinKaty
Tue Jun 09, 2015 8:07 pm
Forum: Investing - Theory, News & General
Topic: Assessing TIPS fund performance - Is this too simple?
Replies: 21
Views: 2182

Assessing TIPS fund performance - Is this too simple?

I invest in Vanguard’s intermediate TIPS fund. The fund’s price moves up and down every day, and the real yield moves in the opposite direction. In order to tell if I am having a good day or a bad one with my investment, I believe I need to know 3 things: the change in price, the change in yield, an...
by RetiredinKaty
Mon Jun 08, 2015 11:04 pm
Forum: Investing - Theory, News & General
Topic: TIPS Funds Yielding 6+%
Replies: 30
Views: 4805

Re: TIPS Funds Yielding 6+%

http://www.wsj.com/articles/SB100014240 ... 3576172904

This article by Jason Zweig explains that the SEC never issued any special rules for TIPS funds for handling the inflation adjustment in a common manner. Vanguard backs out the adjustment.
by RetiredinKaty
Fri Jun 05, 2015 11:34 am
Forum: Investing - Theory, News & General
Topic: Year long hiatus from Bogleheads: How I found the 3-fund portfolio was right for me
Replies: 40
Views: 8856

Re: Year long hiatus from Bogleheads: How I found the 3-fund portfolio was right for me

I think Rick Ferri has another point relevant to this thread, about the firming of one's investment philosophy. Here is the link for any who haven't read it: http://www.rickferri.com/blog/strategy/philosophy-differs-from-strategy/ While the theme seems to be simplifying the plan (and I certainly hav...
by RetiredinKaty
Tue Jun 02, 2015 9:53 am
Forum: Investing - Theory, News & General
Topic: Stemikger "Volatility is far from synonymous with risk."
Replies: 152
Views: 15035

Re: Stemikger "Volatility is far from synonymous with risk."

This is probably way over my head, but maybe there is another way to look at this (saying what Grayfox just said). Larry Swedroe has written numerous times that returns are log normally distributed, not normally distributed. The Morningstar white paper, to my skimming eye, seems to be saying the sam...