Search found 4533 matches

by dcabler
Thu Mar 28, 2024 7:19 am
Forum: Personal Investments
Topic: Best HSA?
Replies: 66
Views: 8594

Re: Best HSA?

Hello, I currently have an HSA with HealthEquity from a former employer. Unfortunately this HSA, requires I keep $2,000 minimum before investing. Just curious if there is a better option out there? I hold my personal accounts with Vanguard. It seems like a lot of people here like Fidelity? My HSA was with HealthEquity at my former employer as well. Even when I was still employed there, I was doing a trustee to trustee transfer to Fidelity about every 3 paychecks. No more minimum in cash. No more having to choose from among investments I didn't like. And no more added on fees for investing. You can't move anything invested to Fidelity in-kind. For the first transfer, I sold everything and moved almost all of it over to Fidelity, leaving jus...
by dcabler
Thu Mar 28, 2024 6:12 am
Forum: Investing - Theory, News & General
Topic: Underspending Paradox
Replies: 22
Views: 2336

Re: Underspending Paradox

I came across an Apple News article that discussed a paper titled, “Understanding underspending in retirement: The Decumulation Paradox reexamined.” I searched for the paper and found it here, https://www.nylannuities.com/connectedassets/final-assets/marketing-materials/white-paper/TPD_Client_Whitepaper_Decumulation_paradox.pdf I also found an article that discussed the paper here: https://insurancenewsnet.com/innarticle/the-decumulation-paradox-why-retirees-underspend I see myself as a person this paper is talking about. I would like opinions on moving forward. My wife (60) and I (turning 62) are both retired with FERs government pensions. We live in a state with no state income tax. Our home is paid off, our autos are paid off, we have n...
by dcabler
Thu Mar 28, 2024 5:10 am
Forum: Investing - Theory, News & General
Topic: Never selling shares
Replies: 57
Views: 4317

Re: Never selling shares

Most people use the 4% rule and sell shares in retirement. But if one can build a stock portfolio that throws off enough money without hurting growth that much and you never have to sell shares, wouldn’t that be ideal? Buffett says his holding period is “forever”. Couldn’t my father say the same? No. Receiving dividends is from a accounting and rational economic viewpoint the equivalent of selling. You can search all of the dividend irrelevant threads out there. Yes, it is a complex, nuanced, and contentious subject. So lets put in specific format. Dividend yields are about 3% and variable. So you have a choice of either 1) spending a 1/3 less, 2) saving a 1/3 more or 3) working a 1/3 longer. So there are negative impacts. And ignore Buffe...
by dcabler
Thu Mar 28, 2024 5:06 am
Forum: Personal Finance (Not Investing)
Topic: Got fired and I have question regarding resume.
Replies: 38
Views: 3499

Re: Got fired and I have question regarding resume.

I had spent the last 5 years in LTC/healthcare accounting then I took this current position doing AP daily accounting activities for a small manufacturer. The position was similar as to what I was doing previously... Just list your time in the position so you don't have any questionable gaps in your work history. If asked about why it was so short, tell them that after five months you mutually agreed that you weren't a good fit for their job. Explain that you had different expectations of the job from the interview, that you thought your accounting experience in long-term health care would easily transfer to manufacturing accounts payable, and after five months you realized that wasn't the case. Leaving the job was best both for you and fo...
by dcabler
Tue Mar 26, 2024 7:22 pm
Forum: Personal Investments
Topic: buying mutual funds seems easier than buying ETFs
Replies: 64
Views: 4889

Re: buying mutual funds seems easier than buying ETFs

I appreciate all the insights (despite my having posted this accidentally in probably the wrong sub-forum). I'm not market-timing. I just want to say, "invest $2000 in XYZ etf, purchasing as many shares as possible, at the then-current price. Or the next closing price. I don't really care. I'm using Schwab, and I don't see a way to do that. If I choose market order, the order will go in at the asking price, which is often quite a bit higher than the last closing price, and could be quite a bit higher than the *next* closing price. This is where the "bid-ask spread" comes in? The point about mutual fund purchasing process is a good one, that I had not considered before. So placing an order for a mutual fund is essentially a m...
by dcabler
Tue Mar 26, 2024 6:42 pm
Forum: Investing - Theory, News & General
Topic: Never selling shares
Replies: 57
Views: 4317

Re: Never selling shares

adave wrote: Tue Mar 26, 2024 6:39 pm He is not a Boglehead but seems to have engineered a good retirement. Even today, he enjoys generating income selling covered calls. He is more of an individual stock investor. In any case, the Boglehead approach is certainly one approach, but there are other things to think about as well. For example, Bogleheads don't seem to discuss step-up basis much which is a huge deal imo.
You must have missed the step-up cost basis discussions, then. They happen all the time on this forum...

There's even a bogleheads wiki on the subject: https://www.bogleheads.org/wiki/Step-up_in_basis
by dcabler
Tue Mar 26, 2024 6:12 pm
Forum: Personal Investments
Topic: Guaranteed Investments
Replies: 4
Views: 541

Re: Guaranteed Investments

If your work place offers an ESPP plan, depending on the rules of the plan they can often be like a 10-15% guaranteed return if your just capturing the discount and able to sell immediately I once worked with someone who said he needed the cash flow and couldn't afford to participate in ESPP, but it seems like even borrowing from a HELOC or something to bridge the first 6-12 month gap would make it worth while to get it rolling. Of course I didn't know his full situation, but I was really surprised to learn he didn't participate in what was a 15% return for me for 8 years in a row when I worked there, selling always when it was received Excellent point - you generally have only bridge that first period and you're good to go assuming the co...
by dcabler
Tue Mar 26, 2024 6:01 pm
Forum: Investing - Theory, News & General
Topic: Never selling shares
Replies: 57
Views: 4317

Re: Never selling shares

I agree that dividends are not free money. They are more like a forced sale. But in that case, since it is forced, why not used that stream of money to finance retirement and not sell any shares? Nothing wrong with this at all. If one lives off the "total return" from a portfolio, that would mean using both dividends and capital gains (selling shares) for living expenses. If someone gets all they need from dividends, there is no need to sell shares. Again, it simply means having more money than needed. It is the same as being able to live on a low withdrawal rate. Well. it could mean something else and this is something Vanguard has warned us about. A person could set up a portfolio so slanted toward maximum dividend production t...
by dcabler
Tue Mar 26, 2024 5:48 pm
Forum: Investing - Theory, News & General
Topic: Never selling shares
Replies: 57
Views: 4317

Re: Never selling shares

I agree that dividends are not free money. They are more like a forced sale. But in that case, since it is forced, why not used that stream of money to finance retirement and not sell any shares? I like his logic, to be honest. Step up basis is also a huge deal when you are talking about substantial share counts and leaving a legacy. He has already committed to paying for his grandkids education via funding generous 529s for them. Him and my Mom do have some "immigrant" mindset features and they immigrated here in 1965 with very little. So they live comfortably and nearby but not really extravagant. The forced sale analogy is appropriate. But it also means that the value of those shares is reduced by the amount of the forced sale...
by dcabler
Tue Mar 26, 2024 5:44 pm
Forum: Investing - Theory, News & General
Topic: Never selling shares
Replies: 57
Views: 4317

Re: Never selling shares

I understand dividend irrelevance as well why people like to avoid dividend ETFs in taxable etc (even though it is QDI). However, that begs the question, is max consumption in retirement the goal? My parents seem quite content with their level of lifestyle. Interestingly, he told me he overestimated their expenses in retirement, and that expenses drop a lot once kids are off the payroll and you get older. My goal is max happiness. Often that requires little money but I’m prepared to do what I need to with money (short of moving to Finland). Agree! And nothing wrong with having more than enough - meaning more than what you need to actually live on and do the things you want to do. If somebody can do that with only dividends & SS benefit...
by dcabler
Tue Mar 26, 2024 5:29 pm
Forum: Investing - Theory, News & General
Topic: Never selling shares
Replies: 57
Views: 4317

Re: Never selling shares

I understand dividend irrelevance as well why people like to avoid dividend ETFs in taxable etc (even though it is QDI). However, that begs the question, is max consumption in retirement the goal? My parents seem quite content with their level of lifestyle. Interestingly, he told me he overestimated their expenses in retirement, and that expenses drop a lot once kids are off the payroll and you get older. Except in a few cases, it's usually the norm that once kids are off the books, total costs drop. Most people know that and plan for that from the beginning. Nobody is average, but there have been some studies that show that average expenses during retirement are more shaped like a "U" or a "Smile". Higher in the beginn...
by dcabler
Tue Mar 26, 2024 5:14 pm
Forum: Investing - Theory, News & General
Topic: Never selling shares
Replies: 57
Views: 4317

Re: Never selling shares

My father is 83 yo retired engineer who has been into the market for as long as I can remember. Since I was a child I can recall him watching the market on TV and calling brokerages to place orders etc. I vividly remember him getting carried away with a couple stocks during the tech bubble (Lucent technology, anyone?) when I was just out of college. He told me yesterday that he has never sold a share of stock since retirement and funds his and my Moms lifestyle with SS income and dividends from a taxable account. He has small RMDs which is just reinvests. House paid off long ago. Decent but not extravagant lifestyle for their age. As he has never sold any shares, my and my sister will likely inherit them and get step up basis. Most people ...
by dcabler
Tue Mar 26, 2024 4:52 pm
Forum: Personal Finance (Not Investing)
Topic: Our State Farm agent retiring
Replies: 32
Views: 2202

Re: Our State Farm agent retiring

AlwaysLearningMore wrote: Tue Mar 26, 2024 3:34 pm Been through similar. New age who bought the book of business from retired agent ended up being an absentee agent, rarely in the office. Poor service.

So found new agent. They requested an email to them stating that all SF policies be transferred to the new agent. Took less than a few weeks to complete. Straightforward.
Nobody asked me to do anything when I changed agents. I simply logged into my State Farm account and changed agents. Correct that it took a couple of weeks for it to happen, but it happened without any further intervention on my part. The agent I had been assigned after my long-term agent closed shop, left me a few phone messages, which I ignored. That was it.

Cheers.
by dcabler
Tue Mar 26, 2024 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: Our State Farm agent retiring
Replies: 32
Views: 2202

Re: Our State Farm agent retiring

3) I *think* the mechanics of switching SF agents, within the SF family, are simple - let the old and/or new one know who you want to switch to and that's basically it, right? Yes. They all have the same pricing, since that's all controlled centrally. Talk to the new agent and tell them you want to transfer your policies to their office. You don't need permission from the old agent. SF offers what are essentially loyalty discounts, as opposed to other companies that offer discounts to new customers. Not necessarily that easy. I st4ongly suspect SF has some level of no poaching. It's as simple as logging into your State Farm account and changing your agent. I did it after mine retired and I got assigned to somebody that was simply too far a...
by dcabler
Tue Mar 26, 2024 12:11 pm
Forum: Personal Finance (Not Investing)
Topic: Our State Farm agent retiring
Replies: 32
Views: 2202

Re: Our State Farm agent retiring

Been with SF for decades (since I was a teenager). Had one SF agent for much of that time. He retired, account was transferred to a different SF agent. Didn't like that one (location was not convenient, he asked DW to come in for a policy review or somesuch that basically turned into a life insurance/annuity sales pitch). Switched ~4-5 years ago to a new SF agent close to me, been satisfied - good service, nice to have a convenient office to drop into, especially with a lot of recent activity (kids maturing into drivers' licenses then moving on/out). Got notice current SF agent retiring (office closing, I think), and we are being transferred to another (far-ish away), pending determining who SF puts us with long term. Don't like. 1) Even i...
by dcabler
Tue Mar 26, 2024 11:41 am
Forum: Investing - Theory, News & General
Topic: Viewing your portfolio vs viewing them as separate components
Replies: 14
Views: 1143

Re: Viewing your portfolio vs viewing them as separate components

It depends - if you're a returns-focused investor, then it's entirely appropriate to view your entire portfolio as a whole. Very common for folks to do this during the accumulation period. On the other hand, some of us in retirement, either don't at all or do so selectively. For example, one could have a "risk portfolio" which consists of any AA that that you like and which is occasionally rebalanced. At the same time one may have a separate portfolio that has as its sole purpose to generate a known income stream, like a TIPS ladder, which is never rebalanced with the risk portfolio. Disclosure: This is what I do where my risk portfolio is a mix of US and international stocks with no bond component. And I have an income focused p...
by dcabler
Tue Mar 26, 2024 8:08 am
Forum: Investing - Theory, News & General
Topic: Original proponent of the 30/70 allocation?
Replies: 84
Views: 13404

Re: Original proponent of the 30/70 allocation?

Morningstar has a family of Lifetime Allocation Indexes, whose construction rules stemmed from some work by Ibbotson and Kaplan in the early 2000's. For example, their "moderate" index bottoms out at a little over 35% stocks with the rest being fixed income of various types, whereas their conservative index ends up at around 23%, so in the 30/70 ballpark. https://assets.contentstack.io/v3/assets/bltabf2a7413d5a8f05/blt412138a41867a7ec/62b0778ea064e356abaf4c5a/20220617_Morningstar_Lifetime_Allocation_Jun_2022_Reconstitution_Summary.pdf Construction rules can be found here which explains that, among other things, they use the median remaining human capital for people aged 18 to 95 as part of their construction methodology https://s2...
by dcabler
Tue Mar 26, 2024 7:17 am
Forum: Personal Consumer Issues
Topic: What siding (or paint) to get ?
Replies: 11
Views: 637

Re: What siding (or paint) to get ?

As best I can tell (average of various estimates) we're looking at something around: $33k to paint house, repair/replace all trim, and install hardie board on one side of house (that has very old siding, vs. rest of house that has nicer siding that we don't mind repainting) $30k for vinyl siding, which would just cover/wrap all trim $55k for hardie board on entire house, including replacing all trim note: this does not include gutters and a couple of other assorted items, but these are not dependent on the siding option, so I'm only discussing the actual siding option itself in this post. While we can afford hardie board, I'd of course rather spend less than more (especially since we are also getting a new roof and doing a few other things...
by dcabler
Tue Mar 26, 2024 6:51 am
Forum: Investing - Theory, News & General
Topic: More Evidence Against Factor Investing
Replies: 650
Views: 46421

Re: More Evidence Against Factor Investing

Larry Swedroe's portfolio increases bonds but uses 100% SCV for Equities. It's not clear what the composition of the "Larry Portfolio" really was, whether he personally really held it, how long he held it, or what he holds now. In 2011, Ron Lieber of The New York Times wrote an article, Taking a Chance on the Larry Portfolio , which implied that it was simply 32% DFA US Small-Cap Value Portfolio and 68% one-year Treasury bills. But as far as I know Larry Swedroe never said this, and didn't spell it out with tickers and percentages in Reducing the Risk of Black Swans . The NYT article appeared in 2011, and as early as 2016 Larry Swedroe had added an allocation in equal parts, QSPRX, LENDX, AVRPX, and SRRIX (AQR Style Premium Alter...
by dcabler
Mon Mar 25, 2024 3:59 pm
Forum: Investing - Theory, News & General
Topic: Viewing your portfolio vs viewing them as separate components
Replies: 14
Views: 1143

Re: Viewing your portfolio vs viewing them as separate components

One difference I have notice compare to some people is that I have a tendency to view the portfolio as a whole rather than as individual components. I have attempted to research each components on their own but in the end it's mostly to see if they would fit better in the portfolio that what I have and I rarely actually make changes in my retirement portfolio. When I look at my portfolio, I do look at the return of the entire portfolio, but I don't really care too much about the return of the individual asset pieces. This is becasue they are all index fund and their return is because of the market. When I invested in actively managed fund in the 90's, I had religiously track each fund comparing them to their peers to make sure I was in the...
by dcabler
Mon Mar 25, 2024 7:45 am
Forum: Personal Investments
Topic: Some reasons to help me avoid the US/exUS debate
Replies: 43
Views: 3168

Re: Some reasons to help me avoid the US/exUS debate

You can't avoid the debate. Your investments must have an international % (from 0 to 100) and that % reflects your conclusions in the debate. I think it's less important to find the "correct" answer than it is to find an answer you're satisfied enough on that you can hold through periods of underperformance. Taking the "compromise" between the two biggest factions (market cappers versus all-USers) may seem reasonable, but what if ex-US starts to outperform year after year, with your portfolio only holding a measly 20%? Will you stay the course or will you fret, tinker, performance chase? If the answer is stay the course, then 80/20 is a good answer for you. Easier to say than do, but one can always attempt to make a dec...
by dcabler
Mon Mar 25, 2024 7:26 am
Forum: Investing - Theory, News & General
Topic: Deep Risk - Any newer books on this topic?
Replies: 5
Views: 1063

Re: Deep Risk - Any newer books on this topic?

Hello. We are generally conservative with our savings because we have variable (economy dependent) income and high expenses. We have an emergency fund which covers a longer time period than is normally recommended on here. I’d like to see if anyone has recommendations to read more about “Deep Risk” like William Bernstein wrote about. Is that the best book on the topic? Reading material like that helps me remain responsible and conservative with our savings. Thank you! There's also Taleb's "The Black Swan: The Impact of the Highly Improbable" from 2007. Just a fair warning, Taleb's writing style is not everybody's cup of tea - definitely not mine. I'm glad that when I attempted to read a couple of his books, including "Antifr...
by dcabler
Mon Mar 25, 2024 7:01 am
Forum: Personal Investments
Topic: Please help me organize the fixed income part of my portfolio
Replies: 133
Views: 8550

Re: Please hep me organise the fixed income part of my portfolio

Bond funds are available in a wide range of durations, so I don't know why you have a constant 7 years as the required investment horizon. But that applies to assets where you are spending principal. For bond assets that are generating income via interest, a short duration bond fund or money market is exposed to the risk of a considerable drop in interest rates and concomitant falloff in income. This could lead to spending principal whereas a somewhat longer duration would have provided for stability of income. There have always been at least a couple of schools of thought on this, at least on this forum. 1. Bond funds are just another investment that produces "returns". In times when yield curves are not inverted and yields aren...
by dcabler
Mon Mar 25, 2024 6:49 am
Forum: Personal Investments
Topic: Please help me organize the fixed income part of my portfolio
Replies: 133
Views: 8550

Re: Please hep me organise the fixed income part of my portfolio

My aim is to have about 30% of my portfolio in fixed income. Presently I have - 16% in vanguard money market 2 % in I bonds 5% in vanguard total bond fund 2.5% in limited term tax exempt 2.5 % in VIPSX- inflation protected securities 2% in treasuries Should I move about 10% from money market to VIPSX? Is it a good time to buy that ? Or should I buy more of VBTLX instead? Or dump whole fixed income n VBTLX or VIPSX? The above is separate from my EF. Before retirement, I subscribed to the "total portfolio" concept where I looked at and targetted an AA. It was 60% stock and 40% bonds which consisted of an intermediate term treasury bond fund (FUAMX) and I-bonds. A couple of years before retirement, things changed. 1. FUAMX was chang...
by dcabler
Sun Mar 24, 2024 5:37 pm
Forum: Personal Investments
Topic: Some reasons to help me avoid the US/exUS debate
Replies: 43
Views: 3168

Re: Some reasons to help me avoid the US/exUS debate

There is no way to know the "right" answer going forward with any certainty. There are only opinions and, boy, are there a lot of them on this forum on this topic.

Anyway, this is more noise that can be safely ignored. Do what makes you comfortable.

By geography, I am 80% US and 20% International developed, but I wouldn't say that it was a more common mix when you dig deeper than just geography. I have my reasons and I'm not interested in a debate on what they are or whether anybody else thinks they're valid.

My daughter, on the other hand is 70% US large cap (SP500) and 30% International developed (minus small caps). That's also likely to be just fine.

Cheers!
by dcabler
Sun Mar 24, 2024 7:33 am
Forum: Personal Finance (Not Investing)
Topic: 12 months before retirement what do you wish you had done
Replies: 72
Views: 8797

Re: 12 months from retirement what do you wish you had done

9 months retired. Worked long enough in the year to fill up tax advantaged. Used tax deferred as that provided an advantage in state taxes. I cashed out the max allowed for vacation. It would have been better for me if I had taken it as vacation, since I was only paid salary and not benefits like health insurance, but it would have caused problems for my team, so I did not . I left on the first of a month, which got me full benefits for that month. Very similar to my situation. 10 months retired myself. I filled up 401K before I retired (but I did that every year for the last 10 years or so to layoff-proof my 401K since my industry often has its layoffs at the end of the year). I get a true up for the corporate match this coming June, afte...
by dcabler
Sun Mar 24, 2024 6:29 am
Forum: Investing - Theory, News & General
Topic: Great news! No more [fixed real estate] agent commission
Replies: 238
Views: 22612

Re: Great news! No more agent commission

Where it gets interesting is that the buyer would now have the option to find the house directly at an open house or on the internet and make an offer on it without using their own agent. Isn't it ironic that in the USA - the land of the free market - one could not do that? I am from Eastern Europe and it sounds just absurd to must have an agent. You don't have to have an agent to buy a house. I've done it many times in the past. The reason why you keep reading about this whole "you need to have an agent to represent you" to protect your interest and to guide you through a very complicated process is mostly self serving exaggerated sense of importance marketed by the agents themselves. And most people are sheepy who just believe ...
by dcabler
Sat Mar 23, 2024 7:35 am
Forum: Investing - Theory, News & General
Topic: It is really that simple to do it the Bogleheads way?
Replies: 87
Views: 8180

Re: It is really that simple to do it the Bogleheads way?

I've made several posts of this nature but I decided to summarize the meat of what I want to say in this one. In short...is it really that easy to invest the Bogleheads way? I have read Jack Bogle's book and some other books on finance (Rich Dad Poor Dad and some I can't remember offhand) and it seemed clear-cut and simple enough. Buy index funds, hold. Profit. It's almost impossible to beat the market, so don't. I recall when I first started learning about finance years ago thinking that every investor needs to know alpha, beta, Sharpe ratio, candlestick theory etc...and that it was an arcane science that only a select few suit-clad males knew, and that's why we always saw the same faces. But apparently it isn't? There's so much informati...
by dcabler
Fri Mar 22, 2024 11:35 am
Forum: Personal Investments
Topic: 23 years old, question about investments in taxable acct
Replies: 25
Views: 1948

Re: 23 years old, question about investments in taxable acct

ruralavalon wrote: Fri Mar 22, 2024 11:25 am

It's often best to make maximum annual employee contributions ($23k) the employer plan as a priority ahead of contributions to a taxable brokerage account. vs also best to make maximum annual contributions ($7k) your IRA as a priority ahead of contributions to a taxable brokerage account.
Agree with this but only if the primary goal is retirement. Folks in their 20's might also be saving for other things, in which case they need easier access to the funds that 401K and IRAs won't provide.

Cheers.
by dcabler
Fri Mar 22, 2024 11:08 am
Forum: Personal Investments
Topic: VXUS Dividends showing up as all non-qualified
Replies: 17
Views: 1815

Re: VXUS Dividends showing up as all non-qualified

I had vanguard convert my VTIAX shares to the ETF VXUS inside of my Vanguard taxable brokerage account, so I could then transfer it in kind to Fidelity. The transfer to Fidelity happened at the end of February. I just received my first dividend payment of VXUS and all of the dividends are showing up as Non-Qualified. Where as in the past they have been a mix of qualified and non-qualified. Usually 60/40 split qualified vs non qualified. The cost basis looks like it was transferred properly to Fidelity so the individual purchase ages should be fine. Would the conversion to ETF have caused any issue with dividends now being listed as non-qualified? I would assume since it was a conversion that the dividend classification should stay the same...
by dcabler
Fri Mar 22, 2024 8:56 am
Forum: Investing - Theory, News & General
Topic: Buy and Hold Forever
Replies: 22
Views: 3670

Re: Buy and Hold Forever

nisiprius wrote: Fri Mar 22, 2024 8:51 am
NostraHistoria wrote: Thu Mar 21, 2024 7:53 pm Great responses. Thx.

Maybe BAHF should be added to the tenets of the Bogleheads?
I don't think so. "Forever" is too vague. And I think the idea is covered well enough by "Buy and hold forever" is not a slogan I've heard used in the forum, and without an explanation I wouldn't know what "BAHF" means.
this! And basing one's portfolio choices on slogans or sound-bites is probably also not the wisest decision one can make. Yet we often see things that are merely "good ideas" become dogma in some circles...

Cheers.
by dcabler
Fri Mar 22, 2024 8:47 am
Forum: Personal Investments
Topic: When one is ready to retire and pull out of the market.
Replies: 44
Views: 4879

Re: When one is ready to retire and pull out of the market.

Used to think Bonds were the place, but just a few years ago many Bonds dropped double digits. By Bonds, you obviously mean "Bond Funds". And, yes, they dropped double digits because their yields went up. And those higher yields will ultimately be the source of your bond fund's recovery over time. If you don't like the fact that bond funds move around with yields, you could do what many on this forum have done - and that's to switch to a bond ladder, specifically a TIPS ladder and hold each rung till maturity. Now to be fair, the market value of the TIPS ladder is going to act very similar as your bond fund did, but as long as you hold each of those bonds to maturity, you shouldn't care. And this is because you purchased the ladd...
by dcabler
Fri Mar 22, 2024 8:22 am
Forum: Personal Investments
Topic: 23 years old, question about investments in taxable acct
Replies: 25
Views: 1948

Re: 23 years old, question about investments in taxable acct

Here is the breakdown of my portfolio, Vanguard: 2023 Roth: $6500 $3000 in VTSAX $3000 in VTIAX 2024 Roth: $7000 All in settlement fund waiting to be invested Individual Brokerage (Taxable): $3000 All in settlement fund waiting to be invested -Lost on where to go from here; popular suggestions I've gotten are to avoid bonds at my age, to go all in in VTI or VT for taxable, all in for VTSAX for roth. What should I do? How does it currently look? Thanks in advance My daughter is 22 and what you're doing is similar to what she's doing. In her Roth 401K and in her Taxable brokerage account she is 70% US SP500 and 30% International Developed. This closely resembles an ETF from iShares, URTH, but can be done significantly more cheaply than URTH'...
by dcabler
Fri Mar 22, 2024 8:06 am
Forum: Personal Investments
Topic: When one is ready to retire and pull out of the market.
Replies: 44
Views: 4879

Re: When one is ready to retire and pull out of the market.

Lets say you always had a magic number that when hit, one says "Cool, I am happy to retire with that amount and live how I want. Lets get out of the market." Granted the market is on a roll, but as well know it can burst or the floor can drop at any moment. Would rather look back wishing I stayed in the market as I can live with that. Wishing I would have pulled out with my magic # but only have 75% or less of it available would be [Inappropriate comment removed. Pops1860] along with lots of regret. To avoid that potential "regret', after that magic number hits what does one do with the current investments when pulling out of the market? Used to think Bonds were the place, but just a few years ago many Bonds dropped double d...
by dcabler
Fri Mar 22, 2024 8:01 am
Forum: Personal Consumer Issues
Topic: When brand names matter and when they don't
Replies: 193
Views: 11814

Re: When brand names matter and when they don't

As far as really “getting what you pay for”, does it really matter which mayonnaise or katsup you buy? I’d want to focus on items like life insurance, automobiles and occasional higher dollar “wear and tear” items like roof shingles and tires. I doubt there are 5 active participants here who’s financial life will be even remotely affected by the $1.50 saved by buying store brand mayonnaise every 16 weeks. What is this katsup thing of which you speak? :D I think I may have been nabbed by the spelling police. I can’t even remember the last time I reached for the k or c work I may have misspelled. Lol. Was it potatoe or tomatoe that Dan Quayle famously misspelled? (Promptly tomatoe since it would be most appropriate here.) For the record, I d...
by dcabler
Fri Mar 22, 2024 7:52 am
Forum: Personal Consumer Issues
Topic: When brand names matter and when they don't
Replies: 193
Views: 11814

Re: When brand names matter and when they don't

Wanderingwheelz wrote: Fri Mar 22, 2024 7:41 am As far as really “getting what you pay for”, does it really matter which mayonnaise or katsup you buy?

I’d want to focus on items like life insurance, automobiles and occasional higher dollar “wear and tear” items like roof shingles and tires.

I doubt there are 5 active participants here who’s financial life will be even remotely affected by the $1.50 saved by buying store brand mayonnaise every 16 weeks.
What is this katsup thing of which you speak? :D
by dcabler
Fri Mar 22, 2024 7:37 am
Forum: Personal Consumer Issues
Topic: When brand names matter and when they don't
Replies: 193
Views: 11814

Re: When brand names matter and when they don't

bob60014 wrote: Fri Mar 22, 2024 7:08 am "Spaghetti sauce: store bought is unpalatable to me."

Try Raos, you can thank me later.
+1 on Raos.

Cheers.
by dcabler
Fri Mar 22, 2024 7:18 am
Forum: Investing - Theory, News & General
Topic: Reset 4% withdrawal floor if portfolio increases in value?
Replies: 93
Views: 8020

Re: Reset 4% withdrawal floor if portfolio increases in value?

Apologies if someone already mentioned this Michael Kitces piece, but if it it’s worth showing here since I think it’s relevant. https://www.kitces.com/blog/the-ratcheting-safe-withdrawal-rate-a-more-dominant-version-of-the-4-rule/ Yep, mentioned a couple of times upstream in this thread. There are a couple of points that are buried in what he wrote. First is that in most historical cases, a 4% rule would have resulted in a lot of money left over after 30 years. And the second is by the definition of his algorithm, a ratcheting will only happen when there is less than 30 years remaining. And the worst case historical SWR for less than 30 years is usually higher than it would be for 30 years. To a first order, the idea of ratcheting is to t...
by dcabler
Fri Mar 22, 2024 7:17 am
Forum: Personal Investments
Topic: Vanguard dividend projection feature?
Replies: 12
Views: 1285

Re: Vanguard dividend projection feature?

Geologist Thanks. I found it :oops: I never paid attention to it, but I just took a look. The number it's giving me for my primary stock fund is exactly the total distributions made in 2023. It isn't providing me anything more than I already had. I'll stick with my own model I use for tax purposes which consists of the historically highest dividends paid each quarter and the worst case percentage that was nonqualified. Cheers. I think it's fine that you do your own projection, but I'm not sure what Vanguard or anyone else could do to project dividends for stock funds. Stock fund do not lend themselves to exact predictions. Not sure why anybody would even expect an exact prediction of dividends or price when it comes to stock funds. But was...
by dcabler
Fri Mar 22, 2024 6:06 am
Forum: Personal Investments
Topic: Vanguard dividend projection feature?
Replies: 12
Views: 1285

Re: Vanguard dividend projection feature?

HappyJack wrote: Thu Mar 21, 2024 9:50 pm Geologist
Thanks. I found it :oops:
I never paid attention to it, but I just took a look.
The number it's giving me for my primary stock fund is exactly the total distributions made in 2023. It isn't providing me anything more than I already had. I'll stick with my own model I use for tax purposes which consists of the historically highest dividends paid each quarter and the worst case percentage that was nonqualified.

Cheers.
by dcabler
Thu Mar 21, 2024 4:42 pm
Forum: Forum Issues and Administration
Topic: Please Try Out Test Posts Here
Replies: 446
Views: 377138

Re: Please Try Out Test Posts Here

Avatar Test
by dcabler
Thu Mar 21, 2024 8:49 am
Forum: Personal Investments
Topic: Considering a TIPS ladder. Is this the right approach?
Replies: 26
Views: 2750

Re: Considering a TIPS ladder. Is this the right approach?

[Moved into a new thread from: Now that long TIPS yields are 60 bp off their highs I will… --admin LadyGeek] I'd appreciate some advice as I consider building a TIPS ladder, or equivalent, as an annuity substitute for my mother, 85 and in (expensive) assisted living for the rest of her life — she is in good health physically but with major cognitive disorder. Because her costs are so predictable (with the big unknown of the annual fee increase, which has run ahead of inflation the last few years at this facility), I am very inclined to do some kind of liability matching to age 100. I can obviously build a TIPS ladder for this purpose. But I'm not sure that is really materially better than simply buying TIPS funds with the right weighted av...
by dcabler
Thu Mar 21, 2024 7:18 am
Forum: Personal Consumer Issues
Topic: funeral preparations
Replies: 48
Views: 4441

Re: funeral preparations

My parents pre-planned and pre-paid for everything 20 years before the first one passed. It was amazing that none of us had to do much in the way of logistics because of that...

Cheers.
by dcabler
Thu Mar 21, 2024 6:26 am
Forum: Personal Consumer Issues
Topic: 40 Minutes to Connect in DFW
Replies: 61
Views: 4655

Re: 40 Minutes to Connect in DFW

I travelled for decades for business and I would not make that statement about DFW weather. I did a lot of flying during my career, both domestically and internationally, and the rule of thumb was to avoid Dallas in the spring/summer (I've been delayed by thunderstorms there multiple times and even once by a tornado) and avoid Chicago in the winter (blizzards and long waits for de-icing)... Cheers long term on-time arrival and departure rates of DFW is ahead of FLL, MIA, BWI, LAS, JFK, EWR, DEN, SFO, etc i also lived 15 minutes away from DFW and experienced a bit of its weather I tend to agree about long term - most of the year it's fine. I live within a couple of hours of DFW as well and traveling 2-3 times per quarter, I definitely hit t...
by dcabler
Thu Mar 21, 2024 5:35 am
Forum: Personal Consumer Issues
Topic: Flash drives vs external HDs?
Replies: 63
Views: 3924

Re: Flash drives vs external HDs?

jebmke wrote: Thu Mar 21, 2024 5:29 am Flash drives die often, even the better brands. I do not use them for anything critical. I keep a handful in a drawer for when the next one croaks.
I've got a little bowl on my desk full of these things. When I'm truly bored, I occasionally go through each one to see which ones are still working and to reformat each of those after making sure there isn't anything on them that I don't have somewhere else....

Long before password managers were common, I used one of these to store passwords. Encrypted drive with an encrypted spreadsheet.

Cheers.
by dcabler
Thu Mar 21, 2024 5:25 am
Forum: Personal Consumer Issues
Topic: Question re: mattress research/choices
Replies: 33
Views: 3344

Re: Question re: mattress research/choices

I always thought I wanted plain latex and cotton but I'm now more interested in the 'regular' or a blend type (hybrid). I have a sleep number store nearby but read things online about how parts and systems on that thing can break down and need replacing and it sounds like it's a nightmare (no pun intended) for some. Others of course love it. Anyway out of Naturepedic and Saatva, I'm more interested in the Saatva now, probably a 'Classic' model which just seems straightforward and the right height, etc. I hope their guarantee /year long sleep trial ability to return/refund/exchange is as ideal as it sounds. Not that I'd really want to return a mattress, but it sure feels nice to have that option. Which reminds me, I forgot about Costco. I d...
by dcabler
Thu Mar 21, 2024 5:15 am
Forum: Personal Consumer Issues
Topic: 40 Minutes to Connect in DFW
Replies: 61
Views: 4655

Re: 40 Minutes to Connect in DFW

hunoraut wrote: Tue Mar 19, 2024 4:23 am
What the airport can't (really) control is delays. There typically isn't weather related issues in DFW. But anyway, the responsibility is on the airline in case such things happen, and DFW is such a big airport there's always backup options.
I travelled for decades for business and I would not make that statement about DFW weather. I did a lot of flying during my career, both domestically and internationally, and the rule of thumb was to avoid Dallas in the spring/summer (I've been delayed by thunderstorms there multiple times and even once by a tornado) and avoid Chicago in the winter (blizzards and long waits for de-icing)...

Cheers
by dcabler
Thu Mar 21, 2024 5:13 am
Forum: Personal Consumer Issues
Topic: 40 Minutes to Connect in DFW
Replies: 61
Views: 4655

Re: 40 Minutes to Connect in DFW

UpperNwGuy wrote: Wed Mar 20, 2024 10:23 pm
lthenderson wrote: Tue Mar 19, 2024 9:26 am I find that if I have less than an hour between flights, my checked bags won't make it. I've lost my luggage several times at DFW, always due to short connection times.
This is important.
Absolutely! And which is why I stopped checking baggage years ago except occasionally for flights back home. Unfortunately, so have a lot of others, leading to overhead bins filling up quickly. Fortunately I have lifetime status with one of the major airlines (lowest tier) which at least gives me the possibility of getting an overhead bin before they all fill up.

Cheers.
by dcabler
Wed Mar 20, 2024 2:54 pm
Forum: Investing - Theory, News & General
Topic: Reset 4% withdrawal floor if portfolio increases in value?
Replies: 93
Views: 8020

Re: Reset 4% withdrawal floor if portfolio increases in value?

Thanks for all the great information and links. I guess in my example I am assuming this theoretical boglehead has complete and total faith in the monte carlo simulations and firecalc projections. I am assuming he has total faith in the past worst historical periods and that past performance IS predictive of future results. I am mostly concerned with bogleheads dying with large unspent estates. The SWR still seems to lead to very wealthy dead bogleheads. The reset or re-retire method seems like a tiny tweak that will lead to a greater good for a greater number of bogleheads. It's a re-retire or ratchet up or reset or recast or re-evaluation or refresh. Another point is if this theoretical boglehead did get some years of returns where his r...
by dcabler
Wed Mar 20, 2024 2:19 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security: On the Vagaries of Timing
Replies: 15
Views: 1772

Re: Social Security: On the Vagaries of Timing

tl;dr Apply to start benefits on FRA month or January. Make any changes for January Long version: This is what I have concluded after staring at the online SSSA graph of benefits and comparing to the output received from maximizemybenefits.com. It appears to be an implementation of this SS rule: Delayed Retirement Credit increases are effective: In the January of the year following the year the increment months were earned; In the month of attainment of age 70; or In the month of death, for widow(er)’s benefits with Delayed Retirement Credits. The bottom line appears to me to mean that if a start date or change date does not take effect in Jan or in the month of the FRA, the benefit will not be updated until the following January, and the ...