Search found 4304 matches

by MnD
Tue Nov 12, 2019 9:31 am
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 263
Views: 17051

Re: Will we be OK at 3% WR?

There’s a thing going on here that someone touched upon, that I think for a large number of Bogleheads is the case: many of us don’t like the idea of a long grind down in nest egg value. The hypothesis is that 4% will SURVIVE a 30 year retirement. But the concern is to not merely survive. Lower wit...
by MnD
Tue Nov 12, 2019 9:12 am
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 263
Views: 17051

Re: Will we be OK at 3% WR?

It took a while but it finally dawned on us our real risks to a long happy and successful retirement was premature death or lifestyle degrading disability/illness. And for a couple, it only takes a misfortune to one or the other to really mess up long-held hopes and plans for both. And even absent ...
by MnD
Mon Nov 11, 2019 10:19 am
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 263
Views: 17051

Re: Will we be OK at 3% WR?

Why would I take preemptively medicine for an illness that is historically very unlikely to occur when the medicine is expensive in terms of time lost and/or possibly reduces my quality of life, especially if contracting the illness (i.e. reducing one's discretionary spending) is far from fatal? Wh...
by MnD
Sun Nov 10, 2019 10:08 am
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 263
Views: 17051

Re: Will we be OK at 3% WR?

Why would I take preemptively medicine for an illness that is historically very unlikely to occur when the medicine is expensive in terms of time lost and/or possibly reduces my quality of life, especially if contracting the illness (i.e. reducing one's discretionary spending) is far from fatal? Wh...
by MnD
Sat Nov 09, 2019 6:10 pm
Forum: Personal Investments
Topic: What’s in your TSP?
Replies: 47
Views: 3278

Re: What’s in your TSP?

27% C, 13% S, 30% I and 30% G. Our other accounts are mainly broad index funds but have hefty positions and tilts to emerging markets and small cap international to balance the fact that the I fund does not cover these portions of international. Also an active global bond fund (DODLX) which pairs we...
by MnD
Wed Nov 06, 2019 9:19 am
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 2516
Views: 463001

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

+15.4%.
Detracting from a YTD model portfolio with our same AA of 16.1% is having a significant portion of our fixed income in stable value versus nominal bonds. Coming up on first year in retirement at the end of the month and I'm just pleased it didn't start out like 1966 (knock on wood)!
by MnD
Tue Nov 05, 2019 10:29 am
Forum: Personal Investments
Topic: Do you consider pensions as part of your overall asset allocation?
Replies: 67
Views: 5043

Re: Do you consider pensions as part of your overall asset allocation?

My question is simply, if you consider a pension as part of your asset allocation, exactly how do you use that information to change your stock/bond mix, versus just the simplistic, "I need X dollars a year from the investments." Roughly 50% of our income is from pension and 50% is from investment ...
by MnD
Mon Nov 04, 2019 6:11 pm
Forum: Investing - Theory, News & General
Topic: SWR and shorter time frames
Replies: 11
Views: 1047

Re: SWR and shorter time frames

Things like emergencies, severe health issues, dementia, lawsuits, divorce, children who urgently need money, etc., can dramatically and unexpectedly change your expenses. There are also wide swings in portfolio performance. If we go into a long and deep bear market soon after you retire that can s...
by MnD
Mon Nov 04, 2019 10:21 am
Forum: Personal Investments
Topic: How much money is really needed in retirement?
Replies: 74
Views: 9125

Re: How much money is really needed in retirement?

Coming up on one-year retired. Adjusted for changes in savings (not saving for retirement) and taxes (went way down) we are spending about the same as we did when working. We paid off the house a number of years before retirement and the payment was smallish (purchased 1991) so that was not a big fa...
by MnD
Sun Nov 03, 2019 5:05 pm
Forum: Investing - Theory, News & General
Topic: Unique withdrawal method
Replies: 65
Views: 6863

Re: Unique withdrawal method

I'm not aware of anyone else on this board or in real life that's using 5% of annual portfolio balance with a 3% inflation-adjusted SWR floor. It provides much more retirement income than low % SWR approaches in all but terrible sequences of returns. In terrible sequence of returns it is about as s...
by MnD
Sun Nov 03, 2019 8:43 am
Forum: Personal Investments
Topic: Do you consider pensions as part of your overall asset allocation?
Replies: 67
Views: 5043

Re: Do you consider pensions as part of your overall asset allocation?

My pension is most certainly a significant retirement asset with a net present value roughly equal to my investment portfolio. Not surprisingly it provides roughly one-half of our retirement income. Our true needs for income are roughly 1/3 of our total income from pension and portfolio income, ther...
by MnD
Fri Nov 01, 2019 12:38 pm
Forum: Investing - Theory, News & General
Topic: Unique withdrawal method
Replies: 65
Views: 6863

Re: Unique withdrawal method

I'm not aware of anyone else on this board or in real life that's using 5% of annual portfolio balance with a 3% inflation-adjusted SWR floor. It provides much more retirement income than low % SWR approaches in all but terrible sequences of returns. In terrible sequence of returns it is about as s...
by MnD
Fri Nov 01, 2019 9:44 am
Forum: Personal Finance (Not Investing)
Topic: H&R BLOCK Pre-Order 2019 Software Offer
Replies: 91
Views: 7296

Re: H&R BLOCK Pre-Order 2019 Software Offer

H&R Block Deluxe with state return was $18 at Amazon on Black Friday 2018 (Nov 23). That plus all the dishonest marketing from Turbo-tax about what version you need and price hikes moved me to H&R Block after decades using TT. I'm going to try and time the market again this year to buy at the bottom...
by MnD
Fri Nov 01, 2019 8:51 am
Forum: Investing - Theory, News & General
Topic: Unique withdrawal method
Replies: 65
Views: 6863

Re: Unique withdrawal method

I'm not aware of anyone else on this board or in real life that's using 5% of annual portfolio balance with a 3% inflation-adjusted SWR floor. It provides much more retirement income than low % SWR approaches in all but terrible sequences of returns. In terrible sequence of returns it is about as sa...
by MnD
Mon Oct 28, 2019 1:03 pm
Forum: Personal Consumer Issues
Topic: How much do you plan to spend on your children's weddings?
Replies: 182
Views: 8783

Re: How much do you plan to spend on your children's weddings?

For our son we are paying for a fairly high headcount rehearsal dinner and a gift of a trip to Hawaii.
Daughter-in-law's father is paying for the actual wedding costs.
For our daughter if and when that day arrives we'll offer a fixed sum of $10-15K towards the wedding.
by MnD
Mon Oct 28, 2019 9:36 am
Forum: Investing - Theory, News & General
Topic: New era for TSP "I" Fund?
Replies: 67
Views: 11492

Re: New era for TSP "I" Fund?

When the I fund was on-track for rollout in 2001 there was vocal criticism and calls from congress to not establish the fund. Main criticism was that it was "un-american" for federal workers to be able to invest outside the US thru the govt retirement savings system. I'm global market cap overall th...
by MnD
Mon Oct 28, 2019 8:21 am
Forum: Personal Finance (Not Investing)
Topic: Psychologically adverse to start drawing down in retirement
Replies: 82
Views: 8171

Re: Psychologically adverse to start drawing down in retirement

Both retired recently (mid-50's) and have had no problems like this. From the very first month we set up and automatically receive into checking a paycheck from our portfolio. That along with a monthly pension check provides a financial lifestyle equal to what we had when both working (minus all tha...
by MnD
Mon Oct 28, 2019 7:17 am
Forum: Personal Finance (Not Investing)
Topic: Do you plan to actually spend down your portfolio?
Replies: 104
Views: 9711

Re: Do you plan to actually spend down your portfolio?

Maybe, maybe not as that depends on what Mr. Market has in store. One year into retirement we are spending right on plan which is 5% of annual portfolio balance with a 3% inflation adjusted SWR floor. On the basis of historical sequences this plan left retirees (starting with $1M after 35 years) wi...
by MnD
Sun Oct 27, 2019 8:41 am
Forum: Personal Finance (Not Investing)
Topic: Do you plan to actually spend down your portfolio?
Replies: 104
Views: 9711

Re: Do you plan to actually spend down your portfolio?

Maybe, maybe not as that depends on what Mr. Market has in store. One year into retirement we are spending right on plan which is 5% of annual portfolio balance with a 3% inflation adjusted SWR floor. On the basis of historical sequences this plan left retirees (starting with $1M after 35 years) wit...
by MnD
Fri Oct 25, 2019 8:59 am
Forum: Personal Investments
Topic: Fidelity Disclosed Personal Account Information
Replies: 20
Views: 2688

Re: Fidelity Disclosed Personal Account Information

IMO you disclosed your personal information by providing Fidelity with a work number as a contact where messages are forwarded/available to others. Change your Fidelity contact number to cell only and chalk it up to lessons learned. On the bright side, having people at work know you aren't a financi...
by MnD
Sun Oct 20, 2019 7:25 am
Forum: Personal Finance (Not Investing)
Topic: Federal Employee Retirement & Timing
Replies: 5
Views: 793

Re: Federal Employee Retirement & Timing

Taken to the extreme (under FERS), retiring on the 1st of the month would result in the loss of a full month pension check in exchange for only 1 day of additional compensation versus retiring on the last day of the prior month. Also within any given month there is a unique day (depending on your da...
by MnD
Thu Oct 17, 2019 8:23 am
Forum: Personal Finance (Not Investing)
Topic: FEHB Open Season 2019
Replies: 76
Views: 5301

Re: FEHB Open Season 2019

There are lots and lots of people out there with very stable healthcare needs, for whom practically all their healthcare spend consists of maintenance medications and office visits with labs. For people like that, a non-HDHP plan will frequently make way more financial sense... or not, as they need...
by MnD
Tue Oct 15, 2019 8:49 am
Forum: Personal Finance (Not Investing)
Topic: What’s the proper way to pay yourself in retirement?
Replies: 66
Views: 8194

Re: What’s the proper way to pay yourself in retirement?

We generate a monthly income from portfolio by a fixed dollar amount withdrawal funded from a sale of assets that is proportional to our AA. The monthly amount is adjusted annually per a fixed percentage of annual portfolio balance. We also receive a pension check so 2 deposits a month - similiar to...
by MnD
Tue Oct 08, 2019 10:50 am
Forum: Investing - Theory, News & General
Topic: Bogleheads at Schwab - will you start buying Vanguard ETFs instead?
Replies: 16
Views: 1716

Re: Bogleheads at Schwab - will you start buying Vanguard ETFs instead?

Definitely VXUS versus the hodgepodge of SCHF, SCHC and SCHE that still doesn't fully index total international!
Sticking with SCHB for US.
by MnD
Wed Oct 02, 2019 11:18 am
Forum: Personal Investments
Topic: Retirees - do you hold extra cash for a bear market?
Replies: 93
Views: 9667

Re: Retirees - do you hold extra cash for a bear market?

Why would it be “mental accounting” to hold enough cash to get you through a stock market decline without needing to sell stocks? Sure, reasonable people can argue whether it’s a good idea. But “mental accounting?” Because maintaining a fixed asset allocation results in selling from equity when equ...
by MnD
Tue Oct 01, 2019 10:00 am
Forum: Investing - Theory, News & General
Topic: Charles Schwab (SCHW) Eliminating Commissions for Stocks, ETFs and Options Listed on U.S. or Canadian Exchanges
Replies: 106
Views: 10034

Re: Charles Schwab (SCHW) Eliminating Commissions for Stocks, ETFs and Options Listed on U.S. or Canadian Exchanges

Great! Been with Schwab since 1990 and have yet to be disappointed with ever-improving service and lower costs. This eliminates one of my three Schwab pet peeves, namely having to use 3 international Schwab ETF's to approximate an all-country (ex-US) all cap fund like VXUS to avoid paying commission...
by MnD
Thu Sep 26, 2019 10:45 am
Forum: Personal Finance (Not Investing)
Topic: Calling fellow schwabers [Where to park cash?]
Replies: 17
Views: 1730

Re: Calling fellow schwabers [Where to park cash?]

I have 25% in SWVXX (1.86%) and 75% in a 3-month 3-bill t-bill ladder (1.89%). Does Schwab support auto-roll of T-bill's yet? If not, is there a way to stay fully invested in T-bill's without going to cash for 5-6 days in between auctions? No auto-roll but old bills mature on the same day as the se...
by MnD
Thu Sep 26, 2019 9:25 am
Forum: Personal Finance (Not Investing)
Topic: Calling fellow schwabers [Where to park cash?]
Replies: 17
Views: 1730

Re: Calling fellow schwabers [Where to park cash?]

I have 25% in SWVXX (1.86%) and 75% in a 3-month 3-bill t-bill ladder (1.89%).
by MnD
Thu Sep 26, 2019 8:20 am
Forum: Personal Finance (Not Investing)
Topic: Success stories of NOT buying more/too much house
Replies: 109
Views: 18308

Re: Success stories of NOT buying more/too much house

We bought a 1950's ranch-style house with a big yard in 1991 in a boring unpopular inner ring suburb for $108K. Two conforming bedrooms plus a non-conforming tiny third bedroom, 2 bath. Everyone that could afford to was buying new, fancy multi-level houses (pressboard palaces) on little tiny lots mu...
by MnD
Wed Sep 25, 2019 8:41 am
Forum: Investing - Theory, News & General
Topic: Actively-managed bond funds
Replies: 21
Views: 1819

Re: Actively-managed bond funds

Index construction for passive bond funds are weighted to "most indebted" issuers and the mega-buyers of bonds are highly constrained in what they can invest in due to size and liquidity. I think individuals can do better. On the fixed income side I hold Dodge and Cox Income and Global Bond funds al...
by MnD
Mon Sep 16, 2019 12:04 pm
Forum: Investing - Theory, News & General
Topic: 5% Withdrawal Rate Recommended by US News Columnist
Replies: 141
Views: 11931

Re: 5% Withdrawal Rate Recommended by US News Columnist

Recently retired mid-50's now 57 and we're strictly following a 5% of annual portfolio balance spend with a floor of 3% inflation-adjusted. 70/30AA portfolio which provides about 50% of our total income. "Needs" are about 30% of our total income. We are both active, healthy and having a blast havin...
by MnD
Sun Sep 15, 2019 9:20 am
Forum: Investing - Theory, News & General
Topic: 5% Withdrawal Rate Recommended by US News Columnist
Replies: 141
Views: 11931

Re: 5% Withdrawal Rate Recommended by US News Columnist

Recently retired mid-50's now 57 and we're strictly following a 5% of annual portfolio balance spend with a floor of 3% inflation-adjusted. 70/30AA portfolio which provides about 50% of our total income. "Needs" are about 30% of our total income. We are both active, healthy and having a blast having...
by MnD
Sat Sep 14, 2019 9:19 am
Forum: Investing - Theory, News & General
Topic: Has the Thrift Savings Plan's I-Fund Changed to It's New Index?
Replies: 3
Views: 452

Re: Has the Thrift Savings Plan's I-Fund Changed to It's New Index?

The move to the new I-fund index is tied to the contract award of multiple fund managers for all TSP funds. Now that the TSP withdrawal modernization project is complete I'd expect news soon on that award. The RFP closed in July so stay tuned for news on the I fund this in conjunction with the award...
by MnD
Thu Sep 12, 2019 7:21 am
Forum: Investing - Theory, News & General
Topic: Schwab cutting 600 jobs - announced today
Replies: 28
Views: 5614

Re: Schwab cutting 600 jobs - announced today

I'd speculate this is affecting the advisors that are assigned to all retail accounts by default. IMO this service has little value for the DIY investor as much of what they offer to assist with can be done with a few clicks. Schwab is moving to a model of subscription-based unlimited advice from a ...
by MnD
Fri Sep 06, 2019 8:32 am
Forum: Personal Finance (Not Investing)
Topic: Improving the TSP [for current participants]
Replies: 418
Views: 62117

Re: Improving the TSP [for current participants]

DW left about $3K in the G fund, and sometimes I wonder why. The door is still open to move back, but I can't see why one want to. In a 1966-1982 retiree scenario, real returns on equity and bond holdings were hammered by rising interest rates and anemic equity returns, resulting in substantial por...
by MnD
Fri Sep 06, 2019 8:23 am
Forum: Personal Finance (Not Investing)
Topic: Improving the TSP [for current participants]
Replies: 418
Views: 62117

Re: Improving the TSP [for current participants]

I too saw that the FRTIB didn’t respond directly to the issues I raised. For example, they ignored my comment that they should allow spouses to sign general consents and not require multiple consents. They also completely ignored one of my principal comments. Again, I was more than disappointed. Mi...
by MnD
Mon Sep 02, 2019 8:28 am
Forum: Investing - Theory, News & General
Topic: Receiving $100K per year on a $2.5MM Portfolio
Replies: 35
Views: 7854

Re: Receiving $100K per year on a $2.5MM Portfolio

At age 68, your life expectancy is significantly less than a typical 30 year retirement. I think you could withdraw as much as 4.5%, perhaps 5%. Not sure I'm comfortable with this suggestion. I'd rather err on the more conservative side and limit withdrawals to 4%, perhaps even 3.5% Gill You are su...
by MnD
Tue Aug 27, 2019 12:42 pm
Forum: Personal Finance (Not Investing)
Topic: How Have You Planned for Sequence of Return Risk (SOR)?
Replies: 178
Views: 11643

Re: How Have You Planned for Sequence of Return Risk (SOR)?

Note that all techniques for reducing SoR risk also result in reducing returns and therefore wealth and spending in the long run. Percentage-of-portfolio withdrawal methods completely sidestep sequence of returns risk as it pertains to your portfolio and don't do anything to reduce returns. But thi...
by MnD
Thu Aug 22, 2019 10:09 am
Forum: Personal Investments
Topic: Anyone else more aggressive in retirement than required?
Replies: 52
Views: 4535

Re: Anyone else more aggressive in retirement than required?

I personally view retirement withdrawal plans that end up with a retiree checking out with several multiples of starting portfolio balance to be some combination of poor planning, lack of creativity and money-hoarding versus a badge of honor. I'd have utility for 10X my current retirement income - ...
by MnD
Wed Aug 21, 2019 8:45 am
Forum: Personal Investments
Topic: Anyone else more aggressive in retirement than required?
Replies: 52
Views: 4535

Re: Anyone else more aggressive in retirement than required?

In terrible sequence of returns (like 1966) the only things bonds did for a retiree is cause them to go broke a couple years sooner. I'm 70/30 and living off roughly a 50/50 mix from pension and portfolio mainly because I can afford to take risk, seem to be missing the asymmetric loss aversion gene ...
by MnD
Tue Aug 20, 2019 9:42 am
Forum: Investing - Theory, News & General
Topic: 60/40 VS 30/70 "Center Of Gravity"@@ Allocation for Retirees ??? Bernstein VS Ferri ?? -- What Would You Do?
Replies: 189
Views: 20138

Re: 60/40 VS 30/70 "Center Of Gravity"@@ Allocation for Retirees ??? Bernstein VS Ferri ?? -- What Would You Do?

The net present value and income provided by pension plus (later) social security is roughly equal to my portfolio value and income. Hence while portfolio is 70/30 in early retirement, overall equity risk exposure is 35/65. Needs are about 30% of spending/income, so no worries at 70/30 on the portfo...
by MnD
Tue Aug 20, 2019 7:56 am
Forum: Personal Investments
Topic: Using TSP versus non-government funds in retirement
Replies: 29
Views: 2317

Re: Using TSP versus non-government funds in retirement

At this point the G Fund is the only benefit I see of the TSP in retirement over an IRA. Two other issues with TSP in addition to those already mentioned is that it doesn't support qualified charitable distributions or Traditional to Roth conversions in retirement. This is harder to gauge but TSP f...
by MnD
Mon Aug 19, 2019 5:34 pm
Forum: Personal Investments
Topic: Using TSP versus non-government funds in retirement
Replies: 29
Views: 2317

Re: Using TSP versus non-government funds in retirement

I am writing to ask people with experience using TSP while in retirement if they see any issues with my plan. Is getting money out of TSP a hassle? Getting a regular distribution from the TSP has been easy. Getting one amount this month and a different amount 2 months from now has been difficult. B...
by MnD
Mon Aug 19, 2019 9:53 am
Forum: Personal Investments
Topic: Using TSP versus non-government funds in retirement
Replies: 29
Views: 2317

Re: Using TSP versus non-government funds in retirement

Sounds reasonable. I generate a automatic monthly "paycheck" from TSP in retirement, which along with monthly FERS pension check works out great. Our other accounts (mix of taxable, roth and traditional IRA's) are only used for paying estimated quarterly taxes and could be utilized as emergency fund...
by MnD
Sun Aug 18, 2019 9:59 pm
Forum: Investing - Theory, News & General
Topic: How about an 856-year bond?
Replies: 24
Views: 3329

Re: How about an 856-year bond?

Here's a 370-year old bond issued by the Water Board of Lekdijk Bovendams, Netherlands still paying interest.
5% perpetual.
https://som.yale.edu/blog/366-year-old- ... g-interest
http://oov.som.yale.edu/search_detail_book.php?id=11230
by MnD
Fri Aug 16, 2019 9:55 pm
Forum: Investing - Theory, News & General
Topic: Any retired person have stocks and cash I was thinking about a 70/30
Replies: 61
Views: 4886

Re: Any retired person have stocks and cash I was thinking about a 70/30

I am recently retired mid-50's , 70/30 with the 30% mostly in TSP G which has some stable value/cash characteristics. Withdrawing 5% of annual portfolio balance with a 3% inflation-adjusted floor. This is roughly as risky as a 3.3% inflation-adjusted SWR. ~50% of income is from pension and later SS,...
by MnD
Wed Aug 14, 2019 9:11 am
Forum: Investing - Theory, News & General
Topic: Vanguard promoting their Actively managed funds
Replies: 54
Views: 4495

Re: Vanguard promoting their Actively managed funds

Excellent ultra-low cost (or no cost) index funds are now a dime a dozen and Vanguards competitors pair them with better service and other extras like cash management/checking services, credit cards ect. to create one-stop financial homes. OTOH excellent low-cost active funds are not so common so it...
by MnD
Tue Aug 13, 2019 7:36 am
Forum: Personal Investments
Topic: Withdrawals During Retirement - Yearly, Quarterly, Monthly?
Replies: 51
Views: 7489

Re: Withdrawals During Retirement - Yearly, Quarterly, Monthly?

I am not retired but I would do monthly on the same principle as doing lump sum during accumulation. During accumulation you generally want as much money in the market as possible over time earning return. That means contributing as much as you can as soon as you can. During retirement I would incl...
by MnD
Sat Aug 03, 2019 8:14 am
Forum: Personal Finance (Not Investing)
Topic: Federal Employee Burn or Sick Leave [before retirement]
Replies: 125
Views: 9519

Re: Federal Employee Burn or Sick Leave [before retirement]

I retired near year-end 2018 at age 56 with 34 years 8 months of actual fed service and my 2400+ hours of unused sick leave added 1 year 2 months to my service for annuity purposes. My family has average longevity and DW's family has extreme longevity so the initial 3.44% increase in service and pen...
by MnD
Fri Aug 02, 2019 7:42 am
Forum: Personal Consumer Issues
Topic: Are all models of Toyota generally considered reliable?
Replies: 52
Views: 5284

Re: Are all models of Toyota generally considered reliable?

Would you consider a vehicle whose frame became so rusted and structurally unsafe that the NHTSA forced the manufacturer to recall vehicles and replace the frame to be reliable? Ask Toyota Tacoma owners, then. In 2018 the frame and leaf springs were replaced under a voluntary service agreement (fra...