Bogleheads.org

RadAudit

Never heard of him. However, there is a non-zero probability that he might be right one day - probably the day after you go all in. I would suggest you spend some time and figure out an asset allocation that fits your need, ability and willingness to accept risk. Yes, a portfolio value will vary ove...

RadAudit

celia wrote: ↑
Thu Apr 19, 2018 2:31 pm
What problem does it mitigate? It certainly won't stop the pestering for money... NOW! In fact it might even exacerbate it.

I would think the next time the solicitor shows up on the doorstep, they could point to the driveway and say "Being of sound mind, we spent it all."

RadAudit

SeeMoe wrote: ↑
Thu Apr 19, 2018 12:33 pm
We were so upset that we did do as you suggested and I bought a red 2018 Mercedes , 385 hp , AMG GLE43 Sports coupe. Wife then did the same getting a white 2018 Mercedes GLE350 suv, and both are loaded too. So there!

SeeMoe..

That helps mitigate one problem!!

RadAudit

I know it is just me, but I can't understand all those people living very parsimoniously, only to finance a long (and a lot less secure) even more parsimonious retirement. What I get from glancing at this forum is that a number of posts are concerned with how soon can I get to an amount of money th...

RadAudit

I'm just hoping that VG keeps updating the total international stock and bond fund portfolios to track the indices. Then, I'll concern my self with the domestic / international allocations of stocks and bonds within my portfolio. I'm sure it will be high on the lists of concerns as I move forward to...

RadAudit

getting used to it. Switching gears from the accumulation phase to retirement does take some getting use to. Watching money go out the door with not enough coming in to make the portfolio balances go up can be unnerving, at first. Check your asset allocation (AA) and your sustainable withdrawal rat...

RadAudit

imo if your savings rate is really high and you know how much is spent on big ticket items (housing, vehicles, pets, medical, loan service), the rest just ends up being trivial, for us anyway. ~ +1 LBYM. Invest the rest and roll on. Of course, most of our big expenditures are in the past, I hope.

RadAudit

Personal opinion: Anything that offers a rate of return significantly greater than a government backed CD probably has some risk somewhere. You might want to keep that in mind.

RadAudit

but most of the simple portfolios I've come across recommend that at least 60-80% of our portfolio consists of US securities. Were the articles written for a US audience? If so, they may be shading their advice toward the hometown crowd's preferences. I'm from Europe and lately I've been thinking a...

RadAudit

dodecahedron wrote: ↑
Tue Apr 10, 2018 9:44 pm
"People always live for ever when there's an annuity to be paid them."

So, that's why so many folks on this site recommend annuities!!!

RadAudit

my point is that long periods of a rising stock market due tend to make one "think about increasing my equity side a little." I eventually decided not to. I was glad I didn't. Although I thought I'd been planning for the possibility of a 50% decline all along, when it actually happened the pain was...

RadAudit

There is a law firm in our area of the country that specializes in representing men who are going through a divorce. You may wish to see if your area has one of those types of firms.

RadAudit

GoldenGoose wrote: ↑
Sat Apr 07, 2018 10:59 am
Am I crazy?

I have a friend who deliberately withholds a large amount just so he can get a big return. I'm fairly sure he is not crazy. Not too good at math; but, not crazy.

RadAudit

I'm 71 AA is 50 / 50, Stocks are split 60 / 40 domestic / international, Bonds are split 70 / 30 domestic / international. The sub-set allocation follows, roughly, the VG Retirement Income allocation as I recall. The overall allocation was arrived at over several decades as I found out over successi...

RadAudit

VictoriaF wrote: ↑
Thu Apr 05, 2018 2:16 pm
The U.S. market has never lost 75%, but it could

I thought the US market (Dow) lost 90% over several years during the Depression. Could be wrong.

RadAudit

DanMahowny wrote: ↑
Sat Apr 07, 2018 1:18 pm

livesoft wrote: ↑
Sat Apr 07, 2018 12:23 pm
You can tell them:

Not my monkeys, not my circus.

Or buy them the T-shirt.
Agree 100%

May be not. Holiday dinners might become a real hoot.

RadAudit

In your case, it might be. Couldn't hurt.

For my returns, not so much.

RadAudit

aaja wrote: ↑
Thu Apr 05, 2018 11:32 pm
This makes me wonder whether the 3 fund portfolio is only for beginners

The simple answer is no.

RadAudit

Some BH would just point out that most of that information is available for free on Mr. Bogle's website.

RadAudit

I can also tell you that one attribute of a secret millionaire is that they understand very well that a million dollars isn't a lot of money. Good point. (At a 4% SWR, $40k doesn't go but so far.) The corollary to that observation is that you can't tell that to anyone else because they'll look at y...

RadAudit

bligh wrote: ↑
Wed Apr 04, 2018 4:25 pm
Is there a point at which you believe that your portfolio is could be too big to be held solely in the 3 or 4 fund portfolio?

Not any point I'm likely to get to.

RadAudit

Welcome to the forum.

2045, assuming that you'll retire at 60.

That's the simple answer. Could be a lot more complicated than that based on the unique particulars of your situation; but, it's a good place to start.

RadAudit

What are you going to do when you retire? I didn't remember seeing anything about what you wanted to do.

RadAudit

OP, thanks for starting this thread.

I've gone back and forth on this question more times than a ping-pong ball.

Lot to think about.

RadAudit

heyyou wrote: ↑
Wed Mar 28, 2018 8:42 pm
Calculate the Prime Harvesting amount, subtract the RMD from it, to find how much more to withdraw (WD).

I think you have a larger portfolio than I do.

RadAudit

I wonder what a conversation with an AI FA would sound like if a client needed hand holding during severe market turbulence.

RadAudit

Welcome to the forum. Well, given that you probably can't borrow your way through retirement, it might not be the best idea to loan too much to your daughter. And, since there are programs for forgiveness of student loans for some folks going in to the health care field, that might be the way to go....

RadAudit

I don't wish to guess at what GAAP wants. But, if you're normal retirement age (65) and planning on a 30 yr retirement to figure a SWR, you might leave money on the table compared to using a projection based on probable life span. Not the worse outcome possible.

RadAudit

A retiree day trading with hard earned savings going "full-bore" as their new job is a very dangerous game indeed. Many people have forgotten the harsh lessens of 1999-2001 (or were not investing yet.) Has it been that long? Time flies. I still remember the stories of folks going off the rails and ...

RadAudit

My money is in a four fund set up and most of it is in an IRA. I view both both tax deferred and non-tax deferred as parts of the same portfolio. The RMDs are taken from the bond side in tax deferred. Then, after I put enough money in a non-tax deferred MM for the year, the remainder goes in to a n...

RadAudit

He provides the exact details needed in Chapter 3 on page 91 of his free pdf download at http://livingoffyourmoney.com/ You may also want to take a look at the ERN article (the entire series on withdrawal strategies is excellent) that discusses a smoother version of harvesting to reduce the abrupt ...

RadAudit

Thanks to all for your comments on RMDs. Learned something today.

RadAudit

Ron wrote: ↑
Wed Mar 28, 2018 12:55 pm
Just remember, when folks start to talk about their 7 figure portfolios, that could mean anything from $10,000.00 to $9,999,999.

Both amounts have seven (digit) figures ...

- Ron

I always count the digits to the right of the decimal point.

RadAudit

I am not even close to spending my income since I retired. Congrats! :sharebeer Of course, some on the forum will argue for spending more if that's what you want to do. Or, they could point out you probably worked too long or saved too much. (Similar to the old saw about spent too much or died too ...

RadAudit

Thanks for the post.

OK. If the goal is FI, after you get by the first line, how do you calculate when you reach FI? Assets times some whole number? Cash flow? If so, from what?

RadAudit

But maybe there are interesting things to do that you might suggest? Looks as if you are off to a good start. I'm sure other interests will present themselves as time goes on. Best wishes. I'm sure you'll do OK. PS: I'm told gardening is good, if you like it. (Dad was raised on a farm. Liked to can...

RadAudit

Stay where you are and enjoy it. It's a lot less stressful to enjoy the work you do than to wonder every day if you have enough to retire and / or calculate the odds of running out of money before you die.

RadAudit

My instinct is just to buy all Vanguard total bond market even though it is a taxable account. The women is in her 50s. She has maybe 40 more years to go. If she doesn't need the money to live off of now, I'd recommend something with a little more potential for growth. Primarily, because inflation ...

RadAudit

segula wrote: ↑
Sun Mar 25, 2018 11:58 am
Thoughts on how to enjoy that time meaningfully?

Besides traveling and eating, what other activities are meaningful to you? Can you indulge in those activities on your retirement budget?

Nothing wrong with eating and traveling; but ...

RadAudit

Ok, so what are the guidelines for low, medium and high expense ratios? In other words, what would be the cut off for a low ER, .75%? From what I can pull up on internet, seems the general rule is anything under a .75% is considered low. Opinions differ on that. But, if it is the best you can do, y...

RadAudit

I guess one question is my ROTH TRP Cap Apprec fund has an expense ratio of .71, while Vanguard Target 2030 is .14. Will this difference in lower expense really add up over a 12 year period, or would the difference be minimum and not really a concern? The short answer is yes. I haven't looked at / ...

RadAudit

rad, No, also my TIAA-CREF 403(b) ($425,000.00). Ah, the plot thickens!! The question now becomes what is the right AA for a portfolio of a 1/2 mil? General answer of need, willingness ... still applies. Might want to go to the wiki and look for asking questions. Around here, the general advice run...

RadAudit

Well, typically as a general rule, what percentage of stocks and bonds is appropriate for a 55 yo with 12 year till retirement who is moderate? Not to be snarky, the AA should be the one that meets your need, willingness and ability to accept the risks necessary to meet your goals. But to give an a...

RadAudit

There are a number of BHers who are willing to accept what the markets provide. Some of those believe in LBYM.

RadAudit

I'm retired and taking RMDs. Additionally, I am also using Alt-Prime Harvesting which for the sake of this thread is close enough. My money is in a four fund set up and most of it is in an IRA. I view both both tax deferred and non-tax deferred as parts of the same portfolio. The RMDs are taken from...

RadAudit

Didn't see this posted; apologies if I missed it. Apparently, as may as 5% of the mutual funds can beat the S&P indices over 15 years. Now, if we only knew in advance ... http://www.aei.org/publication/more-evidence-that-its-very-hard-to-beat-the-market-over-time-95-of-financial-professionals-cant-d...

RadAudit

Roth says

So far in the first 18 years of the century, rebalancing has boosted returns.

I wonder how much the 18 year trend was helped by rebalancing just after 2008 - 2009? And around 2000, if I recall correctly.

RadAudit

+1 on having an emergency fund of about 6 months of expenses.

RadAudit

I'm retired. I'd make sure the portfolio AA agreed with my IPS and take the RMDs from the bond side of the portfolio. The bond side should cover SWRs for about 20 years.* I'd rebalance when / if stocks recovered to appropriate levels. * If stocks don't recover in 20 years, hopefully I'll think of so...

RadAudit

I've been taking RMDs from an inherited IRA for nine years now. Nothing major; but, I see no reason to forego the tax deferred compounding that this approach permits me. And, I see no reason to let the feds and the state tax me for a larger withdrawal; I can come up with the money I need from other ...

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