Search found 30482 matches

by dbr
Tue Nov 12, 2019 9:43 am
Forum: Personal Investments
Topic: Portfolio checkup
Replies: 2
Views: 205

Re: Portfolio checkup

1. What’s the best course for the $10k gift from wife’s grandfather? Invest in taxable according to asset allocation? A gift like that which is meaningful but relatively small compared to total assets can well be spent on some permanent addition to your possessions such as a nice piece of furniture...
by dbr
Tue Nov 12, 2019 9:35 am
Forum: Personal Finance (Not Investing)
Topic: Educate myself with financial planning
Replies: 2
Views: 170

Re: Educate myself with financial planning

Start with the wiki https://www.bogleheads.org/wiki/Main_Page Absolutely. There is a "getting started" section and a section of recommended books. The Boglehead books, Swedroe, and Ferri are among good ones, but I would read as much as possible. Advice is to pay attention to principles and understa...
by dbr
Tue Nov 12, 2019 9:28 am
Forum: Personal Investments
Topic: Investing $140k in cash at 1k per week
Replies: 93
Views: 4432

Re: Investing $140k in cash at 1k per week

Ok, looks like most recommended 12 months for DCA instead of 2.5 years. Is there a clear reason why 12 months is better? A better idea is to understand your asset allocation and once you know what you want just invest in it. I am convinced most attempts to somehow avoid risk and/or regret by DCA ar...
by dbr
Tue Nov 12, 2019 9:25 am
Forum: Personal Investments
Topic: Bond fund or ??
Replies: 2
Views: 341

Re: Bond fund or ??

If you want a personal preference it would be to settle on an asset allocation and use BND or any other diversified, low cost, intermediate term bond fund. On average over time intermediate bond funds are a good choice. See also the concept of the three fund portfolio. Lots of other choices in fixed...
by dbr
Tue Nov 12, 2019 9:08 am
Forum: Personal Investments
Topic: About to put $ in Fixed income, which one?
Replies: 15
Views: 1566

Re: About to put $ in Fixed income, which one?

While I'd like a higher yield, I'm not sure the risk-reward equation makes sense. Am I overlooking anything? If you don't want to take on even the most minimal risk then you are confined to CD's and MM funds/accounts. Risk is defined as the variability in return which is tracking how the difference...
by dbr
Mon Nov 11, 2019 9:55 pm
Forum: Personal Consumer Issues
Topic: Snow tires
Replies: 15
Views: 982

Re: Snow tires

They are not studded as thats illegal here I am sure...actually not sure where studded tires are legal anymore? Only five states have made studded tires illegal: Illinois, Michigan, Wisconsin, Minnesota, and Mississippi. Which of those is not like the others. What an ironic list. But maybe they kno...
by dbr
Mon Nov 11, 2019 9:38 pm
Forum: Personal Investments
Topic: Asset Allocation for larger portfolio
Replies: 29
Views: 1849

Re: Asset Allocation for larger portfolio

Good day, we are a retired couple (57, 53 yrs) with a 3 fund portfolio currently allocated to VTI 31%, VXUS 9%, BND incl. cash reserve 60%. Our withdrawal rate is about 3% p.a. and covers all household expenses (no pension, SS). Even at current elevated market levels our allocation to stocks appear...
by dbr
Mon Nov 11, 2019 9:11 pm
Forum: Personal Investments
Topic: Advice on Nest Egg draw down
Replies: 7
Views: 920

Re: Advice on Nest Egg draw down

OP, I found this book to be very helpful.... Your Complete Guide to a Successful & Secure Retirement https://www.amazon.com/dp/B07KRGVCZY/ref=cm_sw_r_cp_tai_joGYDb3CD0GC9 In addition, check out our WIKI, there is a lot of great info. WoodSpinner Those and perhaps this one: http://retirementoptimize...
by dbr
Mon Nov 11, 2019 4:29 pm
Forum: Personal Investments
Topic: About to put $ in Fixed income, which one?
Replies: 15
Views: 1566

Re: About to put $ in Fixed income, which one?

Among the various alternatives is the question of whether you want to invest in a long term portfolio that over time is a combination of risk and return that you find suitable or do you want to continually shop for what appears to be the highest interest rate available. There is probably not anythin...
by dbr
Mon Nov 11, 2019 9:46 am
Forum: Investing - Theory, News & General
Topic: Reduce Allocations
Replies: 8
Views: 884

Re: Reduce Allocations

jeffyscott Not an odd plan. I would like existing contribution to grow at 55/45 and new contribution to grow at 85/15 What makes sense is to understand what allocation you want overall and then place money accordingly. The result will certainly be the total of what you hold no matter how you divide...
by dbr
Mon Nov 11, 2019 9:37 am
Forum: Personal Investments
Topic: Asset Allocation for larger portfolio
Replies: 29
Views: 1849

Re: Asset Allocation for larger portfolio

It goes back to willingness, ability, and need to take risk. Someone with a large portfolio has less need to take risk (they already have a lot). They are able to take risk if willing to do so (because losing half of a large portfolio is still a large portfolio). If the person wouldn't have a large...
by dbr
Mon Nov 11, 2019 9:03 am
Forum: Personal Finance (Not Investing)
Topic: 401k fund manager investing for company
Replies: 2
Views: 280

Re: 401k fund manager investing for company

If I were an employee of the company I would not want my management and the management of the company 401k plan to be too closely engaged on a personal basis. To say this is somehow not permitted, I couldn't say. I suspect that in small companies it would not be unusual for the owner/executive manag...
by dbr
Mon Nov 11, 2019 8:46 am
Forum: Personal Investments
Topic: Dad is looking to move money out of Fisher Investments...need advice
Replies: 15
Views: 2186

Re: Dad is looking to move money out of Fisher Investments...need advice

I agree with homestretch. Your parents have a lot of money relative to what is needed to cover their planned spending. That means they can allocate that money about any way they want to. Your three scenarios are so similar there is no real choice among them. The real question is how much tolerance ...
by dbr
Sun Nov 10, 2019 7:11 pm
Forum: Personal Investments
Topic: Money Market Fund in IRA for RMD
Replies: 15
Views: 910

Re: Money Market Fund in IRA for RMD

RMD is a tiny fraction of the balance in your account. There is no need whatsoever to worry about holding money in cash in case of a downturn. The amount is on the order of 4% per year. Initially, this is true, but the percentage grows as you age. My father-in-law will be taking 9.25% this year. Re...
by dbr
Sun Nov 10, 2019 6:46 pm
Forum: Investing - Theory, News & General
Topic: Asset allocation question
Replies: 8
Views: 716

Re: Asset allocation question

You might want to read this thread which seems to ask the same question: https://www.bogleheads.org/forum/viewtopic.php?f=1&t=293692 80/20 delivers similar returns at less risk if the definition of similar is fairly wide. You can make the estimate that the expected return is the weighted average of ...
by dbr
Sun Nov 10, 2019 5:16 pm
Forum: Personal Investments
Topic: Money Market Fund in IRA for RMD
Replies: 15
Views: 910

Re: Money Market Fund in IRA for RMD

RMD is a tiny fraction of the balance in your account. There is no need whatsoever to worry about holding money in cash in case of a downturn. The amount is on the order of 4% per year.
by dbr
Sun Nov 10, 2019 4:17 pm
Forum: Personal Investments
Topic: Dad is looking to move money out of Fisher Investments...need advice
Replies: 15
Views: 2186

Re: Dad is looking to move money out of Fisher Investments...need advice

I agree with homestretch. Your parents have a lot of money relative to what is needed to cover their planned spending. That means they can allocate that money about any way they want to. Your three scenarios are so similar there is no real choice among them. The real question is how much tolerance t...
by dbr
Sun Nov 10, 2019 3:58 pm
Forum: Personal Investments
Topic: What should the AA of a young retiree be?
Replies: 20
Views: 1550

Re: What should the AA of a young retiree be?

Whatever their need, ability, and willingness to take risk results in. Asset allocation is a choice based on personal preference and judgement. Among other things a person has to look at the consequences implicit in choice of asset allocation, meaning the distribution in future wealth that might ac...
by dbr
Sun Nov 10, 2019 3:57 pm
Forum: Personal Investments
Topic: What should the AA of a young retiree be?
Replies: 20
Views: 1550

Re: What should the AA of a young retiree be?

Retiring with wealth today equal to 37 times expected annual expenses only means they probably have enough money to support a remaining lifetime of expenses (we don't know what age they are but assume around 60) at about any asset allocation with almost no chance of running out of money. ??? The fi...
by dbr
Sun Nov 10, 2019 3:45 pm
Forum: Personal Investments
Topic: What should the AA of a young retiree be?
Replies: 20
Views: 1550

Re: What should the AA of a young retiree be?

Whatever their need, ability, and willingness to take risk results in. Asset allocation is a choice based on personal preference and judgement. Among other things a person has to look at the consequences implicit in choice of asset allocation, meaning the distribution in future wealth that might acc...
by dbr
Sun Nov 10, 2019 3:34 pm
Forum: Investing - Theory, News & General
Topic: Retired: Do you withdraw from investments or cash ?
Replies: 74
Views: 9363

Re: Retired: Do you withdraw from investments or cash ?

But after a while I felt really uncomfortable with the idea that a sale of shares meant an automatic sale of 60% stocks and 40% bonds, so in May 2008 I shifted us to all Index Funds (Stocks and Bonds, US and international). When stocks tanked we were grateful that we could assert control over our p...
by dbr
Sun Nov 10, 2019 10:09 am
Forum: Investing - Theory, News & General
Topic: US Bonds in free fall
Replies: 46
Views: 4635

Re: US Bonds in free fall

A smart Boglehead on one of the “stock prices are falling” threads had some actionable advice I liked. Translated to “bond prices falling” it means ... it’s a favorable time for an in-kind conversion (of bond funds) from my IRA to my Roth IRA. Even though it’s a small drop in bond fund prices, I li...
by dbr
Sat Nov 09, 2019 9:09 am
Forum: Personal Investments
Topic: Windfall
Replies: 21
Views: 2081

Re: Windfall

A generic answer is to invest new money at the same asset allocation as existing money. If you had ended up $85k richer over time would you have changed how you invest? I think the same answer applies to setting aside money for travel or what your plan is for eventually paying off your mortgage. Thi...
by dbr
Fri Nov 08, 2019 8:22 am
Forum: Personal Investments
Topic: For TLH purposes is it better to have everything at one brokerage?
Replies: 4
Views: 407

Re: For TLH purposes is it better to have everything at one brokerage?

I would say there is some simplicity staying at one broker. For one thing if you sell at one broker and buy at another you would have to move the money in the process. I'm not sure it is easier to avoid wash sales but the accounting if you do have a wash sale might be more straightforward at one bro...
by dbr
Thu Nov 07, 2019 10:16 pm
Forum: Personal Consumer Issues
Topic: Is selling trees for lumber Immoral?
Replies: 33
Views: 2645

Re: Is selling trees for lumber Immoral?

As far as sustainable forestry you should probably consult your county extension agent, state forestry people, U Minn, or someone for advice. There can be state and federal programs to enter land in sustainable practice and status. Sorry I don't have a specific link. Some decades ago I had land that...
by dbr
Thu Nov 07, 2019 9:54 pm
Forum: Personal Finance (Not Investing)
Topic: Transferring Daughter's Funds to Her Efficiently
Replies: 16
Views: 1423

Re: Transferring Daughter's Funds to Her Efficiently

The annual $15,000 exclusion per donor is the point at which a gift tax filing is required. The lifetime exemption for you before any tax is due for gift and inheritance tax is $11,400,000. Some states may have different limits regarding state tax. It isn't clear if this is money gifted to the child...
by dbr
Thu Nov 07, 2019 4:41 pm
Forum: Personal Investments
Topic: Investment Allocation and Related Questions
Replies: 6
Views: 431

Re: Investment Allocation and Related Questions

5. Immediate Investment vs. Dollar Cost Averaging. Whether it is entirely rational or not, I am wary of investing a large portion of my investable assets at one time. Of the 2020 lump sum payment I expect to receive, I intend to invest perhaps $100K per month over the first 10 months of 2020. I fig...
by dbr
Thu Nov 07, 2019 2:44 pm
Forum: Investing - Theory, News & General
Topic: US Bonds in free fall
Replies: 46
Views: 4635

Re: US Bonds in free fall

I am at a loss why the 10 year Treasury is heading on it's way to breach 2% when the German 10 year Bund is currently yielding -0.24%. How exactly can this staggering divergence be sustainable? Why? Our economy is doing better. It’s not like a German can simply invest their currency in treasuries a...
by dbr
Thu Nov 07, 2019 2:16 pm
Forum: Investing - Theory, News & General
Topic: US Bonds in free fall
Replies: 46
Views: 4635

Re: US Bonds in free fall

Bonds are not in free fall.
by dbr
Thu Nov 07, 2019 2:15 pm
Forum: Investing - Theory, News & General
Topic: How to draw money from 401k in retirement?
Replies: 9
Views: 1445

Re: How to draw money from 401k in retirement?

You set an asset allocation, you choose how much you want to withdraw, and, as needed, you rebalance the asset allocation. None of this has anything to do with "living" off the stocks, the bonds, the dividends, or anything else in particular. The amounts you withdraw and spend will affect how well t...
by dbr
Thu Nov 07, 2019 1:58 pm
Forum: Investing - Theory, News & General
Topic: Bonds for Retirement
Replies: 12
Views: 1422

Re: Bonds for Retirement

The argument can be made that any bond should be inflation indexed. A result is that the only bonds available are Treasuries which occupy a tiny corner of the bond market hence are not diversified, if that matters. TIPS and I bonds are the only explicitly inflation indexed investment available in th...
by dbr
Thu Nov 07, 2019 11:28 am
Forum: Personal Finance (Not Investing)
Topic: Car rental insurance experiences
Replies: 31
Views: 2784

Re: Car rental insurance experiences

My husband damaged a rental car backing into a pole. We called USAA (our insurance carrier) paid our deductible and never heard another thing about it. So from our perspective, no need to purchase additional insurance. I do but it from the rental agency when renting a car in a foreign county. That ...
by dbr
Thu Nov 07, 2019 11:22 am
Forum: Personal Finance (Not Investing)
Topic: Social Security Claiming
Replies: 22
Views: 3193

Re: Social Security Claiming

It seems SS may be using the language "someone attempted to file an application using your personal information" for a number of online applications. They ask for "additional information." I think this must be some safeguarding regarding proof of identity whenever some of the information is inconsis...
by dbr
Thu Nov 07, 2019 11:15 am
Forum: Personal Investments
Topic: convincing someone of the wisdom of 'buy and hold' instead of selling in a market crash
Replies: 38
Views: 2610

Re: convincing someone of the wisdom of 'buy and hold' instead of selling in a market crash

my dad says it makes sense to buy when stocks are good and sell when stocks are bad. it's a terrible approach that means he's buying high and selling low. but one thing he says sort of makes possible sense. what if you knew that the market was going to go down so you sell? i think a lot of people d...
by dbr
Thu Nov 07, 2019 10:57 am
Forum: Personal Consumer Issues
Topic: What's the deal with the dentist?
Replies: 5
Views: 1201

Re: What's the deal with the dentist?

I think medical advice is off limits on the forum, but suggesting a second or even third opinion might be acceptable consumer advice rather than medical advice. A second comment is that with any medical or dental opinion one should ask for more information, specifically to understand the consequence...
by dbr
Thu Nov 07, 2019 10:46 am
Forum: Investing - Theory, News & General
Topic: Why ever buy & hold a LT treasury?
Replies: 60
Views: 2909

Re: Why ever buy & hold a LT treasury?

There is certainly a somewhat popular suggestion out there that financing retirement over a thirty year period holding individual 30 year TIPS might be a good idea. I don't think I read in the above replies that holding a nominal principal with a nominal income stream would not be a good idea in the...
by dbr
Sun Nov 03, 2019 11:12 am
Forum: Personal Investments
Topic: Monthly Dividends
Replies: 16
Views: 2164

Re: Monthly Dividends

I'm not entering into the eternal discussion of dividends vs total return. The following is something to think about if you are investing for dividends. I have investments that pay monthly (a couple of CDs), quarterly (most of my individual stocks), semi-annually (some of my international stocks), ...
by dbr
Sun Nov 03, 2019 11:06 am
Forum: Personal Investments
Topic: What role do bonds play in your portfolio?
Replies: 79
Views: 6501

Re: What role do bonds play in your portfolio?

I'm 37. When I was younger I never understood why hold bonds. I never bought any. I was 100% equities. As I have become older my net worth has increased significantly. My retirement accounts are all maxed out. I am 100% equities in those accounts because I have a 25 year + timeline so don't care ab...
by dbr
Sun Nov 03, 2019 11:02 am
Forum: Investing - Theory, News & General
Topic: How do you reconcile these two opposing views
Replies: 42
Views: 3659

Re: How do you reconcile these two opposing views

5) Your problem is you believe that you know enough to predict the market's (bond or stock) future. I don't. How do you even know that today's conditions are bad luck for investors? I feel misunderstood. Shame indeed. Other posters seem to know what I'm getting at though: Then most likely I am at f...
by dbr
Sun Nov 03, 2019 10:55 am
Forum: Personal Finance (Not Investing)
Topic: Car rental insurance experiences
Replies: 31
Views: 2784

Re: Car rental insurance experiences

It is certainly easy to be comfortable declining the CDW as being a scam and relying on credit card or own company insurance when nothing happens and there are no claims to file. It is equally easy to not worry about any insurance if nothing is going to happen. I don't think pressure from counter ag...
by dbr
Sun Nov 03, 2019 10:44 am
Forum: Investing - Theory, News & General
Topic: How do you reconcile these two opposing views
Replies: 42
Views: 3659

Re: How do you reconcile these two opposing views

Ok so let me boil it down to my current problem. I need to buy some bonds right now. Here's my two viewpoints: Viewpoint A Just buy bonds as per your portfolio (ex: 3-Fund). Disregard the current yields, future expected returns, or any other predictions. Buy into BND. Viewpoint B After periods of h...
by dbr
Sun Nov 03, 2019 10:09 am
Forum: Investing - Theory, News & General
Topic: How do you explain individual stock risk (idiosyncratic) vs. stock market risk (systematic) in a simple, intuitive way?
Replies: 21
Views: 1201

Re: How do you explain individual stock risk (idiosyncratic) vs. stock market risk (systematic) in a simple, intuitive w

What is the clearest and most intuitive way that you could explain this concept to someone? The clearest way to explain the difference between idiosyncratic and systematic risk, to my mind, is the classic chart below. https://i.imgur.com/nJqZGF1.jpg Source: PSU Diversification can eliminate idiosyn...
by dbr
Sun Nov 03, 2019 10:03 am
Forum: Investing - Theory, News & General
Topic: How do you explain individual stock risk (idiosyncratic) vs. stock market risk (systematic) in a simple, intuitive way?
Replies: 21
Views: 1201

Re: How do you explain individual stock risk (idiosyncratic) vs. stock market risk (systematic) in a simple, intuitive w

An important fact about idiosyncratic risk is that the extra risk is not accompanied by extra expected return. What it does mean is that the chances for a huge windfall or a huge disaster are much greater than with a diversified portfolio of stocks, which would still have the same expected return. E...
by dbr
Sun Nov 03, 2019 9:45 am
Forum: Investing - Theory, News & General
Topic: Beating the market using the benchmark that works for you
Replies: 8
Views: 700

Re: Beating the market using the benchmark that works for you

I have long since concluded that the only useful meaning of a benchmark is whether or not an index fund that intends to follow an index is actually doing that. Setting a benchmark from an index or portfolio that is not what one invests in would be by definition meaningless.
by dbr
Sun Nov 03, 2019 9:42 am
Forum: Investing - Theory, News & General
Topic: How do you reconcile these two opposing views
Replies: 42
Views: 3659

Re: How do you reconcile these two opposing views

I don't fall into camps and I don't try to use theoretical constructs like those to guide how I invest. I won't accuse you of misunderstanding anything because I am not sure I understand exactly what the discussion is about EMH in its different forms.
by dbr
Sun Nov 03, 2019 9:31 am
Forum: Personal Finance (Not Investing)
Topic: Car rental insurance experiences
Replies: 31
Views: 2784

Re: Car rental insurance experiences

I damaged two tires on a rental vehicle rendering the vehicle undrivable. Under CDW the rental company came out with another car and that was the end of it. No paperwork, no insurance claims, no deductibles, no bills, no additional charges, no delays, no hassles. Note CDW is not insurance. It is a d...
by dbr
Sun Nov 03, 2019 9:25 am
Forum: Investing - Theory, News & General
Topic: Why should bond duration = investment horizon?
Replies: 53
Views: 4079

Re: Why should bond duration = investment horizon?

NoHeat wrote:
Thu Sep 20, 2018 9:37 pm
The OP asked a good question, and vineviz answered it.

Beyond that, there are many unfortunate posts in this thread.
I don't know if the other posts are unfortunate but I was going to comment that the original answer by vineviz was the essence of it.
by dbr
Sun Nov 03, 2019 8:57 am
Forum: Personal Investments
Topic: Risk thoughts
Replies: 4
Views: 637

Re: Risk thoughts

Now would be a good time to try out some of the retirement income planners such as FireCalc, CFireSim, VPW, the Fidelity planner, Retirement Optimizer, and others. The point is to model all your sources of income with starting dates and see how well your portfolio will support the desired spending o...
by dbr
Sat Nov 02, 2019 9:52 am
Forum: Personal Consumer Issues
Topic: Replacing one tire on all wheel drive SUV
Replies: 13
Views: 1241

Re: Replacing one tire on all wheel drive SUV

You can probably look up somewhere what the tolerance is for mismatch of tread depth for the tires on any particular AWD vehicle. My understanding is that it does matter and can mean having to replace all four tires. I have also heard of shaving the new tire to remove tread to match. My guess is tha...