Search found 33581 matches

by dbr
Tue Sep 15, 2020 2:21 pm
Forum: Personal Investments
Topic: Vanguard funds in retirement
Replies: 15
Views: 1407

Re: Vanguard funds in retirement

Trying to assemble a portfolio of Vanguard funds starting in 2021 for our retirement when we will both be 65. So far have used Vangaurd indexing for decades but now will be looking at preserving what we have through dividends, and still intl exposure, bonds, etc. So many to choose from, etf vs fund...
by dbr
Tue Sep 15, 2020 12:04 pm
Forum: Personal Investments
Topic: Anyone successfully living off dividends & interest?
Replies: 203
Views: 18523

Re: Anyone successfully living off dividends & interest?

Umm, probably still missing part of your point. For example, the SWR studies most certainly do say something about the investments selected (mostly S&P 500, with different bond portfolios tried in different studies). Among other things, we have the best data with the broad market index es (whether ...
by dbr
Tue Sep 15, 2020 11:50 am
Forum: Personal Consumer Issues
Topic: Caretaker for parents?
Replies: 45
Views: 2643

Re: Caretaker for parents?

A happy ending? Wow, that is rare! Lots of gloom and doom around this topic, with placement in a facility seen as a last resort. I haven't been through any of this, but as an outside observer, placing the person in a facility designed to deal with the problem seems like an obvious choice. Would you...
by dbr
Tue Sep 15, 2020 10:52 am
Forum: Personal Consumer Issues
Topic: Bike Recommendation
Replies: 42
Views: 2892

Re: Bike Recommendation

The real choice to make in bikes, aside from price, is versatility and riding position. Versatility ranges from road bikes with skinny tire, which are confined to good quality paved surfaces, up to fat tire bikes, which were originally developed to ride snow covered trails but are also at home in ci...
by dbr
Tue Sep 15, 2020 10:24 am
Forum: Personal Investments
Topic: Anyone successfully living off dividends & interest?
Replies: 203
Views: 18523

Re: Anyone successfully living off dividends & interest?

Thus I said it uses "total return" and you are saying it's "total return accounting" and I confess to not understanding the subtle point you are making into how the studies should be considered :-). What the studies generally do not do is try and figure out what happened if you just withdrew divide...
by dbr
Tue Sep 15, 2020 10:01 am
Forum: Personal Investments
Topic: Cost Basis Reliable?
Replies: 4
Views: 299

Re: Cost Basis Reliable?

Are these covered shares? http://usfunds.com/investing-with-us/faqs/cost-basis-faqs/what-are-covered-and-non-covered-shares/ If they are then when you sell Vanguard will report the data they have to the IRS. If that data were wrong you would have a time getting it changed. In that sense you are good...
by dbr
Tue Sep 15, 2020 9:29 am
Forum: Personal Consumer Issues
Topic: Caretaker for parents?
Replies: 45
Views: 2643

Re: Caretaker for parents?

One thing we discovered is that the elderly family member may be happier and actually prefer life in a care facility. That is not because care facilities are wonderful but because the benefits of being in one's own home fade and the difficulties surface, including discomfort and insecurity. In our c...
by dbr
Tue Sep 15, 2020 9:23 am
Forum: Personal Investments
Topic: Anyone successfully living off dividends & interest?
Replies: 203
Views: 18523

Re: Anyone successfully living off dividends & interest?

First, whether your portfolio is 100k or 10M, there are guidelines/strategies, etc on how much money you can pull from that portfolio without running out of money during retirement. Note that most/all of the safe withdrawal strategy rate (SWR) studies I've seen use a total return strategy when inve...
by dbr
Mon Sep 14, 2020 8:05 pm
Forum: Personal Consumer Issues
Topic: Caretaker for parents?
Replies: 45
Views: 2643

Re: Caretaker for parents?

I would also add that even if care comes through a care facility you or someone needs full legal authority to deal with a person's affairs. This means a durable power of attorney actually exercised at banks etc., a health care power of attorney and so on. In one of the three cases I was involved in ...
by dbr
Mon Sep 14, 2020 3:56 pm
Forum: Personal Consumer Issues
Topic: Caretaker for parents?
Replies: 45
Views: 2643

Re: Caretaker for parents?

I have experienced three instances of this sort of care. In each case it was not long before the care needs progressed to at least full time (7x24) attention. In one case it was possible to maintain a family member at their home pretty much until final days. These situations involved Alzheimers, sen...
by dbr
Mon Sep 14, 2020 3:16 pm
Forum: Personal Investments
Topic: transitioning portfolio with age
Replies: 29
Views: 2522

Re: transitioning portfolio with age

recently been debating if I should do a roth ira and broker account (concerned about taxes even though I dont have alot $$ to invest) or go with a Roth solo 401k instead of the broker would be more savings long term? I don't know if this Wiki page addresses your decision about Roth 401k: https://ww...
by dbr
Mon Sep 14, 2020 1:46 pm
Forum: Personal Investments
Topic: Substituting bond with RE/utility ETFs?
Replies: 46
Views: 2548

Re: Substituting bond with RE/utility ETFs?

Thank you for comments. I may be way off with my considerations, that’s why I seek advice at this forum. I choose 80/20, assuming that bonds will keep up with the inflation. As it’s not the case anymore, I’m looking for the alternative. If no alternative is available, I will probably switch to 100/...
by dbr
Mon Sep 14, 2020 11:56 am
Forum: Personal Investments
Topic: transitioning portfolio with age
Replies: 29
Views: 2522

Re: transitioning portfolio with age

I like approach a lot. I still have a hard time deciding on what my end numbers should be. I guess just use 25 times annual need and pick something basic like 50/50 AA. It is very difficult to establish that some other choice is going to be better for sure. It is also very difficult to establish th...
by dbr
Mon Sep 14, 2020 11:44 am
Forum: Personal Investments
Topic: Thanks in advance [investing inheritance]
Replies: 12
Views: 634

Re: Balanced Vanguard or pick Total Stock and Total Bond

I would comment that just because one has assets in a taxable account does not mean these assets are not "for retirement." Most likely for you these are in fact retirement assets. The recommendation to consider taxable and retirement accounts as one is a good idea. That said, people do sometimes hav...
by dbr
Mon Sep 14, 2020 11:22 am
Forum: Personal Investments
Topic: Real estate vs. equities for 10 years
Replies: 1
Views: 267

Re: Real estate vs. equities for 10 years

Assuming returns in stocks and real estate is a huge, huge, serious mistake. Please don't do this. Real estate is risky and can lack liquidity. Assuming you can simply sell things on the spot for a known in advance value is just wrong. Stocks are risky and can lose half their value in the blink of a...
by dbr
Mon Sep 14, 2020 10:57 am
Forum: Personal Investments
Topic: Allocation at RMD
Replies: 17
Views: 1202

Re: Allocation at RMD

I will start RMD's in 2021. My 401K and tIRA are about 50% and taxable is also about 50%. Keeping my overall allocation the same, would it be a good idea to shift some or all equities from the tIRA/TSP to the taxable account (index funds to hold)? I do not plan to spend the taxable account. What am...
by dbr
Mon Sep 14, 2020 10:22 am
Forum: Personal Investments
Topic: Substituting bond with RE/utility ETFs?
Replies: 46
Views: 2548

Re: Substituting bond with RE/utility ETFs?

If you want to reassess your original asset allocation and honestly agree 80/20 was a mistake and a better choice would have been 100/0, then it would make sense to replace bonds with stocks. If that is the case then 100% VTI probably makes more sense than trying to imagine unrealistic things such a...
by dbr
Mon Sep 14, 2020 9:07 am
Forum: Personal Consumer Issues
Topic: Bike Recommendation
Replies: 42
Views: 2892

Re: Bike Recommendation

I'd reconsider no gears unless you want to potentially damage your knees. I've had the same 24-gear hybrid bike since 1996. There's not much that goes wrong with it. Agreed. Especially older people need to go easy on the joints and muscles by having having low enough gears to ride with low torque a...
by dbr
Mon Sep 14, 2020 9:00 am
Forum: Personal Consumer Issues
Topic: PSA: switch to LED light bulbs and save hundreds per year
Replies: 165
Views: 10656

Re: PSA: switch to LED light bulbs and save hundreds per year

One thing often overlooked is lifespan. With incandescent bulbs it seemed like I was forever replacing bulbs. With the newer LED's practically never! We were early adopters when you paid thru the nose for a buld with a mass of individual LEDs and those sucked. Not replacing light bulbs has been my ...
by dbr
Mon Sep 14, 2020 8:51 am
Forum: Personal Consumer Issues
Topic: Bike Recommendation
Replies: 42
Views: 2892

Re: Bike Recommendation

I'd reconsider no gears unless you want to potentially damage your knees. I've had the same 24-gear hybrid bike since 1996. There's not much that goes wrong with it. Agreed. Especially older people need to go easy on the joints and muscles by having having low enough gears to ride with low torque a...
by dbr
Mon Sep 14, 2020 8:24 am
Forum: Personal Investments
Topic: transitioning portfolio with age
Replies: 29
Views: 2522

Re: transitioning portfolio with age

recently been debating if I should do a roth ira and broker account (concerned about taxes even though I dont have alot $$ to invest) or go with a Roth solo 401k instead of the broker would be more savings long term? I don't know if this Wiki page addresses your decision about Roth 401k: https://ww...
by dbr
Sun Sep 13, 2020 11:03 am
Forum: Investing - Theory, News & General
Topic: Reduce risk of value funds
Replies: 1
Views: 165

Re: Reduce risk of value funds

I guess the rules of the game are that if you choose a small and value tilt you keep it forever. Certainly you don't bail when you are down. But what numbers do you have for risk to show that your proposed move reduces risk by a significant amount or at all? You could plug your portfolio into Portfo...
by dbr
Sun Sep 13, 2020 10:47 am
Forum: Personal Finance (Not Investing)
Topic: FIRE Calculator Accurate?
Replies: 13
Views: 1831

Re: FIRE Calculator Accurate?

If this is the calculator linked in a reply above you have to choose either the historical returns or the Monte Carlo simulation to make any sense of the problem. Using historical returns finesses away the necessity to guess the expected returns. Using MC still asks for an expected return but at lea...
by dbr
Sun Sep 13, 2020 10:38 am
Forum: Personal Investments
Topic: Portfolio Reconfiguration Feedback Requested
Replies: 12
Views: 625

Re: Portfolio Reconfiguration Feedback Requested

1. Am I tilting too heavily towards mid-/small-cap? My concern is that too few stocks dominate the S&P 500’s movement. I see the 30% Extended as a hedge/diversification against that, but perhaps that’s wishful thinking or ignorance. I’m open to other thoughts/education. Read this book by Swedroe an...
by dbr
Sun Sep 13, 2020 10:31 am
Forum: Personal Investments
Topic: transitioning portfolio with age
Replies: 29
Views: 2522

Re: transitioning portfolio with age

Portfolio risk and return as set by stock/bond asset allocation is a matter of personal preference and judgement. It can be set by thinking through need, ability, and willingness to take risk. As a generalization this is going to result for most people in being more aggressive when young and more co...
by dbr
Sat Sep 12, 2020 8:32 pm
Forum: Personal Investments
Topic: Anyone successfully living off dividends & interest?
Replies: 203
Views: 18523

Re: Anyone successfully living off dividends & interest?

In my fantasy world, I would invest for total return but have enough invested so that the dividends provided for all my desires and the investment would continue to grow forever. Not trying to be argumentative, but why? Why are you better off with a runaway pile of money that you will never live to...
by dbr
Sat Sep 12, 2020 8:09 pm
Forum: Personal Investments
Topic: Anyone successfully living off dividends & interest?
Replies: 203
Views: 18523

Re: Anyone successfully living off dividends & interest?

So on your "capital preservation" question--I'll answer it like this -- if some folks have constructed their retirement portfolio "like a bond" where their goal is: "I give you $2 million, you give me 3%/year + inflation. After 40 years, you give me my $2 million back"--then I would like to know ho...
by dbr
Sat Sep 12, 2020 3:09 pm
Forum: Personal Investments
Topic: Anyone successfully living off dividends & interest?
Replies: 203
Views: 18523

Re: Anyone successfully living off dividends & interest?

We can differ whether that is part of what the OP is asking. It would be nice if the OP would come back and clarify. I think you want me to clarify what I mean by "income only?" Basically, a portfolio that puts capital preservation first and foremost -- and throws off enough income/dividends/intere...
by dbr
Sat Sep 12, 2020 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: Projected inflation rate and equity rate of return
Replies: 27
Views: 1334

Re: Projected inflation rate and equity rate of return

I'd use e/p or 1/CAPE for real equity returns, current YTM (or SEC yield) for comparable bonds for bonds and 2% for inflation (Fed target). Then I'd use error bands of at least 5 percentage points (perhaps 8 or 10) either way on the result (equity likely to be the most uncertain). Indeed. By the ti...
by dbr
Sat Sep 12, 2020 12:28 pm
Forum: Personal Investments
Topic: Creating a DIY savings account with an investment account
Replies: 27
Views: 1872

Re: Creating a DIY savings account with an investment account

My main complaint is I do not know how the return compares. Locking in an I bond at 0% guaranteed return appears foolish if I don't know what that has paid out in the past. I would think buying these with a higher guaranteed rate would be a much better deal over the long run but locking in a 0 now ...
by dbr
Sat Sep 12, 2020 10:32 am
Forum: Personal Investments
Topic: Anyone successfully living off dividends & interest?
Replies: 203
Views: 18523

Re: Anyone successfully living off dividends & interest?

How does one get 30K per year in SS? How high of a income does a single person need to get to that? Is it assumed they are working until their Full Retirement Age at the highest level of income until they are FRA (which might be 66 or 67?) I an single and always have been. I would like to step away...
by dbr
Sat Sep 12, 2020 9:51 am
Forum: Personal Investments
Topic: Anyone successfully living off dividends & interest?
Replies: 203
Views: 18523

Re: Anyone successfully living off dividends & interest?

I don't have enough money to live off dividends and interest. However, the dividends and interest produced by my portfolio are enough to fund all the portfolio withdrawals we make. That, however, is a happenstance that has nothing to do with anything in particular. We don't take dividends and intere...
by dbr
Sat Sep 12, 2020 9:35 am
Forum: Personal Investments
Topic: Efficient liquidation of Vanguard funds
Replies: 10
Views: 989

Re: Efficient liquidation of Vanguard funds

I want to make a couple of things clear in my mind: If I sell a whole fund doesn't all the tax lots cancel out if for example the unrealized tax gains/losses are 0? Yes, as far as it goes the total would have to add up to zero gain, zero loss. But you really should be lining up all the tax lots of ...
by dbr
Sat Sep 12, 2020 9:22 am
Forum: Personal Investments
Topic: Best option to protect my medium spending needs
Replies: 6
Views: 550

Re: Best option to protect my medium spending needs

It all depends on your withdrawal rate. What is the size of your portfolio and of your spending. You don't say what BND and BSV are, so I looked them up. Moving three years of spending from total bond market to short term bond fund is going to make no difference whatsoever in your prospects. On aver...
by dbr
Fri Sep 11, 2020 2:40 pm
Forum: Personal Investments
Topic: Where to invest fixed income?
Replies: 26
Views: 3217

Re: Where to invest fixed income?

The BH philosophy on this kind of thing is to massively overanalyze bonds and then split in twenty different directions regarding what optimum may or may not exist or whether some immediate alarming action needs to be taken. You can probably decide, or more likely fail to decide, for yourself after ...
by dbr
Fri Sep 11, 2020 12:59 pm
Forum: Personal Investments
Topic: Is there a tax-efficient, one-fund portfolio?
Replies: 22
Views: 1922

Re: Is there a tax-efficient, one-fund portfolio?

Since target date funds cannot seem to meet this criteria due to bond holdings and turnover, is there anything else out there can be used in a taxable account? As others said it depends on how much you want to hold in bonds and on your tax rates. Most TR funds start at 90% stocks or so and these da...
by dbr
Fri Sep 11, 2020 10:30 am
Forum: Personal Investments
Topic: Invest in 1 Vanguard Fund - VIGAX -- Is it wrong ?
Replies: 25
Views: 3895

Re: Invest in 1 Vanguard Fund - VIGAX -- Is it wrong ?

I understand many on this forum recommend 3 funds strategy, but am I doing something really long by going all-in on VIGAX ? Performance: https://finance.yahoo.com/quote/VIGAX/performance/ It would be hard to say that using only that fund is actually going to be wrong for you. But you are absolutely...
by dbr
Fri Sep 11, 2020 10:23 am
Forum: Personal Investments
Topic: Four-fund plans with a growth tilt
Replies: 8
Views: 422

Re: Four-fund plans with a growth tilt

I have a four-fund plan to divide a quarter million dollars in IRA. Any comments? I am looking at a 10-years. VTI - 30% VXUS - 20% VUG - 30% BND - 20% @ramven Plug the portfolio into portfolio visualizer. Growth investments are so-named for a reason. What many commentators exclude from the discussi...
by dbr
Thu Sep 10, 2020 7:20 pm
Forum: Personal Investments
Topic: Asset Allocation at age 61
Replies: 36
Views: 3005

Re: Asset Allocation at age 61

What do you mean by “generate around 55K?” Are you trying to avoid selling any assets? Because that can cause you to end up with a less-than-optimal allocation. At your age, you realistically can take 4% a year — $80,000 adjusted for inflation annually. Whether that’s from earnings/income or withdr...
by dbr
Thu Sep 10, 2020 12:12 pm
Forum: Personal Investments
Topic: How do I hedge inflation for a non-COLA pension
Replies: 7
Views: 721

Re: How do I hedge inflation for a non-COLA pension

The only protection of this income stream is for other sources of income to increase faster than inflation. For one thing TIPS, which are compensated exactly equal to inflation, don't do this by definition. One might say TIPS are hedged for inflation but are not a hedge for the inflation of other th...
by dbr
Thu Sep 10, 2020 10:45 am
Forum: Personal Investments
Topic: Meaningful Goals
Replies: 9
Views: 871

Re: Meaningful Goals

You can put $1000 into a CD paying 1% and earn $10 at the end of a year. Does that help at all? A person wanting an income of $100,000 a year from investments with a 1% yield needs to invest $10,000,000, but if that investor could get a yield of 5%, then they would need to invest $2,000,000. Real in...
by dbr
Thu Sep 10, 2020 10:38 am
Forum: Personal Investments
Topic: Bond Allocation - gov't vs. corporate/duration
Replies: 4
Views: 321

Re: Bond Allocation - gov't vs. corporate/duration

The above -- exactly. There are far more choices in bonds than matter to almost anyone. Most investors don't need to worry about these things except at the extremes. I doubt someone happy with CDs would enjoy holding long term corporates. But that is about it.
by dbr
Thu Sep 10, 2020 9:59 am
Forum: Personal Finance (Not Investing)
Topic: Projected inflation rate and equity rate of return
Replies: 27
Views: 1334

Re: Projected inflation rate and equity rate of return

I am already retired and am updating my quicken retirement planner. What would be a good rate to use for future inflation and equity rate of return? I would think maybe given market somewhat overvalued maybe future return should be lowered . I was using 2.5% for inflation and 4% for rate of return ...
by dbr
Thu Sep 10, 2020 9:43 am
Forum: Personal Finance (Not Investing)
Topic: Projected inflation rate and equity rate of return
Replies: 27
Views: 1334

Re: Projected inflation rate and equity rate of return

It would probably be a good idea to try your model with different numbers for those inputs to see how much trouble you might or might not be in if you guess wrong. Keep in mind when using expected returns that you can't expect to get the expected return. Yes, running multiple scenarios is a good wa...
by dbr
Thu Sep 10, 2020 9:32 am
Forum: Personal Finance (Not Investing)
Topic: Projected inflation rate and equity rate of return
Replies: 27
Views: 1334

Re: Projected inflation rate and equity rate of return

I am already retired and am updating my quicken retirement planner. What would be a good rate to use for future inflation and equity rate of return? I would think maybe given market somewhat overvalued maybe future return should be lowered . I was using 2.5% for inflation and 4% for rate of return ...
by dbr
Thu Sep 10, 2020 9:20 am
Forum: Personal Finance (Not Investing)
Topic: Projected inflation rate and equity rate of return
Replies: 27
Views: 1334

Re: Projected inflation rate and equity rate of return

It would probably be a good idea to try your model with different numbers for those inputs to see how much trouble you might or might not be in if you guess wrong. Keep in mind when using expected returns that you can't expect to get the expected return.
by dbr
Wed Sep 09, 2020 5:24 pm
Forum: Personal Investments
Topic: [Have Vanguard LifeStrategy Growth fund - is this OK?]
Replies: 15
Views: 1328

Re: [Have Vanguard LifeStrategy Growth fund - is this OK?]

Funds like this are fine funds, but an investor has other things to do before just picking a fund. Picking funds is the last of several steps starting with objectives -- financial plan -- asset allocation -- asset location -- pick funds. At least one thing a step back, asset allocation, from making ...
by dbr
Wed Sep 09, 2020 2:04 pm
Forum: Personal Investments
Topic: Immediate Annuity Satisfaction or Regrets?
Replies: 66
Views: 4340

Re: Immediate Annuity Satisfaction or Regrets?

Just google: “Why annuities are bad”. Are you (or the criticisms) distinguishing between SPIAs and other types of annuities? They are different critters. RM [/quote] It's a commonplace in this discussion that most annuities are bad for most people most of the time but that SPIAs don't have the flaw...
by dbr
Wed Sep 09, 2020 1:50 pm
Forum: Personal Finance (Not Investing)
Topic: Withdrawal/Selling From Taxable Account (FIFO, HIFO, SpecID or AVG)?
Replies: 23
Views: 1024

Re: Withdrawal/Selling From Taxable Account (FIFO, HIFO, SpecID or AVG)?

If you haven't sold anything you haven't "used" any choice yet. If you do sell using average you can't then change the next time until the whole position is liquidated and, possibly, started over. For covered shares a switch from Average Basis can be done without liquidating the position. The IRS m...
by dbr
Wed Sep 09, 2020 1:47 pm
Forum: Investing - Theory, News & General
Topic: Jane Bryant Quinn, stock allocation before / after retirement
Replies: 40
Views: 6226

Re: Jane Bryant Quinn, stock allocation before / after retirement

I am not surprised that Jane will adopt and promote this model - if you read her book, she is very much into the bucket models and this is a nice adjustment to your initial retirement bucket being more conservative in order to cushion the risk for the first 5-10 years And it does make sense. The st...