Search found 26070 matches

by dbr
Thu Apr 19, 2018 4:54 pm
Forum: Investing - Theory, News & General
Topic: Wellesley January Price Drop? Why?
Replies: 25
Views: 2379

Re: Wellesley January Price Drop? Why?

Wellesley is not an index fund. Why does that matter? It may not be relevant to why Wellesley price declined in January, but it always matters when incorrect information is stated and it be corrected. I assumed the idea is that by holding Wellesley you hire management that does not let things like ...
by dbr
Thu Apr 19, 2018 4:50 pm
Forum: Investing - Help with Personal Investments
Topic: Financial planners [looking for one]
Replies: 12
Views: 780

Re: Financial planners [looking for one]

I think it is a good idea and a good time to get some good financial advice from a fee only financial planner, especially for retirement planning at your age. There are a lot of things that can go into a good financial plan. IMO, the investment part is the easier part. Tax planning, SWR, will my mo...
by dbr
Thu Apr 19, 2018 4:42 pm
Forum: Personal Consumer Issues
Topic: Is Los Angeles a good place long term to live financially?
Replies: 139
Views: 7801

Re: Is Los Angeles a good place long term to live financially?

I would suggest start with the marriage thing and see where that takes the two of you. Financially, sure it can be made to work. It would be much easier on 2 x $100k than on 1 x $100k. The big house is a pipe dream. Maybe your $800k will get you somewhere down the road, not so likely up in the hills...
by dbr
Thu Apr 19, 2018 8:51 am
Forum: Investing - Theory, News & General
Topic: Trinity Study updated to 2018
Replies: 113
Views: 9597

Re: Trinity Study updated to 2018

A disservice is done every time the Trinity study is equated to a retirement income withdrawal strategy. As the latter, it would have to be the worst method. The thought of setting a withdrawal rate, then never looking again at actual outcome, portfolio balance, inflation, etc. is reckless. What is...
by dbr
Thu Apr 19, 2018 8:33 am
Forum: Investing - Help with Personal Investments
Topic: Are you keeping more in cash?
Replies: 27
Views: 3354

Re: Are you keeping more in cash?

Are cd's considered cash? Since the ones I purchased last year at Ally Bank can be redeemed with 150 day penalty. Yes, CDs are cash. No, CDS are not cash. CDs are or are not considered cash depending on who is doing the considering. There are lots of threads on this. The logical answer is that it d...
by dbr
Wed Apr 18, 2018 5:20 pm
Forum: Personal Finance (Not Investing)
Topic: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?
Replies: 116
Views: 7339

Re: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?

My question to the BH community is "why there is so much emphasis on safety without really understanding the basic underlying reasoning as to how and who is providing it? Because safety is an emotional quality. It's no longer an objective discussion. One person's safety is another person's irration...
by dbr
Wed Apr 18, 2018 5:06 pm
Forum: Investing - Help with Personal Investments
Topic: need advice on retired mom's ira account
Replies: 10
Views: 573

Re: need advice on retired mom's ira account

You could look into charitable distributions, donor advised funds, leaving the account to a charity etc. In short give the money away. Otherwise, if that is not in the cards, and this is a tax question you should probably hire a tax accountant to set up some spreadsheets to analyze the total tax cos...
by dbr
Wed Apr 18, 2018 4:59 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds vs. Fixed/Guaranteed Income
Replies: 16
Views: 1428

Re: Bonds vs. Fixed/Guaranteed Income

Hmm, well I was thinking in terms of if I was going to choose just one of them. My thought process was that if a bond could potentially bring a negative return wouldn't you stand a good chance of making out in the long run just by putting it into the thing that will definitely give a fixed 2.52%? I...
by dbr
Wed Apr 18, 2018 4:35 pm
Forum: Investing - Help with Personal Investments
Topic: 401k Administrative Fees
Replies: 6
Views: 476

Re: 401k Administrative Fees

What is a reasonable cost basis for administrative fees? The advisor my work uses for the 401k plan originally was paid commissions. When I first met with him, he recommended some ultra-conservative fund-of-fund with trailing commissions hovering around +2.5%. This was after telling him how I have ...
by dbr
Wed Apr 18, 2018 4:19 pm
Forum: Investing - Help with Personal Investments
Topic: Investing/Planning for long-term cash flow needs
Replies: 6
Views: 563

Re: Investing/Planning for long-term cash flow needs

In general a specific liability should be matched by a specific source of income. That means either a period certain annuity or a ladder of bonds. If you want to approach the problem by using a volatile portfolio with uncertainty as to outcome and makeup the shortfall with "other" funds then you hav...
by dbr
Wed Apr 18, 2018 4:04 pm
Forum: Investing - Help with Personal Investments
Topic: Are you keeping more in cash?
Replies: 27
Views: 3354

Re: Are you keeping more in cash?

I’m a conservative investor in my seventies. In the late 1990’s and early 2000’s, I routinely kept about five percent of my investments in cash, defined as my Vanguard money market fund. I don’t own any bank CD’s, and I count my I Bonds as “bonds.” When the yield on my money market fund dropped to ...
by dbr
Wed Apr 18, 2018 8:24 am
Forum: Personal Finance (Not Investing)
Topic: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?
Replies: 116
Views: 7339

Re: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?

FWIW, I fully retired at 53 (DW was 51 and also fully retired) three years ago. Initial targeted annual WD rate was 3.25%, but due to underspend of our budget and strong stock market performance, our WD rate last year was closer to 2.6%. I remain "very confident" that our retirement funds will last...
by dbr
Wed Apr 18, 2018 7:52 am
Forum: Personal Finance (Not Investing)
Topic: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?
Replies: 116
Views: 7339

Re: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?

How difficult it is to find somebody who did this for 50 years running and is a current BH contributor. Do we have any retirees who retired in 1968 and used 2.5% withdrawal for 50 years? Then again if you were around when inflation did run at 15% or when the DOW index lost 90% if its value in three...
by dbr
Tue Apr 17, 2018 6:47 pm
Forum: Personal Finance (Not Investing)
Topic: For those that re-invest dividends automatically...
Replies: 15
Views: 2213

Re: For those that re-invest dividends automatically...

Dividends are part of return is exactly right. The reason for that is that when we project the future growth of our investments we use estimates for return in which dividends are included by the definition of return. We would not want to count dividends twice by also adding them in as contributions....
by dbr
Tue Apr 17, 2018 6:44 pm
Forum: Personal Finance (Not Investing)
Topic: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?
Replies: 116
Views: 7339

Re: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?

Has anyone yet made a recommendation based on person experience and intuition rather than informed by models and backtests?
by dbr
Tue Apr 17, 2018 6:42 pm
Forum: Personal Finance (Not Investing)
Topic: AMEX Membership Rewards
Replies: 6
Views: 893

Re: AMEX Membership Rewards

I am willing to pay fees on the stable of cards I own firstly for the sign-up bonuses, especially when one can capture the 100,000 point varieties, and secondly for perks or discounts such as are given on certain airline cards etc. I doubt most of us can spend enough to earn back the value of fees j...
by dbr
Tue Apr 17, 2018 6:36 pm
Forum: Personal Finance (Not Investing)
Topic: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?
Replies: 116
Views: 7339

Re: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?

To add a comment, if perspective of experience is what is wanted, experience would say that the larger uncertainties are in areas other than the fate of this investing scheme. What will happen to a person over fifty years of living, even just matters of financial consequence, can be so variable, so ...
by dbr
Tue Apr 17, 2018 6:09 pm
Forum: Investing - Help with Personal Investments
Topic: Diversifying fixed income portfolio
Replies: 2
Views: 268

Re: Diversifying fixed income portfolio

Do we assume the muni funds are national and not state. If state specific I would definitely not have 40% of my portfolio in munis. I guess if national funds my feeling would be more comfort if not all the bonds were munis. I wish I could give you an analytical reason for that but I am not that spif...
by dbr
Tue Apr 17, 2018 5:59 pm
Forum: Personal Finance (Not Investing)
Topic: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?
Replies: 116
Views: 7339

Re: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?

How on earth would you arrive at that assumption for the asset allocation you propose? I don't think that I completely follow your statements. Are you asserting that a 50/50 portfolio cannot keep up with inflation, whether with or without any withdrawals from the portfolio? Are you asserting that w...
by dbr
Tue Apr 17, 2018 3:48 pm
Forum: Personal Finance (Not Investing)
Topic: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?
Replies: 116
Views: 7339

Re: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?

You seem to be extraordinarily naive about inflation. How so? Shouldn't the underlying portfolio's balance increase (over time) in an amount equal to the inflation rate (over time), such that if I were to withdraw $75K plus inflation, the net effect is zero because I would effectively still have a ...
by dbr
Tue Apr 17, 2018 8:51 am
Forum: Investing - Help with Personal Investments
Topic: "Safe" funds for a life insurance proceeds
Replies: 15
Views: 882

Re: "Safe" funds for a life insurance proceeds

It would, of course, be timely to have some discussions ahead of time regarding placement of the money when the beneficiary does get control.
by dbr
Tue Apr 17, 2018 8:50 am
Forum: Investing - Help with Personal Investments
Topic: New to board with Brighthouse Annuity question?
Replies: 9
Views: 597

Re: New to board with Brighthouse Annuity question?

I agree that assessment of an annuity requires detailed expert work. It is essentially a financial/legal opinion.

It is possible one option is a 1035 exchange to a better, meaning less costly, annuity, but even that has to come out of an analysis.
by dbr
Tue Apr 17, 2018 8:48 am
Forum: Personal Finance (Not Investing)
Topic: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?
Replies: 116
Views: 7339

Re: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?

Considering that you can buy an SPIA today that pays out at 4.6% why not distribute less than half that asset across a few insurance companies and leave the rest untouched. Panhead already suggested this and also added the possibility of buying inflation indexed annuities instead. You seem to be ext...
by dbr
Tue Apr 17, 2018 8:35 am
Forum: Investing - Theory, News & General
Topic: buying bonds
Replies: 8
Views: 619

Re: buying bonds

Why do you wish to buy individual bonds rather than simply holding a bond fund? I would ask the same. Unless you have a compelling reason for exactly the face value of the bond to become available exactly on the maturity date there is not much reason to buy a bunch of bonds rather than a bond fund....
by dbr
Mon Apr 16, 2018 5:35 pm
Forum: Investing - Theory, News & General
Topic: Some basic questions about bond index funds
Replies: 23
Views: 1845

Re: Some basic questions about bond index funds

Thanks Taylor. So basically you're saying: no one understands bonds (let alone bond funds) but it's still a good idea to invest in them anyway. Yes, Boglehead advice is to never invest in anything you don't understand except Vanguard low cost diversified mutual funds. That is not a sarcastic commen...
by dbr
Mon Apr 16, 2018 5:32 pm
Forum: Investing - Theory, News & General
Topic: Trinity Study updated to 2018
Replies: 113
Views: 9597

Re: Regular 4% withdrawals can be ridiculous.

dknightd wrote:
Mon Apr 16, 2018 5:31 pm
Taylor Larimore wrote:
Mon Apr 16, 2018 2:01 pm
Limiting withdrawals to 4% is obviously ridiculous when you are as old as I am (94).
For one thing the IRS will not allow it (assuming tax deferred accounts)
There is clearly a misunderstanding here.
by dbr
Mon Apr 16, 2018 4:27 pm
Forum: Investing - Help with Personal Investments
Topic: State income tax impact on portfolio
Replies: 1
Views: 200

Re: State income tax impact on portfolio

It is impossible to make an accurate computation of after tax performance without effectively computing your personal tax return in all its glory for each and every future year. Someone was asking about this on another thread in the last day or two and I am not sure if there was an answer for an app...
by dbr
Mon Apr 16, 2018 4:04 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review - Replacing Vanguard Target Retirement & Extra Cash
Replies: 9
Views: 915

Re: Portfolio Review - Replacing Vanguard Target Retirement & Extra Cash

The simple answer to the excess cash is you can get more return on it by investing it in the stock market. If you don't want to take that risk, then it probably isn't helpful to worry about it. The point of this comment is that risk and return are properties of your portfolio as a whole and that is ...
by dbr
Mon Apr 16, 2018 3:52 pm
Forum: Personal Consumer Issues
Topic: BH travel tips?
Replies: 119
Views: 6079

Re: BH travel tips?

So you save 10 minutes at the airport by not having to wait for a checked bag but then have to go shopping for basic necessities? Similar to the "Don't want to spend time doing laundry" thing I mentioned above - seems like a trade-off (and one that might favor a checked bag to many people). Well, I...
by dbr
Mon Apr 16, 2018 2:22 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds - Am I missing something
Replies: 89
Views: 6778

Re: Bonds - Am I missing something

Bond funds will help put your portfolio asset allocation on the so-called Efficient Frontier. Livesoft, can you kindly post some links on what you mean by the above? I am trying to find links to diverting funds to bonds but navigating the forums to glean information is a bit tricky. https://www.goo...
by dbr
Mon Apr 16, 2018 2:12 pm
Forum: Investing - Help with Personal Investments
Topic: What to do about withdrawal this year if market doesn't go up?
Replies: 32
Views: 2815

Re: What to do about withdrawal this year if market doesn't go up?

Isn't the theory that it doesn't matter what the market does, you just simply take out your 4% per year (or whatever you've decided as your SWR), and that 4% will be a bigger or smaller amount based on what the market did? Typically, when people talk about a safe withdrawal rate strategy, they are ...
by dbr
Mon Apr 16, 2018 1:42 pm
Forum: Personal Consumer Issues
Topic: BH travel tips?
Replies: 119
Views: 6079

Re: BH travel tips?

One way we have reduced travel stress is to rigorously avoid tight connections. We'd rather spend some extra time relaxing between flights, often at a nice lounge, free due to travel perks of some charge cards, but even if just in a regular waiting area at airports without "lounges". And at times w...
by dbr
Mon Apr 16, 2018 12:45 pm
Forum: Investing - Help with Personal Investments
Topic: What to do about withdrawal this year if market doesn't go up?
Replies: 32
Views: 2815

Re: What to do about withdrawal this year if market doesn't go up?

I'm new to making retirement withdrawals from my 401k. This year is looking like 2015, where the market only went up 1%. Unlike others on the board, I need to withdraw some from my 401k as my pension is only 6000 a year and I need 50k. I see three options, first withdrawal from principle, 2nd pull ...
by dbr
Mon Apr 16, 2018 12:40 pm
Forum: Personal Consumer Issues
Topic: Slow internet speed question
Replies: 2
Views: 270

Re: Slow internet speed question

by dbr
Mon Apr 16, 2018 12:35 pm
Forum: Personal Consumer Issues
Topic: How do you determine what internet speed you need?
Replies: 32
Views: 1060

Re: How do you determine what internet speed you need?

VZ FIOS was really slow even for normal surfing at 75/75 so I had to go with 150/150. Eh, something else was wrong if you were just browsing websites and had problems at 75/75, it wasn't the speed of your internet service. That could be an example of a router problem. What is the actual tested spee...
by dbr
Mon Apr 16, 2018 11:58 am
Forum: Investing - Help with Personal Investments
Topic: Help with CD ladder strategy for emergency fund
Replies: 36
Views: 2324

Re: Help with CD ladder strategy for emergency fund

One thing you may want to consider is to put part of you EF into I Bonds that can be purchased through Treasury Direct. You can purchase up to 10K per social security number. The money is tied up for one year, but after 12 months they are liquid. If you cash them in before year 5, you do loose 3 mo...
by dbr
Mon Apr 16, 2018 11:55 am
Forum: Personal Consumer Issues
Topic: How do you determine what internet speed you need?
Replies: 32
Views: 1060

Re: How do you determine what internet speed you need?

What you buy and what you get are two different things. Run a speed test on your devices. If you are wireless how well your router works is important. We had one computer that was just terrible until got we a router repeater in place in exactly the right location in the house.
by dbr
Mon Apr 16, 2018 11:51 am
Forum: Investing - Theory, News & General
Topic: Higher bond allocations with riskier bonds
Replies: 10
Views: 522

Re: Higher bond allocations with riskier bonds

Does anyone choose this type of allocation? I know both portfolios ended up performing similarly so there might not be a compelling reason to go this route. But at the same time, is there a good reason not to? Sure people do things like this all the time. There was a recent thread with some efficie...
by dbr
Mon Apr 16, 2018 10:43 am
Forum: Investing - Theory, News & General
Topic: [Book: Living off Your Money, by M. McClung (Prime Harvesting)]
Replies: 417
Views: 78736

Re: [Book: Living off Your Money, by M. McClung (Prime Harvesting)]

I am curious if anyone has had the time to review and think about the the subject book. Have you adjusted your retirement planning based on the information provided in this book. I was actually the OP initiating this thread, and expressed a lot of interest for this book, which is well researched, p...
by dbr
Mon Apr 16, 2018 10:38 am
Forum: Investing - Help with Personal Investments
Topic: How 'bad' are American Funds through UBS?
Replies: 12
Views: 632

Re: How 'bad' are American Funds through UBS?

A lot of times loads are waived when investing through advisors or even just in a number of other circumstances. Many times not. If not paying loads, in tax-advantaged accounts, it's not bad (other than the advisor fee; I mean the investment products themselves). These have been pretty stable, bori...
by dbr
Mon Apr 16, 2018 10:28 am
Forum: Investing - Help with Personal Investments
Topic: How 'bad' are American Funds through UBS?
Replies: 12
Views: 632

Re: How 'bad' are American Funds through UBS?

Let it go. Not only haven't they asked for your help, they actively don't want it. This is probably true. About American Funds in general, the funds are well run and the expense ratios are significant but not absolutely outrageous. I think the one egregious issue with AF is having front end loads. ...
by dbr
Mon Apr 16, 2018 10:07 am
Forum: Investing - Help with Personal Investments
Topic: What advantages do a personalized portfolio have over a target date fund, in your opinion?
Replies: 49
Views: 2753

Re: What advantages do a personalized portfolio have over a target date fund, in your opinion?

I'm switching my non-401k assets (best option in the 401k is Vanguard's TD2040 Trust II with ER of 0.08%) to mimic the Target Date fund for expense ratio savings. I had been using Target Date funds for simplicity, but by switching our assets to the underlying Admiral share equivalents (3 fund portf...
by dbr
Mon Apr 16, 2018 9:59 am
Forum: Investing - Help with Personal Investments
Topic: 401k withdrawal question
Replies: 6
Views: 350

Re: 401k withdrawal question

A little research on Google suggests that a Plan can deny you withdrawal of your money until you are retired, age 55, or otherwise no longer working for the company, etc. Some plans allow for hardship withdrawals. These are all Plan rules and not prevented by IRS rules. You can always continue to ar...
by dbr
Mon Apr 16, 2018 9:53 am
Forum: Personal Finance (Not Investing)
Topic: Is capital gains paid at the state level as well?
Replies: 8
Views: 375

Re: Is capital gains paid at the state level as well?

The answer lies in the instructions for preparing your state income tax return. This is the answer. Or, someone who knows the NY tax law can say yes or no. People have already pointed out that many states start with AGI which includes capital gains. Whether or not CGs will get a preferential tax ra...
by dbr
Mon Apr 16, 2018 9:44 am
Forum: Investing - Help with Personal Investments
Topic: 401k withdrawal question
Replies: 6
Views: 350

Re: 401k withdrawal question

As far as I know you can withdraw with a tax penalty at any time, but maybe there is something I don't understand.

When you say "looking to" did you go online at your 401k and try to make a withdrawal and you can't or they tell you they won't do it? Who is forcing you to take a loan?
by dbr
Mon Apr 16, 2018 9:39 am
Forum: Investing - Help with Personal Investments
Topic: What advantages do a personalized portfolio have over a target date fund, in your opinion?
Replies: 49
Views: 2753

Re: What advantages do a personalized portfolio have over a target date fund, in your opinion?

One could probably summarize most of the differences as being personal meaning convenience and behavioral. As such these things are really an individual preference and not a general recommendation one way or the other. I would comment regarding "beginners" that a TD fund or using a TD fund as part o...
by dbr
Mon Apr 16, 2018 9:34 am
Forum: Investing - Help with Personal Investments
Topic: What to do about withdrawal this year if market doesn't go up?
Replies: 32
Views: 2815

Re: What to do about withdrawal this year if market doesn't go up?

Isn't the theory that it doesn't matter what the market does, you just simply take out your 4% per year (or whatever you've decided as your SWR), and that 4% will be a bigger or smaller amount based on what the market did? More than that the theory is that a person saved all that money in order to ...
by dbr
Mon Apr 16, 2018 9:26 am
Forum: Investing - Theory, News & General
Topic: Trinity Study updated to 2018
Replies: 113
Views: 9597

Re: Trinity Study updated to 2018

In discussing withdrawal schemes it might be helpful to organize the hierarchy in order of what matters the most to what matters the least: 1.a. How lucky you are that some really bad things don't happen to you. 1.b. How lucky you are that some pretty bad things don't happen to you. 2.a. How much mo...
by dbr
Sun Apr 15, 2018 4:45 pm
Forum: Investing - Help with Personal Investments
Topic: "guaranteed" 6% return vs index fund investing
Replies: 30
Views: 2742

Re: "guaranteed" 6% return vs index fund investing

dbr: you may be picking up that I have limited experience in these matters or that I am inarticulate (or both!) Let me try again: 1. The business has an existing variable rate loan from a bank and is considering fixing the loan rate via the same lender. 2. As an alternative to #1, I understood that...
by dbr
Sun Apr 15, 2018 4:18 pm
Forum: Investing - Help with Personal Investments
Topic: "guaranteed" 6% return vs index fund investing
Replies: 30
Views: 2742

Re: "guaranteed" 6% return vs index fund investing

It isn't even clear if this is a loan to a business or putting up money to buy land. dbr: the land was purchased a few years ago, and at that time the partners decided to borrow to fund the purchase rather than investing more of their own capital. The loan has a variable rate, and the recent discus...