Search found 35275 matches

by dbr
Mon Apr 12, 2021 7:07 pm
Forum: Personal Investments
Topic: Fidelity pushing deferred annuity
Replies: 12
Views: 939

Re: Fidelity pushing deferred annuity

I just retired and have company 401k with Fidelity in target date fund. Want to rollover to IRA following Boglehead three fund portfolio. I thought it would be easier to stay with Fidelity, so I identified Fidelity Total Market Index Fund, Fidelity Total International Index Fund, Fidelity U.S. Bond...
by dbr
Mon Apr 12, 2021 4:35 pm
Forum: Personal Investments
Topic: Withdrawing from 401k/Roth 401k
Replies: 2
Views: 245

Re: Withdrawing from 401k/Roth 401k

Two suggestions: 1. Call your plan administrator and ask why you don't see separate accountings. It is possible you haven't drilled down into your online account far enough or it may be something they sent you is just a short summary letter. My 401k has some odd classes of contributions such as pre ...
by dbr
Mon Apr 12, 2021 4:29 pm
Forum: Investing - Theory, News & General
Topic: Risk/Reward of Private Investments
Replies: 12
Views: 743

Re: Risk/Reward of Private Investments

How much of these investments, if any, are simply about more risk? Would one do just as well funneling as much cash into VTWAX as possible with cheap leverage? Or do these kinds of investments tend to do better for investors because they're closer to the investment, higher priority on any payouts, ...
by dbr
Mon Apr 12, 2021 1:02 pm
Forum: Personal Investments
Topic: Noob - 550k to invest
Replies: 10
Views: 1636

Re: Noob - 550k to invest

ok so cost basis looks accurate, based on the document EJ gave me. How is it handled if a stock is lower now than on cost basis date? If the cost basis is accurate for your interest in the assets, then you can sell at a loss and the loss can be used in a complicated way to offset income on your tax...
by dbr
Mon Apr 12, 2021 12:57 pm
Forum: Investing - Theory, News & General
Topic: 3 Fund Taxable Portfolio with LTT
Replies: 6
Views: 463

Re: 3 Fund Taxable Portfolio with LTT

if LTTs (VGLT for example) are more negatively correlated to Stocks than BND, but with a potential to have lower draw downs and higher return, why not choose VGLT all the time over BND? Well, that is exactly an argument people do make, or a preference that people choose. The other side of that is t...
by dbr
Mon Apr 12, 2021 9:55 am
Forum: Personal Investments
Topic: Part-Time FIRE number and Financial Plan/Portfolio Review Question.
Replies: 5
Views: 699

Re: Part-Time FIRE number and Financial Plan/Portfolio Review Question.

1. I used the Morningstar X-ray to see assess my small and mid cap tilt. What do you think is the most effective small and mid cap tilt. Value vs Core vs Growth. That depends on what you mean by effective. Theory says that the higher the allocation to small and value the higher the expected return....
by dbr
Mon Apr 12, 2021 9:31 am
Forum: Investing - Theory, News & General
Topic: 3 Fund Taxable Portfolio with LTT
Replies: 6
Views: 463

Re: 3 Fund Taxable Portfolio with LTT

As a generalization the best diversifier for a stock holding is long term Treasuries. This is well known. Note that when you do that the risk and return will be a higher selection than, for example, a high bond portfolio, but you get a good trade off of return for risk. The portfolio theory to suppo...
by dbr
Mon Apr 12, 2021 8:54 am
Forum: Personal Investments
Topic: CDs vs. Bonds in today's world
Replies: 15
Views: 1119

Re: CDs vs. Bonds in today's world

Total bond funds are "relatively safe." You have also learned that CDs are not safe because the interest paid can't be counted on. From the definition that investment risk is measured by the standard deviation of annual returns the risk in CDs is around +/-2% which is how much the return c...
by dbr
Mon Apr 12, 2021 8:39 am
Forum: Personal Investments
Topic: Tax efficient withdrawal strategy
Replies: 5
Views: 591

Re: Tax efficient withdrawal strategy

It certainly depends on your specific tax situation, meaning your income or your proposed income, whether you are filing single or married, what exemptions, deductions, and credits you have, including possible tax losses and so on. Even sort of obvious advice not to take distributions from tax defer...
by dbr
Sun Apr 11, 2021 3:11 pm
Forum: Personal Investments
Topic: Taking over in-law's retirement accounts, advice on strategy
Replies: 10
Views: 1313

Re: Taking over in-law's retirement accounts, advice on strategy

The missing information is how much they want to spend. A general model for planning for this sort of thing, one of several of the same nature, is www.firecalc.com I suggest working your way through that sort of model to get a feel for what their situation is. The model accepts their assets, planned...
by dbr
Sun Apr 11, 2021 3:00 pm
Forum: Personal Investments
Topic: Using different withdrawal amounts throughout retirement
Replies: 4
Views: 644

Re: Using different withdrawal amounts throughout retirement

If you look in a model such as www.firecalc.com one of the input pages is called "other income/spending." If you use the entries creatively there are five possible entries you can make where either an income stream starts or extra spending starts. Those entries are there for one thing to a...
by dbr
Sun Apr 11, 2021 1:11 pm
Forum: Personal Investments
Topic: question about opening a TIAA Brokerage account?
Replies: 17
Views: 937

Re: question about opening a TIAA Brokerage account?

So I was trying to make sense of this page with regards to ETFs: https://www.tiaa.org/public/brokerage-account-fees It says (1) Equity and Transaction Fee ETF trades - $0, and (2) NTF eligible ETFs will have a $0.00 commission, regardless of order size or holding period. Does (1) mean that if the E...
by dbr
Sun Apr 11, 2021 12:35 pm
Forum: Personal Investments
Topic: question about opening a TIAA Brokerage account?
Replies: 17
Views: 937

Re: question about opening a TIAA Brokerage account?

According to this neither Vanguard nor Fidelity mutual funds are NTF at TIAA Brokerage (follow the *): https://www.tiaa.org/public/pdf/MF_families.pdf I couldn't find their list of NTF ETFs (non-transaction fee exchange traded funds) but if there is a commission it would be less than for mutual fund...
by dbr
Sun Apr 11, 2021 11:18 am
Forum: Investing - Theory, News & General
Topic: Buying a range of bond maturities?
Replies: 11
Views: 809

Re: Buying a range of bond maturities?

Yes there will be a difference. Interest rates at various maturites do not go up by a fixed % or a fixed ratio at each maturity term. Sometimes the shorter stuff goes up a lot more than longer or just the reverserve. Could another way to think about this be that if the yield curve maintained a cons...
by dbr
Sun Apr 11, 2021 10:03 am
Forum: Personal Investments
Topic: VWAHX
Replies: 7
Views: 618

Re: VWAHX

Either fund is reasonable as a core bond fund in an appropriate account, but the increased risk means that there isn't a clear benefit, so I don't normally recommend them as core holdings. A portfolio with the same risk level as a three-fund portfolio, but using higher-risk bonds, needs more bonds....
by dbr
Sun Apr 11, 2021 9:55 am
Forum: Personal Investments
Topic: Target date funds in retirement vs bucket strategy
Replies: 5
Views: 555

Re: Target date funds in retirement vs bucket strategy

https://www.kitces.com/blog/managing-sequence-of-return-risk-with-bucket-strategies-vs-a-total-return-rebalancing-approach/ If there’s one fundamental takeaway that’s been drawn from the research on safe withdrawal rates, it’s the fact that market volatility really matters during the retiree withdr...
by dbr
Sun Apr 11, 2021 9:43 am
Forum: Personal Investments
Topic: Target date funds in retirement vs bucket strategy
Replies: 5
Views: 555

Re: Target date funds in retirement vs bucket strategy

A dodge to get around this is to sell TR fund in a tax deferred account and hold cash there. As you sell TR funds in taxable for income you can replace that TR holding in your tax deferred account by using the cash to buy back fund shares. There are no tax costs to do this in a tax deferred account.
by dbr
Sun Apr 11, 2021 9:41 am
Forum: Personal Investments
Topic: Target date funds in retirement vs bucket strategy
Replies: 5
Views: 555

Re: Target date funds in retirement vs bucket strategy

My investable assets are in target date funds in both my retirement and taxable accounts with 45/55 allocation stocks/bonds in each. Does this method of investing conflict with using a bucket strategy as my stocks and bonds are commingled in a single target date fund obligating me to sell stocks ea...
by dbr
Sun Apr 11, 2021 9:15 am
Forum: Personal Finance (Not Investing)
Topic: Can I carry over large loss from a K-1?
Replies: 2
Views: 312

Re: Can I carry over large loss from a K-1?

Turbotax creates a capital loss carryover worksheet. Your 2019 tax output (not the tax filing documents but the file of all the TT documents and worksheets) has that file and it is, of course, saved in the tax file (file type .tax2019). If when you open TT for 2020 you have it load the previous year...
by dbr
Sun Apr 11, 2021 9:01 am
Forum: Investing - Theory, News & General
Topic: Real Estate Risk: What Do You Call This Kind?
Replies: 12
Views: 1193

Re: Real Estate Risk: What Do You Call This Kind?

Possibly "opportunity cost" I think that would be it. And I agree it isn't a risk in the normal sense of the word in finance and investing, I don't think. In any case there is no way to calculate the value when applied to a sector such as residential housing and an area, such as Los Angel...
by dbr
Sun Apr 11, 2021 8:53 am
Forum: Investing - Theory, News & General
Topic: Buying a range of bond maturities?
Replies: 11
Views: 809

Re: Buying a range of bond maturities?

Yes, the key is the yield curve which does not maintain constant shape. That establishes that there is a difference. To determine what will be the difference requires forecasting the yield curve, which is not a practical possibility. You then have to convolute* the changing yield with the modified d...
by dbr
Sun Apr 11, 2021 8:43 am
Forum: Investing - Theory, News & General
Topic: Real Estate Risk: What Do You Call This Kind?
Replies: 12
Views: 1193

Re: Real Estate Risk: What Do You Call This Kind?

I am not sure if there is as technical term. The nature of the risk is that of being out of the market and not owning the asset when the price went up. Naturally risk goes both ways. Prices could have gone down while you were out of the market. As above it is also inflation in a sort of general sens...
by dbr
Sun Apr 11, 2021 8:35 am
Forum: Investing - Theory, News & General
Topic: An alternative to bonds
Replies: 10
Views: 1772

Re: An alternative to bonds

Has anyone heard of HNDL? It's an EDF of EDFs and pays a distribution (not dividend) every month. Right now its paying 7% while the investment has gone unchanged. Here's an article that explains it. https://www.investopedia.com/investing/etf-designed-retirees/?utm_campaign=quote-yahoo&utm_sourc...
by dbr
Sun Apr 11, 2021 8:24 am
Forum: Personal Investments
Topic: US Equity Allocation Strategy
Replies: 4
Views: 407

Re: US Equity Allocation Strategy

Picking funds isn't a strategy. The strategy that is associated with this is factor investing, specifically tilting to size and value factors as suggested by the Fama-French model of investment returns. You should read on that model. If you are seriously interested in trying to gain something this w...
by dbr
Sat Apr 10, 2021 4:20 pm
Forum: Personal Investments
Topic: Investment Allocation: Unpredictable Income
Replies: 16
Views: 941

Re: Investment Allocation: Unpredictable Income

Thanks. First off, the goal is to never touch the principal, only the interest. I don't want it to be turned on/off, I want it to be always on as a source of predictable income that is always there as a baseline for living. And when years are better, just have extra, as opposed to what you are sayi...
by dbr
Sat Apr 10, 2021 4:07 pm
Forum: Personal Investments
Topic: Investment Allocation: Unpredictable Income
Replies: 16
Views: 941

Re: Investment Allocation: Unpredictable Income

In any case dividend income is not constant both quarter to quarter and certainly not over extended times. Also yield is not the income. Yield for a period is the income for that period divided by the current price. A standardized report of yield is the SEC yield which is calculated by certain rules...
by dbr
Sat Apr 10, 2021 3:15 pm
Forum: Personal Investments
Topic: AA for someone 2 years from retirement
Replies: 47
Views: 4741

Re: AA for someone 2 years from retirement

well that is why I proposed a 3% withdrawal rate. I'm acknowledging that if I stay at 3% I am probably very likely to be fine. That will certainly not make me rich! :) That's ok, I am learning what my options are and how much I can expect to remove each year. Thanks again! It will make you rich. Th...
by dbr
Sat Apr 10, 2021 3:06 pm
Forum: Personal Investments
Topic: Investment Allocation: Unpredictable Income
Replies: 16
Views: 941

Re: Investment Allocation: Unpredictable Income

My objective is to create a consistent passive source of income, that is constant regardless of outside forces. In simple, my starting income will be from Vanguard, and anything outside will be the extra, vs the opposite of what you mentioned. Keep in mind that if your source of income is at your w...
by dbr
Sat Apr 10, 2021 3:00 pm
Forum: Personal Investments
Topic: Investment Allocation: Unpredictable Income
Replies: 16
Views: 941

Re: Investment Allocation: Unpredictable Income

You don't need to tether yourself to investment yield to be able to save during fat times and consume during lean times. Buy an appropriate asset allocation of given risk and return and add to it when your have excess income and draw from it when you have need. I'm not sure what the analysis is for ...
by dbr
Sat Apr 10, 2021 2:19 pm
Forum: Personal Finance (Not Investing)
Topic: Withdrawal Frequency in Retirement
Replies: 22
Views: 1720

Re: Withdrawal Frequency in Retirement

Do people who are retired keep that same 10-15 years spending in fixed income the whole way. For example would you do that if you started that way at age 60 but now you are 80, of if you are 90? How does that work? I'm curious because I don't think that way and instead just stick to an allocation ta...
by dbr
Sat Apr 10, 2021 2:14 pm
Forum: Personal Investments
Topic: How to understand AA with Pension and SS ahead
Replies: 6
Views: 729

Re: How to understand AA with Pension and SS ahead

The general thinking is that income streams are income streams and not investments and are not contemplated as if they were bonds. However the presence of income streams affects your need, ability, and willingness to take risk in your stock and bond portfolio, that is your asset allocation. What the...
by dbr
Sat Apr 10, 2021 2:07 pm
Forum: Personal Investments
Topic: [Vanguard Admiral Shares..or not? See my portfolio]
Replies: 7
Views: 974

Re: [Vanguard Admiral Shares..or not? See my portfolio]

Interesting. What If I exchange all of my target date fund for equal split of shares of VTSAX, VTIAX? Or is that more hustle for little extra profit? It doesn't make enough difference to bother one way or the other. But remember TR funds are not just stocks. Your fund is 10% bonds and will eventual...
by dbr
Sat Apr 10, 2021 1:58 pm
Forum: Personal Investments
Topic: AA for someone 2 years from retirement
Replies: 47
Views: 4741

Re: AA for someone 2 years from retirement

Thank you, yes, I am looking at this "short term" so to speak Retirement is not a short term proposition. By and large your asset allocation would not change from years before retirement through years after retirement, possibly excepting a set aside for some special consideration. Current...
by dbr
Sat Apr 10, 2021 11:55 am
Forum: Personal Investments
Topic: Simplifying portfolio
Replies: 9
Views: 1305

Re: Simplifying portfolio

Besides the small tax implications, is there anything wrong with the above recommendation? Would anyone else want to chime in? It would be what I would do. If you want to find a mistake in this somewhere it would be in taking over someone else's investments, which has the potential of eventually ho...
by dbr
Sat Apr 10, 2021 11:45 am
Forum: Personal Investments
Topic: Protect savings from imminent inflation?
Replies: 27
Views: 2480

Re: Protect savings from imminent inflation?

Dandy wrote: Sat Apr 10, 2021 11:30 am A decent equity allocation, a decent allocation to inflation protected bonds, and delaying collecting SS as long as you can.
As practical advice that is pretty good.
by dbr
Sat Apr 10, 2021 11:28 am
Forum: Personal Investments
Topic: Looking for a well-diversified portfolio of 100% stocks
Replies: 14
Views: 1121

Re: Looking for a well-diversified portfolio of 100% stocks

5) I think virtually everyone would agree that Total Stock, Total International, Total World, S&P 500 index funds, and many others are "diversified." And that a fund or ETF that invests only in technology stocks is not. Where long arguments come in involve the question of whether Tota...
by dbr
Sat Apr 10, 2021 11:21 am
Forum: Personal Investments
Topic: "Escrow" held by POA for dad's taxes?
Replies: 15
Views: 809

Re: "Escrow" held by POA for dad's taxes?

My concerns: if dad dies before filing of 2020 (or other years going forward) taxes, I will be unable to use his accounts to pay the IRS. Getting the 50% share for the IRS payments from my sister will be difficult. A tax payment made to his IRS account now is effectively a savings account against a...
by dbr
Sat Apr 10, 2021 11:10 am
Forum: Personal Investments
Topic: "Escrow" held by POA for dad's taxes?
Replies: 15
Views: 809

Re: "Escrow" held by POA for dad's taxes?

tadamsmar wrote: Sat Apr 10, 2021 11:07 am Did you take that RMD without doing federal tax withholding?

Where is the worrisome tax bill coming from?
Of course. Withholding the expected tax would have been obvious :oops:
by dbr
Sat Apr 10, 2021 11:09 am
Forum: Personal Investments
Topic: Financial advisor help
Replies: 22
Views: 2094

Re: Financial advisor help

Just note that tax strategies involving setting up LLC's, businesses of different kind and advice on real estate investment are a whole different thing from the rest of your list. Just expecting to pay someone to take over your lifetime financial affairs is unrealistic. Finding advice on ordinary st...
by dbr
Sat Apr 10, 2021 10:58 am
Forum: Personal Investments
Topic: "Escrow" held by POA for dad's taxes?
Replies: 15
Views: 809

Re: "Escrow" held by POA for dad's taxes?

My concerns: if dad dies before filing of 2020 (or other years going forward) taxes, I will be unable to use his accounts to pay the IRS. Getting the 50% share for the IRS payments from my sister will be difficult. A tax payment made to his IRS account now is effectively a savings account against a...
by dbr
Sat Apr 10, 2021 10:48 am
Forum: Personal Investments
Topic: Protect savings from imminent inflation?
Replies: 27
Views: 2480

Re: Protect savings from imminent inflation?

I used to keep a 1 month supply of Toilet paper. Now I keep 6 months. I'm not sure what else to do. Perhaps spend your savings now? Actually buying real assets now might be helpful. A problem is that most real assets involve maintenance costs and risks. It could be owning houses or putting everythi...
by dbr
Sat Apr 10, 2021 10:39 am
Forum: Personal Investments
Topic: Looking for a well-diversified portfolio of 100% stocks
Replies: 14
Views: 1121

Re: Looking for a well-diversified portfolio of 100% stocks

Yep, the obvious is as suggested in the replies above. I agree that adding an allocation to international stocks makes common sense. You may be confused by language which suggests that portfolios concentrated in various factors such as small and value stocks are "more diversified." This is...
by dbr
Sat Apr 10, 2021 10:28 am
Forum: Personal Investments
Topic: Alternative Investments That Offer Immediate + Scalable Cash Flow
Replies: 13
Views: 891

Re: Alternative Investments That Offer Immediate + Scalable Cash Flow

What about just buying more VTSAX in your brokerage account? It's tax efficient, low cost, completely passive and produces scalable cash flow. It includes real estate if that is really important to you. You may accumulate enough to buy into the real estate market later if you still want to do that....
by dbr
Sat Apr 10, 2021 10:28 am
Forum: Personal Investments
Topic: Alternative Investments That Offer Immediate + Scalable Cash Flow
Replies: 13
Views: 891

Re: Alternative Investments That Offer Immediate + Scalable Cash Flow

What problem exactly are you trying to solve that requires alternative investments with that cash flow rather than saving money in stocks and bonds and eventually having income from Social Security, pensions, and annuities? I'm not sure I understand your comment about wanting "immediate and sca...
by dbr
Sat Apr 10, 2021 10:21 am
Forum: Personal Investments
Topic: Protect savings from imminent inflation?
Replies: 27
Views: 2480

Re: Protect savings from imminent inflation?

There are simple answers to this question and complicated and ambiguous answers. If you think CPI is a measure of the inflation you care about and your only objective is to eliminate inflation risk, then you can invest all your assets in TIPS or I bonds. A possible alternative would be to buy a CPI ...
by dbr
Sat Apr 10, 2021 10:11 am
Forum: Personal Finance (Not Investing)
Topic: Withdrawal Frequency in Retirement
Replies: 22
Views: 1720

Re: Withdrawal Frequency in Retirement

It wasn't clear to me whether OP understood the general order of withdrawal from different types of accounts. To minimize tax drag, if Roth conversions are being made, the Roth conversions should take up as much of the tax bracket as possible, and living expenses and taxes on the conversion should ...
by dbr
Sat Apr 10, 2021 9:06 am
Forum: Personal Investments
Topic: VWAHX
Replies: 7
Views: 618

Re: VWAHX

Whether or not an investment is worth the risk depends on your objectives in holding the investment. That also cannot be decided except in the context of everything else you are invested in. If you want a formal financial measure of "worth it," which may or may not be relevant, you can com...
by dbr
Sat Apr 10, 2021 8:50 am
Forum: Personal Investments
Topic: Remind me how to stick to Strategic asset allocation
Replies: 11
Views: 834

Re: Remind me how to stick to Strategic asset allocation

I’m considering +- 5% bands but worry about behavioural bias implication, bogle didn’t seem to say anything about SAA bands What behavioral bias implications? Bands are a highly effective approach to maintaining an asset allocation. This is the same as having and following an IPS. Also Mr. Bogle is...
by dbr
Sat Apr 10, 2021 8:42 am
Forum: Personal Finance (Not Investing)
Topic: Withdrawal Frequency in Retirement
Replies: 22
Views: 1720

Re: Withdrawal Frequency in Retirement

Just about any pattern or lack of pattern in withdrawing can be completely possible and practical. There isn't much that would not just be common sense. The actual practice depends a lot on how and where your assets are arrayed. The actual practice also recognizes that spending is not likely to be a...
by dbr
Sat Apr 10, 2021 8:20 am
Forum: Personal Finance (Not Investing)
Topic: Do budgets work?
Replies: 114
Views: 4362

Re: Do budgets work?

Budgets can work, but I suspect the likelihood of being successful is greatest when one is young and can learn and least when hardened by years of wrong practice. Within family and close friends I have seen both. I have also seen people save themselves from bad habits, such as cocaine and gambling. ...