Search found 27385 matches

by dbr
Wed Jan 16, 2019 10:42 am
Forum: Investing - Help with Personal Investments
Topic: Bond Allocation
Replies: 11
Views: 700

Re: Bond Allocation

In general messing around with which bonds you hold is less useful than adjusting the stock/bond allocation to control overall risk and return of the portfolio. This is especially true when what you are messing around with is only 20% of your portfolio. It is even more especially true when the bond ...
by dbr
Wed Jan 16, 2019 10:21 am
Forum: Investing - Theory, News & General
Topic: Any thoughts on the role of Gold in your portfolio?
Replies: 74
Views: 4093

Re: Any thoughts on the role of Gold in your portfolio?

To fully answer the OP, the catastrophe gold buyers are preparing for is the possibility of the federal reserve dropping interest rates to 0 again if the US has another big recession like 2008. In that case the gold holding would have to be a major part of the portfolio. 5% in gold is not going to ...
by dbr
Wed Jan 16, 2019 10:05 am
Forum: Investing - Help with Personal Investments
Topic: 100% in VTSAX - Is it crazy???
Replies: 46
Views: 3196

Re: 100% in VTSAX - Is it crazy???

A scheme to think through that problem is need, ability, and willingness to take risk. The concept is discussed in some of Larry Swedroe's books. In the end it is a matter of applying judgement and preference to what you want to do. In your case your plan is not necessarily crazy. You just have to l...
by dbr
Wed Jan 16, 2019 12:45 am
Forum: Investing - Theory, News & General
Topic: When/why have you needed customer service from Fido, VG, Schwab etc.?
Replies: 30
Views: 1348

Re: When/why have you needed customer service from Fido, VG, Schwab etc.?

I can never ever remember having to go to an office to have an interaction with a fund company since on-line investment came to exist. I do remember old days when you might walk through the door of a brokers office after going to your safe deposit box at the bank to retrieve paper shares which you w...
by dbr
Tue Jan 15, 2019 9:45 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Funds, Bond Ladders, and Interest-Only Retirement
Replies: 5
Views: 650

Re: Bond Funds, Bond Ladders, and Interest-Only Retirement

Interest rate risk does not mean the same thing for an indefinite holding as it does for a holding that is intended to be liquidated at some time. If a person is going to need to liquidate the bond fund holding at a specific time they could find themselves cashing in when the price is somewhat depre...
by dbr
Tue Jan 15, 2019 7:33 pm
Forum: Personal Consumer Issues
Topic: School staff threatened to call social worker
Replies: 54
Views: 2691

Re: School staff threatened to call social worker

We are planning a trip back to China that would require 9 days of absence from my daughter’s school ( kindergarten ). I emailed to school to ask for permission and found out that school can only approve 6 days of excused absence . We plan to use 3 days of unexcused days and therefore will use up 5 ...
by dbr
Tue Jan 15, 2019 7:31 pm
Forum: Personal Finance (Not Investing)
Topic: My Withdrawal Strategy - Poke holes in it
Replies: 13
Views: 1306

Re: My Withdrawal Strategy - Poke holes in it

If you really mean to take sometimes more and sometimes less but never more than 4% of initial portfolio value and not adjusted for inflation, then that is probably as good a starting point as any. Over time things always happen that change what we decide to do. One concern is that I think you are u...
by dbr
Tue Jan 15, 2019 7:13 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Funds, Bond Ladders, and Interest-Only Retirement
Replies: 5
Views: 650

Re: Bond Funds, Bond Ladders, and Interest-Only Retirement

The crux of the issue is how important is it to them to maintain the value of their holdings? As it stands no matter what nuances of bond investments they engage in a 50/50 allocation of stocks and bonds will fluctuate considerably in value under any algorithm for determining what relatively low rat...
by dbr
Tue Jan 15, 2019 6:50 pm
Forum: Personal Consumer Issues
Topic: School staff threatened to call social worker
Replies: 54
Views: 2691

Re: School staff threatened to call social worker

Here is more detail from my local district. Essentially it is a legal process with possible court appearance. The Social Work issue has to do with child neglect, involvement of child protection, and possible removal of the child from the home. I am still trying to find information on how to establis...
by dbr
Tue Jan 15, 2019 6:37 pm
Forum: Personal Consumer Issues
Topic: School staff threatened to call social worker
Replies: 54
Views: 2691

Re: School staff threatened to call social worker

Schools are often paid from government funding that is based on the number of students each day in attendance, so they don't get paid as much if students don't show up. Thus, they are incentivized to get kids into the schools and make sure they show up. I went to college early, taking an informal a...
by dbr
Tue Jan 15, 2019 6:19 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Stocks
Replies: 3
Views: 537

Re: Small Cap Stocks

You should establish an asset allocation that matches your need, willingness and ability to take risk for your given time horizon and ignore investing advice that is dependent upon current market conditions forecasters. That is called market timing. Some people choose to have a tilt to small cap st...
by dbr
Tue Jan 15, 2019 6:15 pm
Forum: Investing - Help with Personal Investments
Topic: Investing in Custodial Account
Replies: 1
Views: 148

Re: Investing in Custodial Account

If you want the money later this year a savings account is exactly where it should be. An all stock investment such as SCHB could lose half its value over the course of a year. Certainly losses of 10%-20% are common. Now if such an outcome does not matter to you against an average chance of gaining ...
by dbr
Tue Jan 15, 2019 6:07 pm
Forum: Personal Consumer Issues
Topic: School staff threatened to call social worker
Replies: 54
Views: 2691

Re: School staff threatened to call social worker

I believe the issue in this case is not educational policy but legal. Every state has truancy laws and every district is involved in following the law. I don't understand the social worker reference as the relevant authority in cases of truancy is the Office of the District Attorney using the police...
by dbr
Tue Jan 15, 2019 5:46 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds vs. CDs
Replies: 31
Views: 1823

Re: Bonds vs. CDs

It is entirely possible for any variety of bond funds to deliver a 1, 2, 5 or whatever year return of more than 2.8%. Some bond funds have done that sort of thing many times in the past. I don't know what math you think could be found that says that is not possible. The difference, of course, is tha...
by dbr
Tue Jan 15, 2019 10:06 am
Forum: Investing - Theory, News & General
Topic: rebalancing questions
Replies: 6
Views: 529

Re: rebalancing questions

rkhusky, this is a taxable account and I watch my portfolio every day as well as the market, my only concern is rick management and making money. Im in the lowest tax bracket with this account being around $100,000. I have other money to add to this account so I would not have to sell the winners j...
by dbr
Tue Jan 15, 2019 9:52 am
Forum: Investing - Help with Personal Investments
Topic: Does anyone have entire 401K in bonds?
Replies: 38
Views: 3295

Re: Does anyone have entire 401K in bonds?

You need to consider your cash as part of your bond AA. In which case you don’t need more bonds. Is there a scenario where you do not? I have a few other life/family situations, where I feel a larger emergency fund is needed to allow me to sleep. For example, someone who may need high medical expen...
by dbr
Mon Jan 14, 2019 10:39 am
Forum: Investing - Help with Personal Investments
Topic: Retirement portfolio
Replies: 14
Views: 1371

Re: Retirement portfolio

I often wonder, and this is no criticism of you, that if the prospect of watching over an already simple mutual fund portfolio appears daunting, how a person will manage all the rest of one's financial affairs including all sources of income, bank accounts, credit cards, taxes, health care issues (f...
by dbr
Sun Jan 13, 2019 10:40 am
Forum: Investing - Help with Personal Investments
Topic: Advice on Personal Choice Retirement Account
Replies: 14
Views: 729

Re: Advice on Personal Choice Retirement Account

PCRA will be variable in cost depending on plan, as mentioned. At my company there is a $10 monthly fee to have the PCRA and there is a transaction cost to buy funds, maybe $7.95. Years ago my 401k charged an administrative fee on assets, but assets moved to the PCRA escaped that. These days the com...
by dbr
Sat Jan 12, 2019 6:23 pm
Forum: Investing - Help with Personal Investments
Topic: Real estate as part of overall investment plan
Replies: 37
Views: 2584

Re: Real estate as part of overall investment plan

Real estate is not for everyone and on this site it’s not for anyone. I own commercial real estate (people tend to take care of their property when their business is dependent on it). Current allocation is 36% real estate (not including residents) 34% stocks and 28% bonds 2% cash. That’s the alloca...
by dbr
Sat Jan 12, 2019 5:54 pm
Forum: Investing - Theory, News & General
Topic: Any thoughts on the role of Gold in your portfolio?
Replies: 74
Views: 4093

Re: Any thoughts on the role of Gold in your portfolio?

Seems like semantics to call it insurance rather than an investment. Precious metals share elements of both. For an unknown event like Venezuela, the amount of precious metals required would make-up a meaningful portion of a portfolio thus worth tracking. A person who is really serious about the sa...
by dbr
Sat Jan 12, 2019 3:49 pm
Forum: Investing - Help with Personal Investments
Topic: Clueless About Personal Finance At Age 30: Grew Up Poor, Now Make $400K+. Have No Clue What To Do With Money.
Replies: 29
Views: 5478

Re: Clueless About Personal Finance At Age 30: Grew Up Poor, Now Make $400K+. Have No Clue What To Do With Money.

You seem extremely concerned (rightfully so) about tax efficiency. There is a very good summary in the wiki termed "Tax efficient fund placement" or something along those lines. i think it's mostly because it's a topic i know nothing about and a close friend of mine with a similar background sold a...
by dbr
Sat Jan 12, 2019 3:03 pm
Forum: Investing - Theory, News & General
Topic: Any thoughts on the role of Gold in your portfolio?
Replies: 74
Views: 4093

Re: Any thoughts on the role of Gold in your portfolio?

OK The answer is that people do indeed hold gold. Maybe some of them will answer. A serious approach to holding gold as part of a portfolio would be the Permanent Portfolio. https://www.investopedia.com/terms/p/permanent-portfolio.asp You can find lots of discussion of that on this forum as well if ...
by dbr
Sat Jan 12, 2019 12:34 pm
Forum: Investing - Theory, News & General
Topic: Around 43K in dividends last year - feel good about it ?
Replies: 156
Views: 11909

Re: Around 43K in dividends last year - feel good about it ?

My portfolio threw around 43K total dividends in 2018 ( was around 36K in 2017). Around 14 k is taxable. This number does not include cap gains distribution by mutual funds. On one hand it feels good to see this stream of income coming in , but on the other I am still down by 90K for 2018 even afte...
by dbr
Sat Jan 12, 2019 12:24 pm
Forum: Investing - Theory, News & General
Topic: Minimizing Current Income in Taxable Portfolio
Replies: 3
Views: 328

Re: Minimizing Current Income in Taxable Portfolio

Not an expert, but an observation is that qualifying for ACA is about all your income and not just your investment income, which is likely a small part of the total. There are lots of people who are in a situation of earning too much money to qualify for one program or another. Maybe the solution is...
by dbr
Fri Jan 11, 2019 5:26 pm
Forum: Investing - Theory, News & General
Topic: What are the disadvantages of taking all risk on equity side?
Replies: 63
Views: 3547

Re: What are the disadvantages of taking all risk on equity side?

Two disadvantages: 1. Lower returns in the long run 2. Worse diversification of your equity allocation If your time horizon is not the long run, and/or you have a small equity allocation, neither of these points will matter as much. It is not a lower expected return if you hold risk constant. Holdi...
by dbr
Fri Jan 11, 2019 5:09 pm
Forum: Personal Consumer Issues
Topic: What is an appropriate retirement gift?
Replies: 23
Views: 1342

Re: What is an appropriate retirement gift?

It isn't appropriate to give retirement gifts. The retiree might give the gift of throwing the bash. As with all events one attends bring a "host gift" of wine, whisk(e)y, or whatever. With close friends any kind of prank would go over well.
by dbr
Fri Jan 11, 2019 2:46 pm
Forum: Investing - Theory, News & General
Topic: Around 43K in dividends last year - feel good about it ?
Replies: 156
Views: 11909

Re: Around 43K in dividends last year - feel good about it ?

You should feel terrible about the $14K in taxable dividends. Terrible? Seriously? Sometimes I think some people on this forum live in an alternate universe. You should feel proud. That is an excellent accomplishment. Your total dividends is more than my annual salary. Keep up the good work. Agree ...
by dbr
Fri Jan 11, 2019 2:40 pm
Forum: Investing - Theory, News & General
Topic: SS/Pension/etc as bond allocation?
Replies: 25
Views: 1630

Re: SS/Pension/etc as bond allocation?

Did you count your salary as a bond? If you want to take more risk -- take it. Having a pension allows you to take a bit more risk if you desire. You don't need to convert an income stream into pseudo bond. Indeed so. Part of the process of need/ability/willingness includes the case of young people...
by dbr
Fri Jan 11, 2019 2:35 pm
Forum: Investing - Help with Personal Investments
Topic: Good calculators available?
Replies: 7
Views: 781

Re: Good calculators available?

Oh, boy. Good examples of "be careful what you ask for..." Let me simplify this, in your opinion, which is the best, most accurate calculator out there (that's also simple to use)? I don't think any of the calculators is good enough or accurate enough to be called "the best, most accurate." I tend ...
by dbr
Fri Jan 11, 2019 1:43 pm
Forum: Investing - Theory, News & General
Topic: SS/Pension/etc as bond allocation?
Replies: 25
Views: 1630

Re: SS/Pension/etc as bond allocation?

Did you count your salary as a bond? If you want to take more risk -- take it. Having a pension allows you to take a bit more risk if you desire. You don't need to convert an income stream into pseudo bond. Indeed so. Part of the process of need/ability/willingness includes the case of young people...
by dbr
Fri Jan 11, 2019 1:40 pm
Forum: Investing - Help with Personal Investments
Topic: Preservation of capital at Age 93
Replies: 26
Views: 3103

Re: Preservation of capital at Age 93

My situation is not complicated but I plan to stay the course with the CDs (2.3%+) and the Treasuries (about 2%) and my question is : Is there a better course of action to accomplish my goal of capital preservation and mild appreciation for my heir? There is certainly nothing wrong or to worry abou...
by dbr
Fri Jan 11, 2019 1:28 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalancing with maturing CDs/bonds
Replies: 1
Views: 142

Re: Rebalancing with maturing CDs/bonds

I think it is generally assumed that income/withdrawal, distributions, or investment changes such as you mention can be opportunities to partially rebalance whether or not one is outside bands. The idea is that in these cases one is incurring no additional tax or other costs since the transactions a...
by dbr
Fri Jan 11, 2019 1:17 pm
Forum: Investing - Theory, News & General
Topic: SS/Pension/etc as bond allocation?
Replies: 25
Views: 1630

Re: SS/Pension/etc as bond allocation?

Idk how realistic a pension can be thought of as a 250kbond here but just wanted to clear the math. Since a pension is not a bond there is no math to clear. There is a process to follow however. That process is to consider the pension to be what it is, which is a lifetime income stream in real or n...
by dbr
Fri Jan 11, 2019 1:10 pm
Forum: Investing - Theory, News & General
Topic: Around 43K in dividends last year - feel good about it ?
Replies: 156
Views: 11909

Re: Around 43K in dividends last year - feel good about it ?

My portfolio threw around 43K total dividends in 2018 ( was around 36K in 2017). Around 14 k is taxable. This number does not include cap gains distribution by mutual funds. On one hand it feels good to see this stream of income coming in , but on the other I am still down by 90K for 2018 even afte...
by dbr
Fri Jan 11, 2019 12:46 pm
Forum: Investing - Theory, News & General
Topic: What are the disadvantages of taking all risk on equity side?
Replies: 63
Views: 3547

Re: What are the disadvantages of taking all risk on equity side?

I found Bill Bernstein’s argument to be persuasive regarding taking risk on the stock side. So I have chosen to limit my fixed income holdings to cash and short term government bonds, but I did increase my stock allocation as a result. (I also have access to the TSP G fund, which is an exceptionall...
by dbr
Fri Jan 11, 2019 12:43 pm
Forum: Investing - Theory, News & General
Topic: Around 43K in dividends last year - feel good about it ?
Replies: 156
Views: 11909

Re: Around 43K in dividends last year - feel good about it ?

Perhaps I don't understand the OPs question, because I sure don't understand many of the responses. The OP has equity in both retirement accounts and taxable. They distribute dividends. $14K of which was in taxable, thus subject to possible taxes. The equity market was down in 2018. Is this all agr...
by dbr
Fri Jan 11, 2019 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: Building Wealth Through Home Equity--Myth or Reality?
Replies: 94
Views: 6049

Re: Building Wealth Through Home Equity--Myth or Reality?

I think this thread underestimates the systematic risk you hold with real estate. You are taking a leveraged bet on both holding land PLUS location-specific risks. This is shown in this WSJ article about bag holders who bought houses on golf courses: https://www.wsj.com/articles/golf-home-owners-fi...
by dbr
Fri Jan 11, 2019 12:28 pm
Forum: Personal Consumer Issues
Topic: Who's flying?
Replies: 51
Views: 5765

Re: Who's flying?

There is a TSA App to get wait times and if you Google "Security Wait Times (your airport)" you will often find a web page like this: https://www.ifly.com/john-f-kennedy-international-airport/wait-times That sounds great, but when I try the search, and also when I go to the TSA app, all that there ...
by dbr
Fri Jan 11, 2019 12:25 pm
Forum: Investing - Theory, News & General
Topic: Around 43K in dividends last year - feel good about it ?
Replies: 156
Views: 11909

Re: Around 43K in dividends last year - feel good about it ?

Thanks for all the responses. I understand the total return concept but who can guarantee that the companies not giving out dividends are making good use of that money ? Lots of Companies tend to buy back shares instead of dividends and analyses have shown that a lot of times that gives a poor ROI....
by dbr
Fri Jan 11, 2019 11:19 am
Forum: Investing - Theory, News & General
Topic: What are the disadvantages of taking all risk on equity side?
Replies: 63
Views: 3547

Re: What are the disadvantages of taking all risk on equity side?

My personal judgement is, first, that "stay the course" is the Prime Directive and that since the course I chose involved Total Bond for my non-stock allocation, I would need a very convincing reason to change a reasonably sound decision; second, that the extra risk of bonds-over-cash is almost inv...
by dbr
Fri Jan 11, 2019 11:17 am
Forum: Investing - Theory, News & General
Topic: What are the disadvantages of taking all risk on equity side?
Replies: 63
Views: 3547

Re: What are the disadvantages of taking all risk on equity side?

While I've tried to muster enthusiasm for a broadly diversified fixed income portfolio, I find myself leaning against taking much of any risk at all on the fixed income side. Part of my thinking is simply the irritation/frustration of losing any money at all in the portion of my portfolio that is d...
by dbr
Fri Jan 11, 2019 11:04 am
Forum: Personal Finance (Not Investing)
Topic: Building Wealth Through Home Equity--Myth or Reality?
Replies: 94
Views: 6049

Re: Building Wealth Through Home Equity--Myth or Reality?

To me, a home is a living expense. I want to minimize my living expenses. I don't like leverage. You can't go bankrupt if you don't owe any money. I did choose to buy rather than rent, but I do not count my home as part of my investments. The return is irrelevant. I bought so my housing expense is ...
by dbr
Fri Jan 11, 2019 10:59 am
Forum: Personal Consumer Issues
Topic: Who's flying?
Replies: 51
Views: 5765

Re: Who's flying?

There is a TSA App to get wait times and if you Google "Security Wait Times (your airport)" you will often find a web page like this: https://www.ifly.com/john-f-kennedy-int ... wait-times
by dbr
Fri Jan 11, 2019 10:53 am
Forum: Personal Consumer Issues
Topic: Dental work - possibly going elsewhere
Replies: 17
Views: 1276

Re: Dental work - possibly going elsewhere

I would ask to be put on a cancellation list; I would also call and ask to speak to the dentist directly and tell her/him that reception isn't giving you a timely appointment. I agree the first step is that reception may not be recognizing this is not something to postpone. That should already be i...
by dbr
Fri Jan 11, 2019 10:32 am
Forum: Investing - Help with Personal Investments
Topic: What are these secret vanguard index trust?
Replies: 11
Views: 1337

Re: What are these secret vanguard index trust?

An advantage is that you should be seeing the absolute minimum expenses in such trusts. In my 401k the S&P 500 trust had an ER of 0.01%, and someone once reported here an ER of 0.00% for that sort of fund. It is really just a case of economy of scale which any large employer doing what they should b...
by dbr
Fri Jan 11, 2019 10:11 am
Forum: Personal Finance (Not Investing)
Topic: Building Wealth Through Home Equity--Myth or Reality?
Replies: 94
Views: 6049

Re: Building Wealth Through Home Equity--Myth or Reality?

To me, a home is a living expense. I want to minimize my living expenses. I don't like leverage. You can't go bankrupt if you don't owe any money. I did choose to buy rather than rent, but I do not count my home as part of my investments. The return is irrelevant. I bought so my housing expense is ...
by dbr
Fri Jan 11, 2019 10:01 am
Forum: Investing - Theory, News & General
Topic: Retirement calculator with alternate withdrawal methods?
Replies: 3
Views: 451

Re: Retirement calculator with alternate withdrawal methods?

Don't forget that all withdrawal models generate results that are subject to a range of error or offer advantages that are contingent on certain actual histories of investment returns. Trying to demonstrate that any particular strategy is a really good idea compared to another one is very difficult....