Search found 26108 matches

by dbr
Tue Apr 24, 2018 5:32 pm
Forum: Investing - Help with Personal Investments
Topic: Income investing in Taxable
Replies: 17
Views: 710

Re: Income investing in Taxable

Someone who is not financially literate might panic when the value of the account drops as rates rise. I was thinking the same thing. Need some empathy on the OP's question. What most of us here would do and what the op's family member might be comfortable with are probably 2 very different things....
by dbr
Tue Apr 24, 2018 5:28 pm
Forum: Investing - Help with Personal Investments
Topic: Income investing in Taxable
Replies: 17
Views: 710

Re: Income investing in Taxable

montanagirl wrote:
Tue Apr 24, 2018 4:43 pm
Mike Scott wrote:
Tue Apr 24, 2018 4:38 pm
You might check out the Vanguard Tax Managed Balanced Fund.
I was thinking about that one for my rmd next year, but is the tax managed part really necessary if one is in the zero tax bracket?
No, it is mainly about using munis instead of regular bonds, as far as I know.
by dbr
Tue Apr 24, 2018 4:24 pm
Forum: Investing - Help with Personal Investments
Topic: Customer Service with Vanguard
Replies: 49
Views: 3743

Re: Customer Service with Vanguard

As far as I know that is what is supposed to happen when someone dies unless or until you establish yourself as executor of the estate or as a beneficiary TOD/POD or it was a joint account. No other broker is going to be different.
by dbr
Tue Apr 24, 2018 3:57 pm
Forum: Investing - Help with Personal Investments
Topic: Income investing in Taxable
Replies: 17
Views: 710

Re: Income investing in Taxable

I believe Vanguard as most other brokers will arrange to distribute any arbitrary regular amount from a holding. That does not have to be related to dividend and capital gains distributions and is still set it and forget it from the point of view of the investor. A difference is that the disbursemen...
by dbr
Tue Apr 24, 2018 10:42 am
Forum: Personal Finance (Not Investing)
Topic: Smart or Stupid? Paying taxes with credit card to satisfy minimum spending requirements.
Replies: 21
Views: 1705

Re: Smart or Stupid? Paying taxes with credit card to satisfy minimum spending requirements.

I would hate to pay the fee. I would buy gift cards for places I go frequently. Grocery stores, gas station, restaurants, retail stores, etc. One interesting thing I haven't fully explored is overpaying things you can for free like cable or Internet. If the required spend is, for example, $4000 or ...
by dbr
Tue Apr 24, 2018 10:39 am
Forum: Investing - Theory, News & General
Topic: NYT article: Everyone should hire a financial planner
Replies: 102
Views: 7830

Re: NYT article: Everyone should hire a financial planner

Instead of stating that "everyone should hire a financial planner," New York Times should have stated that "everyone should use the Bogleheads Forum" in the following order: 1. Taylor's 3-fund portfolio... Perhaps a question for another thread, but why not a Target Date fund rather than the 3-fund ...
by dbr
Tue Apr 24, 2018 10:34 am
Forum: Investing - Help with Personal Investments
Topic: Dividend fund in taxable account during retirement, yea or nay?
Replies: 33
Views: 2363

Re: Dividend fund in taxable account during retirement, yea or nay?

People often get confused when talking about dividends for mutual funds vs individual companies. The concepts between the two are very similar but it is easier to think about for mutual funds. For a mutual fund dividends accrue over time as the underlying companies pay their dividends to the mutual...
by dbr
Tue Apr 24, 2018 10:24 am
Forum: Investing - Theory, News & General
Topic: NYT article: Everyone should hire a financial planner
Replies: 102
Views: 7830

Re: NYT article: Everyone should hire a financial planner

No matter how smart you are, it is prudent to get a check-up periodically. Circumstances change. Judgement deteriorates with age in most people. To pretend otherwise is, at best, arrogance, and at worst, dangerous. Check-in with an expert every 5 or so years. Pat yourself on the back when you find ...
by dbr
Tue Apr 24, 2018 9:34 am
Forum: Personal Finance (Not Investing)
Topic: Smart or Stupid? Paying taxes with credit card to satisfy minimum spending requirements.
Replies: 21
Views: 1705

Re: Smart or Stupid? Paying taxes with credit card to satisfy minimum spending requirements.

I would not do it. It's cost you money to pay your taxes. I would find other spending options that don't cost you to charge. I would buy everything else on CC (Food/dining, gas, utilities,charitable giving). I would think you could spend $1000/mo without much effort. You may need to move some charg...
by dbr
Tue Apr 24, 2018 8:56 am
Forum: Investing - Help with Personal Investments
Topic: Dividend fund in taxable account during retirement, yea or nay?
Replies: 33
Views: 2363

Re: Dividend fund in taxable account during retirement, yea or nay?

If you were in retirement, had a lump sum to invest in a taxable account (in the US portion of a three fund portfolio) and would only need income equal to the amount of dividends that VHYDX happens to provide, would you invest in VHYDX, invest in VTSMX, invest in both or do something different? I p...
by dbr
Tue Apr 24, 2018 8:33 am
Forum: Personal Finance (Not Investing)
Topic: Structuring Newlywed Finances for Fairness and Less Arguments
Replies: 84
Views: 5769

Re: Structuring Newlywed Finances for Fairness and Less Arguments

From each according to his/her ability; to each according to his/her need. (Except need really means want, and therein lies the rub.)

The bottom line is that a lot of people just shouldn't be married to each other, or of they are, they need to learn to like it.
by dbr
Tue Apr 24, 2018 8:29 am
Forum: Investing - Help with Personal Investments
Topic: Dividend fund in taxable account during retirement, yea or nay?
Replies: 33
Views: 2363

Re: Dividend fund in taxable account during retirement, yea or nay?

Welcome, However, what is the forums opinion regarding investing a lump sum (windfall) in VHYDX during retirement, in a taxable account, if the dividends are equal to the amount one wishes to withdraw annually? Could this possibly be a good position in the event of a market downturn, which might ma...
by dbr
Mon Apr 23, 2018 6:15 pm
Forum: Investing - Help with Personal Investments
Topic: Dividend fund in taxable account during retirement, yea or nay?
Replies: 33
Views: 2363

Re: Dividend fund in taxable account during retirement, yea or nay?

keepingitsimple wrote:
Sun Apr 22, 2018 7:42 pm

Thanks in advance to all for taking time to read and share your thoughts and opinions.
I can save you waiting for replies to come in by referring you to the results of this search:

https://www.google.com/search?sitesearc ... =dividends
by dbr
Mon Apr 23, 2018 4:46 pm
Forum: Investing - Help with Personal Investments
Topic: Spreading Bond Safety to Taxable [Portfolio help]
Replies: 12
Views: 873

Re: Spreading Bond Safety to Taxable [Portfolio help]

Hi all, thanks for the detailed explanations! Very helpful. You do not need a tax-exempt bond fund in the 24% bracket. I would use one when you get to the 32% tax bracket. One question on this -- I did a tax equivalent yield calculator and with a 24% federal bracket and a 6.65% NY state bracket, if...
by dbr
Mon Apr 23, 2018 8:56 am
Forum: Personal Consumer Issues
Topic: BH travel tips?
Replies: 147
Views: 8710

Re: BH travel tips?

I frequently wished that I had a compass in cities, but was not familiar with the concept of button compasses. On Amazon they have more sophisticated ones for $8 and above, and cheap ones selling 10 for $10. Which one do you use? I've had a little one that, IIRC, cost about $5 a number of years ago...
by dbr
Sun Apr 22, 2018 6:25 pm
Forum: Personal Finance (Not Investing)
Topic: Strategy for Use of Restricted Stock Units
Replies: 18
Views: 1148

Re: Strategy for Use of Restricted Stock Units

I hope people are clear that you are taxed on the full value of the RSU when it vests no matter when you sell the stock now or later. The LT/ST thing applies to any additional change in value after vesting.

It isn't even a discussion that one sells as soon as one owns the shares.
by dbr
Sun Apr 22, 2018 6:12 pm
Forum: Investing - Help with Personal Investments
Topic: Financial planners [looking for one]
Replies: 26
Views: 1949

Re: Financial planners [looking for one]

Most of the posts in this thread are about how to get around using a financial planner to determine your specific allocations and/or funds in your portfolio, and I recently ALSO used the free part of Vanguard's advisory service to simply down to an approx. 3 fund portfolio (from one that had far to...
by dbr
Sun Apr 22, 2018 2:23 pm
Forum: Investing - Theory, News & General
Topic: Boglehead Philosophy Open To Change?
Replies: 197
Views: 8203

Re: Boglehead Philosophy Open To Change?

It's easy for Bogleheads to feel like investing gurus but it is not the only way to invest and may not necessarily be the best way to invest in the future. Like they've got it all figured out and now they know everything. (Or at least this is how I feel sometimes when helping people with investing)...
by dbr
Sun Apr 22, 2018 2:17 pm
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 2137
Views: 1311747

Re: "A successful index fund investor goes through four phases"

Bogleheads: Rick Ferri recently made a post which Three-Fund Portfolio investors will appreciate: A successful index fund investor goes through four phases: 1) Darkness - takes advice from everyone; 2) Enlightenment - realizes a market return is superior to their return; 3) Complexity - overdoing e...
by dbr
Sat Apr 21, 2018 2:34 pm
Forum: Investing - Help with Personal Investments
Topic: New to Investing
Replies: 8
Views: 558

Re: New to Investing

(3) I automatically reinvest all dividends in my 401K and will do so for the IRA account I will soon open. However, I’d like to know what the best practices are for tax efficiency purposes (and capital gains purposes too), as to reinvesting dividends into your portfolio as opposed to keeping it as ...
by dbr
Sat Apr 21, 2018 1:44 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds beat stocks ?
Replies: 10
Views: 855

Re: Bonds beat stocks ?

Must we not define types of bonds? There are different types of stocks too - large cap vs. small cap, domestic vs. international etc... but I still think the spectrum of "riskiness" in types of bonds is greater than the spectrum of "riskiness" in stocks. For example: short-term treasuries vs. long-...
by dbr
Sat Apr 21, 2018 1:34 pm
Forum: Investing - Theory, News & General
Topic: NYT article: Everyone should hire a financial planner
Replies: 102
Views: 7830

Re: NYT article: Everyone should hire a financial planner

Many here are viewing the advisor as a salesman of financial products. Advisor should only advise and manage the account. There should be 3 separate entities. 1. The advisor 2. The investment funds themselves 3. The holder of the accounts. For example, I have an independent fiduciary advisor who ha...
by dbr
Sat Apr 21, 2018 1:25 pm
Forum: Investing - Help with Personal Investments
Topic: Want to be 100% in stock index funds ,
Replies: 31
Views: 2772

Re: Want to be 100% in stock index funds ,

Somebody here probably knows the statistics on the likelihood of bonds vs. stocks outperforming on a 5-year time horizon. Generally, stocks are higher expected value , but over a 5-year period, pretty much anything can happen in stocks. It's probably better to look at that decision as a coin flip o...
by dbr
Sat Apr 21, 2018 12:50 pm
Forum: Investing - Help with Personal Investments
Topic: Take tax losses now or wait??
Replies: 8
Views: 843

Re: Take tax losses now or wait??

Unless I am missing something realizing a LT loss to offset a realized ST gain in a year would be a no-brainer. If further losses accrue you can realize those too, and if the position regains you will be glad you did not miss the opportunity. This assumes the loss/gain choices are in a long term hol...
by dbr
Sat Apr 21, 2018 12:45 pm
Forum: Investing - Help with Personal Investments
Topic: Uncertain what to do about trust distribution
Replies: 5
Views: 575

Re: Uncertain what to do about trust distribution

It is usually a bad idea to mess around with asset allocation because you are nervous about current conditions. When you first decided on that allocation the idea was supposed to be that you would stick with it. However, it is fair that if circumstances change, such as one has much more wealth than ...
by dbr
Sat Apr 21, 2018 11:59 am
Forum: Investing - Help with Personal Investments
Topic: A basic, elementary question on why it makes sense to invest more in stocks than bonds despite dividend rates
Replies: 20
Views: 2210

Re: A basic, elementary question on why it makes sense to invest more in stocks than bonds despite dividend rates

One can look at the realized vs unrealized capital gains for a total stock market fund compared to Windsor, for example, and see why a person holding such things in taxable accounts and having large personal tax exposure probably made a significant investing mistake to buy Windsor. Note the real pro...
by dbr
Sat Apr 21, 2018 10:34 am
Forum: Investing - Theory, News & General
Topic: NYT article: Everyone should hire a financial planner
Replies: 102
Views: 7830

Re: NYT article: Everyone should hire a financial planner

https://www.nytimes.com/2018/04/20/smarter-living/why-you-should-hire-a-financial-planner.html?action=click&module=Smarter%20Living&pgtype=Homepage “I liken it to WebMD. You can look up symptoms, but there’s a limit to what you can do with that information,” Mr. Brown explained. “Finance is the sam...
by dbr
Sat Apr 21, 2018 10:30 am
Forum: Investing - Help with Personal Investments
Topic: Want to be 100% in stock index funds ,
Replies: 31
Views: 2772

Re: Want to be 100% in stock index funds ,

I will be retiring soon and I have been reading Morningstars ETF Inverter , and the AAII publication for several years. I think I can do ok without taking anything out of my portfolio for the first 5 years or so . So it seems to me that I'll be better off in 5 years if I'm totally in Total world st...
by dbr
Sat Apr 21, 2018 9:58 am
Forum: Investing - Help with Personal Investments
Topic: Bonds beat stocks ?
Replies: 10
Views: 855

Re: Bonds beat stocks ?

This question and the answers to it are fundamental to investing. I think, however, the question should be changed from whether or not it is possible for bonds to return more in a given period than stocks (obviously it is possible) to what the investor can expect in any future period from stocks or ...
by dbr
Sat Apr 21, 2018 9:20 am
Forum: Investing - Help with Personal Investments
Topic: Investing/Planning for long-term cash flow needs
Replies: 9
Views: 953

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

Dbr, Yes, a period certain stream of cash / ladder of bonds is indeed what I was thinking and wanted help with the logistics of setting it up. While I would like to plan the investments such that the cash flow needs are met exactly as expenses are projected, a slight shortfall would not jeopardize ...
by dbr
Fri Apr 20, 2018 7:37 pm
Forum: Investing - Theory, News & General
Topic: NYT article: Everyone should hire a financial planner
Replies: 102
Views: 7830

Re: NYT article: Everyone should hire a financial planner

I always love how financial planners compare themselves to doctors and lawyers. You don't even need a high school diploma to be a "financial planner". Not sure what you point is. I know a doctor - DVM, not MD, who neither graduated high school or college. :happy DVM and the license to practice requ...
by dbr
Fri Apr 20, 2018 5:52 pm
Forum: Investing - Theory, News & General
Topic: NYT article: Everyone should hire a financial planner
Replies: 102
Views: 7830

Re: NYT article: Everyone should hire a financial planner

In my opinion the real issue is not the damage you might suffer if you don't seek professional advice. The real issue is the all too great likelihood you will suffer severe financial damage because you sought advice. There are very few areas of life where asking for help is more likely to hurt you a...
by dbr
Fri Apr 20, 2018 5:47 pm
Forum: Personal Consumer Issues
Topic: Negotiating for a new Toyota.[my fault comparing apples and oranges]
Replies: 32
Views: 2391

Re: Negotiating for a new Toyota.[my fault comparing apples and oranges]

I was comparing MSRP to out the door price which included mn sales tax and the crazy doc fees, license, title filing fee, etc. So the price is a little bit better than carsdirect.com. Much more in line with what I expected. Sorry for raising the desperation flag! Exactly. That is probably $2500 und...
by dbr
Fri Apr 20, 2018 3:44 pm
Forum: Investing - Help with Personal Investments
Topic: Why am I even holding BND? It has only been losing me money.
Replies: 62
Views: 8323

Re: Why am I even holding BND? It has only been losing me money.

Yet remarkably, we rarely see threads like this obsessing about small changes in stocks. Perhaps because there are so many different options in the cash to fixed income spectrum, and surprisingly little difference between various paths, it lends better to obsessing over minute differences. I don't ...
by dbr
Fri Apr 20, 2018 8:15 am
Forum: Personal Consumer Issues
Topic: How to pay for travel? Redeem CC points vs cash vs apply for new card?
Replies: 10
Views: 926

Re: How to pay for travel? Redeem CC points vs cash vs apply for new card?

How long of a trip can you do for $300 or $400? I am confused. With reasonable advance planning NY to LA can be had for less than $400 round trip or for no more than 25,000 miles on various airlines. That also comes out at about a cent and a half value of a point, which is pretty much ballpark as t...
by dbr
Fri Apr 20, 2018 7:59 am
Forum: Personal Consumer Issues
Topic: How to pay for travel? Redeem CC points vs cash vs apply for new card?
Replies: 10
Views: 926

Re: How to pay for travel? Redeem CC points vs cash vs apply for new card?

3) Applying for a credit card with reward miles, and then cancelling said credit card soon after you complete the flight. Even better if said CC doesn't have annual fee. On first glance, appears that option 3 > 2 >1. But, I wasn't sure if there were some situations that this may not be true. I don'...
by dbr
Fri Apr 20, 2018 7:42 am
Forum: Investing - Help with Personal Investments
Topic: Opinions on current Morgan Stanley portfolio - and move to Vanguard PAS
Replies: 5
Views: 411

Re: Opinions on current Morgan Stanley portfolio - and move to Vanguard PAS

It makes sense to get rid of that, mostly anyway, and move everything to a 3 fund concept. It doesn't take a cost of even 0.3% to do that but if you really can't trust yourself I guess that is what you have to pay. The one single priority that needs to be met immediately is getting rid of the 1% AUM...
by dbr
Thu Apr 19, 2018 4:54 pm
Forum: Investing - Theory, News & General
Topic: Wellesley January Price Drop? Why?
Replies: 27
Views: 3245

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: 26
Views: 1949

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: 170
Views: 11233

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: 9896

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: 31
Views: 4237

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: 121
Views: 8018

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: 596

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: 21
Views: 2035

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: 501

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: 9
Views: 953

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: 31
Views: 4237

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: 121
Views: 8018

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...