Search found 26920 matches

by dbr
Tue Jun 19, 2018 1:06 pm
Forum: Investing - Help with Personal Investments
Topic: Financial Literacy...
Replies: 6
Views: 477

Re: Financial Literacy...

In this day of the internet a lot of basic information is at your fingertips by going to Google and looking things up. For example: https://en.wikipedia.org/wiki/401(k) Already in the second paragraph of the introduction there are links to some of the other kinds of tax preferred accounts. If you co...
by dbr
Tue Jun 19, 2018 11:36 am
Forum: Personal Finance (Not Investing)
Topic: Do you think it is smart to disclose that you have passive investments to other people?
Replies: 41
Views: 3076

Re: Do you think it is smart to disclose that you have passive investments to other people?

Thank you guys for your responses. I can see the potential downsides and that it would be better just building trust/loyalty by focusing on what makes you serve your clients best. Have you decided yet on whether to attend med school, MBA or take a year or more to work in a few related areas? Yes, I...
by dbr
Tue Jun 19, 2018 11:23 am
Forum: Investing - Theory, News & General
Topic: What does it mean: Rule No. 1: Never lose money
Replies: 62
Views: 3943

Re: What does it mean: Rule No. 1: Never lose money

gundlached wrote:
Tue Jun 19, 2018 11:20 am
Sounds like more of a folksy buffett-ism than an investment strategy.
Yes, that is the whole point. The real problem is in someone trying to figure out how that can be an investment strategy when it obviously can't be.
by dbr
Tue Jun 19, 2018 11:21 am
Forum: Personal Consumer Issues
Topic: Article on hotel booking sites - no bargains
Replies: 22
Views: 1849

Re: Article on hotel booking sites - no bargains

On occasion you may get a better deal by booking direct with the hotel. That is, if the price is already better. It is highly unlikely that a desk clerk who answers your call will have the power to actually give you a better price than the rate he sees pop up on his screen. Perhaps it will work at ...
by dbr
Tue Jun 19, 2018 11:14 am
Forum: Investing - Help with Personal Investments
Topic: How do folks pull retirement income out of Wellesley?
Replies: 8
Views: 1033

Re: How do folks pull retirement income out of Wellesley?

The lower your tax bracket the less tax efficiency is an issue. The best evaluation is to fill out dummy tax returns for alternate investment holdings of similar overall return and risk using estimated distributions and compare the actual tax costs in dollars. Then you can decide if whatever differe...
by dbr
Tue Jun 19, 2018 11:10 am
Forum: Investing - Theory, News & General
Topic: Do you have to invest in Bond ETF?
Replies: 5
Views: 500

Re: Do you have to invest in Bond ETF?

Currently I'm buying VOO and VTI. Is it an okay decision to hold on to these two funds for 30 years? I'm 21 years old and plan to ride out the market but don't want to jeopardize my asset growth by investing in the total bond market etf or something like that. Aside from the previous comments, one ...
by dbr
Tue Jun 19, 2018 10:45 am
Forum: Investing - Help with Personal Investments
Topic: Asset Location question – Mimicking Asset Allocation in 401k and taxable
Replies: 13
Views: 205

Re: Asset Location question – Mimicking Asset Allocation in 401k and taxable

With multiple accounts, I use the tools I described in this thread to show my overall asset allocation: https://www.bogleheads.org/forum/viewtopic.php?t=150267 so I don't make each account have the same asset allocation, but really only look at the overall total portfolio asset allocation. To anybo...
by dbr
Tue Jun 19, 2018 10:35 am
Forum: Investing - Help with Personal Investments
Topic: Asset Location question – Mimicking Asset Allocation in 401k and taxable
Replies: 13
Views: 205

Re: Asset Location question – Mimicking Asset Allocation in 401k and taxable

If by smooth the portfolio you mean keep it properly at desired asset allocation, then I agree it can be helpful to have assets you need in tax deferred accounts to rebalance without capital gains taxes. The usual result of tax location advice is to keep all of one's bonds in tax deferred but that d...
by dbr
Tue Jun 19, 2018 10:28 am
Forum: Personal Consumer Issues
Topic: Article on hotel booking sites - no bargains
Replies: 22
Views: 1849

Re: Article on hotel booking sites - no bargains

We always book with the location as near as possible, usually the B&B variety. Strangely enough our best finds recently have come from identifying offerings labelled on Google Maps of the area we want to be in. That gives you a head start on being in the location you want.
by dbr
Tue Jun 19, 2018 10:20 am
Forum: Investing - Help with Personal Investments
Topic: Retirement Investing With Healthcare $$ Concerns
Replies: 8
Views: 454

Re: Retirement Investing With Healthcare $$ Concerns

I don't think the advice from the second advisor to put everything in cash is logical. The flaw is that a medical cost catastrophe for you that would destroy your assets in the event of a market downturn would also destroy your investment assets without a downturn. In short altering your asset alloc...
by dbr
Tue Jun 19, 2018 9:58 am
Forum: Investing - Help with Personal Investments
Topic: Morgan Stanley Target date portfolios?
Replies: 19
Views: 821

Re: Morgan Stanley Target date portfolios?

I asked for a list of index funds. He came back with this: "I would suggest that the average net expense ratio of 0.65% or 0.64% is very reasonable and cost effective for a combination of active and passive managers, and a diversified portfolio. Combine that with the 0.72% advisory fee (Morgan Stan...
by dbr
Tue Jun 19, 2018 9:54 am
Forum: Investing - Help with Personal Investments
Topic: Stock/Bond/??? allocations during Retirement
Replies: 5
Views: 762

Re: Stock/Bond/??? allocations during Retirement

The thought is that bonds don't have "juice" to offset losses or gains in stocks. A better image is that bonds dilute the volatility of stocks by blending volatile stocks with not very volatile bonds. The theory here is that portfolios are described by the two properties of expected return and expec...
by dbr
Tue Jun 19, 2018 9:45 am
Forum: Personal Consumer Issues
Topic: Carpet Installers- Tipping?
Replies: 13
Views: 504

Re: Carpet Installers- Tipping?

I have a tendency to tip roofers, installers, etc., meaning the actual guys that do the work. I guess $20 a person at the end of the day for work that takes all day or a couple of days. It it is a one hour job probably not. My experience is that it has always seemed to be genuinely appreciated. I do...
by dbr
Tue Jun 19, 2018 9:31 am
Forum: Investing - Help with Personal Investments
Topic: Taxable Investment Help
Replies: 7
Views: 522

Re: Taxable Investment Help

Out of curiosity, is there any other funds I should be looking at or any other suggestions you may have? I have seen VGTSX mentioned for additional international exposure as well. If not, I will just split it in VTSAX and VBTLX as recommended above. VGTSX is Total International Stock Index fund. Th...
by dbr
Tue Jun 19, 2018 9:25 am
Forum: Investing - Help with Personal Investments
Topic: CD or Bonds?
Replies: 6
Views: 614

Re: CD or Bonds?

Apples vs Oranges. Think of it this way. Different types of "fixed" whether CD's, Treasuries, Bonds, Bond Funds, etc, have varying degrees of: 1 Liquidity (CD/Treasury/Bond locked in per term vs Bond Fund) 2 Security of Principal 3 Volatility So each serves a purpose and has a different place (thou...
by dbr
Tue Jun 19, 2018 9:14 am
Forum: Investing - Help with Personal Investments
Topic: Morgan Stanley Target date portfolios?
Replies: 19
Views: 821

Re: Morgan Stanley Target date portfolios?

Yes, so I do work for a VERY small, family-owned company. HR (which is actually the senior accountant) said to call Morgan Stanley and gave me contact info. I asked for a list of index funds. He came back with this: Yes, this is the heart of the problem. Classically bad 401k's are often associated ...
by dbr
Tue Jun 19, 2018 9:02 am
Forum: Investing - Theory, News & General
Topic: Mutual Fund Dividends
Replies: 12
Views: 938

Re: Mutual Fund Dividends

I suppose one could back up one step and ask how effectively the companies whose stock is held by the fund manage the cash flow required to pay the dividends. The picture would involve the same issues already described except that for corporate operations cash flow probably dwarfs assets compared to...
by dbr
Tue Jun 19, 2018 8:57 am
Forum: Investing - Help with Personal Investments
Topic: CD or Bonds?
Replies: 6
Views: 614

Re: CD or Bonds?

Neither is categorically better than the other. For the long term investor in stocks and bonds intermediate term bond funds are just fine and don't worry about "performance over the last few years" (whatever you mean by that anyway). For that same investor attention should be focused on the overall ...
by dbr
Tue Jun 19, 2018 8:43 am
Forum: Investing - Theory, News & General
Topic: What does it mean: Rule No. 1: Never lose money
Replies: 62
Views: 3943

Re: What does it mean: Rule No. 1: Never lose money

nisiprius, i think your criticism/attacks on buffett are unfair and uncalled for. he is one of the greatest investors and capital allocators of all time. he has gone above and beyond just about any other executive or fund manager in teaching others and describing the inner workings of Berkshire thr...
by dbr
Tue Jun 19, 2018 8:36 am
Forum: Investing - Help with Personal Investments
Topic: Morgan Stanley Target date portfolios?
Replies: 19
Views: 821

Re: Morgan Stanley Target date portfolios?

In addition, something just doesn't sound right about you being told that "thousands" of funds are available. That may be true via the probably-extra-fee items #2 or #3 above, but it shouldn't be true of item #1 basic 401(k) menu of options. I wonder what the answer would be if you asked them if th...
by dbr
Mon Jun 18, 2018 5:59 pm
Forum: Investing - Help with Personal Investments
Topic: Morgan Stanley Target date portfolios?
Replies: 19
Views: 821

Re: Morgan Stanley Target date portfolios?

It is absolutely unacceptable that they can't or won't tell you how the fund is allocated. That actually doesn't even make any sense. Does the fund profile and/or the prospectus really contain no information? What does the rep at MS say exactly when you ask him for a description of the allocation of...
by dbr
Mon Jun 18, 2018 5:49 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable Investment Help
Replies: 7
Views: 522

Re: Taxable Investment Help

You can put the money in VTSAX and when you sell it you can sell some bonds in your tax deferred account and buy VTSAX there.
by dbr
Mon Jun 18, 2018 5:33 pm
Forum: Investing - Theory, News & General
Topic: SEC Yield vs Distribution Yield
Replies: 11
Views: 17656

Re: SEC Yield vs Distribution Yield

First of all you can't compare tax exempt yields directly to taxable yields unless there is no tax for you, in which case most people would not buy a tax exempt fund. Secondly I wouldn't use either fund for a period of two years if you really mean you want the money back exactly in two years pretty ...
by dbr
Mon Jun 18, 2018 5:28 pm
Forum: Investing - Help with Personal Investments
Topic: How do folks pull retirement income out of Wellesley?
Replies: 8
Views: 1033

Re: How do folks pull retirement income out of Wellesley?

I don't own Wellesley, but the above replies are pretty much the system. If the holding is in a taxable account then normally one just directs the distributions to some settlement fund or directly to one's checking account or whatever and ultimately they are spent. If one want to withdraw more one s...
by dbr
Mon Jun 18, 2018 2:31 pm
Forum: Investing - Theory, News & General
Topic: What does it mean: Rule No. 1: Never lose money
Replies: 62
Views: 3943

Re: What does it mean: Rule No. 1: Never lose money

I'm not so willing to entirely discount anything WB attaches importance to, and he repeats this 'rule' with gusto in the recent biographic documentary. In simpler terms, I think he meant to be "risk averse", (rather than "loss averse"). The latter term is the more common understanding of the words ...
by dbr
Mon Jun 18, 2018 2:27 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Analysis & Incorporating Excess Cash
Replies: 6
Views: 557

Re: Portfolio Analysis & Incorporating Excess Cash

i [*] My company is currently going through a buyout, and this will be bringing in a small windfall as noted at the very end of the snapshot below. What would you do with this and/or the monthly excess cash mentioned above? Taxable account? Real estate? Bermuda? In general as access to wealth comes...
by dbr
Mon Jun 18, 2018 2:13 pm
Forum: Investing - Theory, News & General
Topic: What does it mean: Rule No. 1: Never lose money
Replies: 62
Views: 3943

Re: What does it mean: Rule No. 1: Never lose money

I don't like that Wiki article because it makes the wrong points and buries the more important concept deep in the article in such a way that the idea is not clear and hard to find. The best thing about a wiki is that if you think an article can and should be improved, you are able to make that hap...
by dbr
Mon Jun 18, 2018 2:12 pm
Forum: Personal Consumer Issues
Topic: Should I take possession of a certified mail?
Replies: 150
Views: 15293

Re: Should I take possession of a certified mail?

There seem to be several posts here promoting the idea that if you refuse the letter, you absolve yourself of the contents of the letter. As if ignorance of the circumstances = free from circumstances. That seems fairly far fetched to me. Are there any lawyers willing to provide chapter/verse citin...
by dbr
Mon Jun 18, 2018 2:07 pm
Forum: Investing - Theory, News & General
Topic: What does it mean: Rule No. 1: Never lose money
Replies: 62
Views: 3943

Re: What does it mean: Rule No. 1: Never lose money

... Usually "never lose money" boils down to preservation of capital and simple mathematics: A 50% loss requires a 100% gain just to break even. A 30% loss requires a 42.86% gain to break even. A 10% loss requires only a 11.11% gain to break even. ... If I may help clarify for anybody who comes acr...
by dbr
Mon Jun 18, 2018 2:04 pm
Forum: Investing - Theory, News & General
Topic: Bill Bernstein's 8:4:5:3 ratio
Replies: 21
Views: 2408

Re: Bill Bernstein's 8:4:5:3 ratio

Yes, it suggests that if one is going to put forward arbitrary set of numbers that don't have a sound rationale for being exactly what they are, A megacorp where I once worked had an employee benefit that involved some free financial planning advice from a 3rd party firm that had no stake in what i...
by dbr
Mon Jun 18, 2018 2:02 pm
Forum: Investing - Theory, News & General
Topic: What does it mean: Rule No. 1: Never lose money
Replies: 62
Views: 3943

Re: What does it mean: Rule No. 1: Never lose money

Obviously Buffett violates his own rules on a recurring basis. Usually "never lose money" boils down to preservation of capital and simple mathematics: A 50% loss requires a 100% gain just to break even. A 30% loss requires a 42.86% gain to break even. A 10% loss requires only a 11.11% gain to brea...
by dbr
Mon Jun 18, 2018 2:00 pm
Forum: Investing - Theory, News & General
Topic: What does it mean: Rule No. 1: Never lose money
Replies: 62
Views: 3943

Re: What does it mean: Rule No. 1: Never lose money

... Usually "never lose money" boils down to preservation of capital and simple mathematics: A 50% loss requires a 100% gain just to break even. A 30% loss requires a 42.86% gain to break even. A 10% loss requires only a 11.11% gain to break even. ... If I may help clarify for anybody who comes acr...
by dbr
Mon Jun 18, 2018 1:55 pm
Forum: Investing - Theory, News & General
Topic: What does it mean: Rule No. 1: Never lose money
Replies: 62
Views: 3943

Re: What does it mean: Rule No. 1: Never lose money

Mantras like that are useless for investing. We don't even know what it really means. Actually it doesn't mean anything. I have no idea what Mr. Buffett had in mind at the time he said that. The man is an astute investor, so I assume what he had in mind makes sense, but what that sense is, I have no...
by dbr
Mon Jun 18, 2018 1:37 pm
Forum: Investing - Theory, News & General
Topic: Revisiting Risk and Reward
Replies: 7
Views: 450

Re: Revisiting Risk and Reward

Nice analysis, siamond. Always enjoy your work and appreciate your sharing it on the Forum. Your article had this essential message, from my perspective: Keeping a significant engine of growth in one’s portfolio should definitely matter for most retirees. How much stock exposure to select has to be...
by dbr
Mon Jun 18, 2018 1:34 pm
Forum: Investing - Theory, News & General
Topic: Revisiting Risk and Reward
Replies: 7
Views: 450

Re: Revisiting Risk and Reward

Good job. This should probably be an article in the Wiki. It is well enough done that the content is probably ready to go. The one comment, really actually positive, but could be taken as negative and shouldn't, is that these results have been well evident for a long time to anyone that would look. ...
by dbr
Mon Jun 18, 2018 1:00 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with cash earmarked for house & business plans 2-5 years out
Replies: 2
Views: 281

Re: What to do with cash earmarked for house & business plans 2-5 years out

More return means more risk and more uncertainty in planning means more risk whether in opportunity cost or in the realization of bad outcomes. The general answer is that there is no solution to this dilemma. It is just a matter of making choices. I personally would be content with lower returns and...
by dbr
Mon Jun 18, 2018 12:33 pm
Forum: Personal Consumer Issues
Topic: A vehicle that "sits up" but can't afford CRV
Replies: 63
Views: 4947

Re: A vehicle that "sits up" but can't afford CRV

Last time I looked I'm not a short older woman. I think lots of people prefer the higher driving position in SUVs. It's a visibility thing. I also like being able to enter and exit without bending over or grabbing the pillars to haul myself out. Since moving to an SUV several years ago, I can't ima...
by dbr
Mon Jun 18, 2018 12:29 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Balanced Index Fund Admiral Shares (VBIAX)
Replies: 22
Views: 1863

Re: Vanguard Balanced Index Fund Admiral Shares (VBIAX)

^ Nothing beats actually looking at what is going to happen for a plan that makes sense to the investor.
by dbr
Mon Jun 18, 2018 11:55 am
Forum: Investing - Help with Personal Investments
Topic: rsu & iso [Restricted Stock Unit & Incentive Stock Option]
Replies: 9
Views: 580

Re: rsu & iso [Restricted Stock Unit & Incentive Stock Option]

I would tend to follow the rule of not putting outside cash into company stock for any hoped for tax reduction. It is one thing to not optimize the leverage on an ISO but another thing to lose real money holding company stock. One issue is the relative magnitude. If ISO is a dribble of regular incom...
by dbr
Mon Jun 18, 2018 11:48 am
Forum: Personal Consumer Issues
Topic: A vehicle that "sits up" but can't afford CRV
Replies: 63
Views: 4947

Re: A vehicle that "sits up" but can't afford CRV

Amusing how all the people who seem to be obsessed with sitting up high always seem to be tailgaters. They feel the need to "see over" the vehicles in front of them because they're so close that the vehicle in front would otherwise comprise a good 1/3 of their total visual area. Maintaining a safe ...
by dbr
Mon Jun 18, 2018 11:37 am
Forum: Investing - Theory, News & General
Topic: Bill Bernstein's 8:4:5:3 ratio
Replies: 21
Views: 2408

Re: Bill Bernstein's 8:4:5:3 ratio

WildBill wrote:
Mon Jun 18, 2018 11:08 am
Howdy

I of course follow the historically sound and mathematically proven “square number” asset allocation strategy.

Equities 64%, 8x8

Fixed income 36%, 6x6

Foreign equities 25% of equity allocation, of course 5x5

Happy numerology :moneybag 8-)

W B
Cool. Thank you so much.
by dbr
Mon Jun 18, 2018 11:13 am
Forum: Investing - Theory, News & General
Topic: Bill Bernstein's 8:4:5:3 ratio
Replies: 21
Views: 2408

Re: Bill Bernstein's 8:4:5:3 ratio

Also, it is known that all such numbers should be prime numbers and the presence of 8 and 4 pretty much invalidates the suggestion. Wikipedia's definition: "Prime number (or a prime) is a natural number greater than 1 that cannot be formed by multiplying two smaller natural numbers." dbr: Why shoul...
by dbr
Mon Jun 18, 2018 11:00 am
Forum: Personal Consumer Issues
Topic: iPad Pro 12.9": Replacement for Laptop?
Replies: 28
Views: 2117

Re: iPad Pro 12.9": Replacement for Laptop?

My laptop and iPad are for different purposes. The iPad is my most personal device. I use t a LOT. Browsing, email, etc. light duty things. The laptop is for more strenuous work. Programming, weaving software, spreadsheets. Anything which is more CPU intensive. For me the small iPad Pro would be be...
by dbr
Mon Jun 18, 2018 10:44 am
Forum: Investing - Theory, News & General
Topic: A different theoretical view of SWR
Replies: 61
Views: 3328

Re: A different theoretical view of SWR

All attempts to identify a safe withdrawal rate are subject to uncertainty of various kinds. There is a notable lack of systematic investigation of how much that uncertainty is. The exercise is also misleading in that we know that number is hugely affected by the starting date of the retirement. Any...
by dbr
Mon Jun 18, 2018 10:22 am
Forum: Investing - Theory, News & General
Topic: Bill Bernstein's 8:4:5:3 ratio
Replies: 21
Views: 2408

Re: Bill Bernstein's 8:4:5:3 ratio

Also, it is known that all such numbers should be prime numbers and the presence of 8 and 4 pretty much invalidates the suggestion. Wikipedia's definition: "Prime number (or a prime) is a natural number greater than 1 that cannot be formed by multiplying two smaller natural numbers." dbr: Why shoul...
by dbr
Mon Jun 18, 2018 10:10 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Balanced Index Fund Admiral Shares (VBIAX)
Replies: 22
Views: 1863

Re: Vanguard Balanced Index Fund Admiral Shares (VBIAX)

Is Vanguard Balanced Index Fund Admiral Shares (VBIAX) a horrible choice for a taxable account? Hi TheTimeLord - Ideally a balance fund is not preferred for a taxable account because any distributions from he bonds portfolio of the fund would be taxed at an investors ordinary income tax rate. Howev...
by dbr
Mon Jun 18, 2018 10:05 am
Forum: Investing - Help with Personal Investments
Topic: Kid's Online Access for Kid's Brokerage Accounts
Replies: 9
Views: 741

Re: Kid's Online Access for Kid's Brokerage Accounts

Brokers supply monthly reports. Paying a little, if any, to get a copy in snail mail might be an option if one wants the child to be aware of what is there. It could be a good education. I do not subscribe to the do not peek idea. Looking frequently can be combined with education in not messing with...
by dbr
Mon Jun 18, 2018 10:03 am
Forum: Investing - Help with Personal Investments
Topic: Planning to buy a home in California
Replies: 8
Views: 689

Re: Planning to buy a home in California

The best way to hedge against increases in pricing is to buy the house now. You don't need to manage the property, that's what property managers are for. That seems logical to me. The only result of combining real estate market risk and investment risk is for the total to compound to even more risk...
by dbr
Mon Jun 18, 2018 9:56 am
Forum: Investing - Theory, News & General
Topic: Is individual Bonds better than Bond Fund?
Replies: 17
Views: 747

Re: Is individual Bonds better than Bond Fund?

IIRC Suze Orman owns only bonds, no stocks? (but says most people should have stocks) In that case and with that level of assets I think it's more justified for at least some money. I'm not really familiar with the rationales and whatever she talks about, and my impression is that many people like ...
by dbr
Mon Jun 18, 2018 9:42 am
Forum: Investing - Theory, News & General
Topic: Is individual Bonds better than Bond Fund?
Replies: 17
Views: 747

Re: Is individual Bonds better than Bond Fund?

Suze has a lot of good advice; this is one thing I think she spreads too much FUD about. There are some reasons to hold a bond ladder (e.g., liability matching portfolio); however, more generally, a diversified bond fund is excellent. Yes, FUD is exactly what it is. This is not a service to anyone.