Search found 26860 matches

by dbr
Sun Jun 17, 2018 4:36 pm
Forum: Investing - Help with Personal Investments
Topic: Take Advantage of Stable Value Fund?
Replies: 20
Views: 798

Re: Take Advantage of Stable Value Fund?

For a person long term 90% equities long term bonds, especially Treasuries, make perfect sense. Even if there is not some convincing proof that the choice is superior, it should be fine. A possibility is that if one wanted to cut down on the stock allocation a stable value fund could the place for t...
by dbr
Sun Jun 17, 2018 3:32 pm
Forum: Investing - Help with Personal Investments
Topic: STAR vs. 3-Fund Portfolio
Replies: 3
Views: 186

Re: STAR vs. 3-Fund Portfolio

You don't have a reliable basis for asserting anything has "outperformed" something else. FWIW Portfolio Visualizer comparing your two options since 1993 shows Star to have a slightly higher CAGR, a slightly higher standard deviation of annual returns, and identical Sharpe and Sortino ratios. In sho...
by dbr
Sun Jun 17, 2018 3:20 pm
Forum: Investing - Help with Personal Investments
Topic: Please help with RMDs and asset allocation
Replies: 2
Views: 209

Re: Please help with RMDs and asset allocation

A general idea about withdrawing from investments is to use the withdrawal to point the asset allocation back to target. That does require looking at where things are and calculating how much to withdraw from what.
by dbr
Sun Jun 17, 2018 2:56 pm
Forum: Investing - Theory, News & General
Topic: Why is risk adjusted return important?
Replies: 35
Views: 2367

Re: Why is risk adjusted return important?

I'm answering someone's question. Other people will have to tell me what you do with it. If risk adjusted return could provide a one-size-fits-all answer to "pay debt vs. invest," that would be significant. I guess my idea is that risk adjusted return (M-M model) would be helpful to understand that...
by dbr
Sun Jun 17, 2018 9:56 am
Forum: Investing - Help with Personal Investments
Topic: calculator to get to desire $$$
Replies: 15
Views: 947

Re: calculator to get to desire $$$

It sounds like it is almost immaterial what happens to your portfolio as far as a successful retirement, i.e. being able to pay bills and have some fun. One question I have is you said you have a number in mind that you would like to be at in 6 years. What is that number based on what you have now?...
by dbr
Sun Jun 17, 2018 9:55 am
Forum: Investing - Help with Personal Investments
Topic: Take Advantage of Stable Value Fund?
Replies: 20
Views: 798

Re: Take Advantage of Stable Value Fund?

Generally stable value funds are not quoted with expenses, so this is a completely different animal than I'm used to. Normally the stated yield is net of everything so you just don't care about or even want to know the expense ratio. You might have a fee for your plan separate from your investment ...
by dbr
Sun Jun 17, 2018 9:52 am
Forum: Investing - Help with Personal Investments
Topic: calculator to get to desire $$$
Replies: 15
Views: 947

Re: calculator to get to desire $$$

Or just do the math in a spreadsheet or a scientific calculator. Of course the formula depends on what you're assuming and what you want to know. It sounds like you know "Dollars Now" and "Future Target". If you assume a certain growth "Rate" and want to know how many "Years" it will take to reach ...
by dbr
Sun Jun 17, 2018 9:50 am
Forum: Investing - Help with Personal Investments
Topic: calculator to get to desire $$$
Replies: 15
Views: 947

Re: calculator to get to desire $$$

I entered the information into Firecal.com. The result show zero chance of running out of money. I did not including SS or pension. The question for me is I have a pension that covers my expenses. I just figure to let the portfolio grow for the next 6 years and then start using some of the interest...
by dbr
Sun Jun 17, 2018 9:43 am
Forum: Investing - Theory, News & General
Topic: Why is risk adjusted return important?
Replies: 35
Views: 2367

Re: Why is risk adjusted return important?

Possibly this method is corresponds best to the idea of "What return would I have if the risk were the same as something else I am comparing it to?": https://en.wikipedia.org/wiki/Modigliani_risk-adjusted_performance Based on that article, the Modigliani risk adjusted return of VTSAX (or similar to...
by dbr
Sun Jun 17, 2018 8:59 am
Forum: Investing - Help with Personal Investments
Topic: How much tilt is enough to make a difference?
Replies: 19
Views: 1212

Re: How much tilt is enough to make a difference?

Alexa9 wrote:
Sun Jun 17, 2018 8:57 am
I like a 50% tilt
25% each: VTI, VXUS, VBR, VSS
It may do better or worse, but at least I won't have near half my portfolio in Mega Caps.
Isn't your analysis 9x11? How close to that are you?
by dbr
Sun Jun 17, 2018 8:56 am
Forum: Investing - Theory, News & General
Topic: Why is risk adjusted return important?
Replies: 35
Views: 2367

Re: Why is risk adjusted return important?

Really basic question here. How do you determine the risk adjustedreturn of a fund? P.S. inestopedia gives the following. https://www.investopedia.com/terms/r/riskadjustedreturn.asp Possibly this method is corresponds best to the idea of "What return would I have if the risk were the same as someth...
by dbr
Sun Jun 17, 2018 8:50 am
Forum: Investing - Help with Personal Investments
Topic: Wanting to learn: seeking approval or criticism on my portfolio
Replies: 12
Views: 1080

Re: Wanting to learn: seeking approval or criticism on my portfolio

A pension is not a bond. The effect of having income from a pension can be considered in your need, ability, and willingness to take risk. The possibility of cashing out can be taken into account as a possible scenario for increased assets and less income at the time. Those assets are not necessaril...
by dbr
Sun Jun 17, 2018 8:42 am
Forum: Investing - Help with Personal Investments
Topic: Take Advantage of Stable Value Fund?
Replies: 20
Views: 798

Re: Take Advantage of Stable Value Fund?

Since you have a 30 year time horizon, i would not consider this fund choice. This fund will most likely not keep up with the inflation rate over the next 30 years. Consider yourself lucky to have such a good employer plan. Do you know that to be true? SV fund yields tend to be similar to intermedi...
by dbr
Sun Jun 17, 2018 8:40 am
Forum: Personal Consumer Issues
Topic: iPad Pro 12.9": Replacement for Laptop?
Replies: 21
Views: 1399

Re: iPad Pro 12.9": Replacement for Laptop?

I would say no. In my world a desktop, a larger iPad, an iPad mini, a Kindle, and an iPhone all serve their own purposes and are not interchangeable. Which one's go where at any time is always a choice to be addressed. I suspect the advocates of a real laptop probably have a point, but I don't have ...
by dbr
Sun Jun 17, 2018 8:32 am
Forum: Investing - Help with Personal Investments
Topic: Take Advantage of Stable Value Fund?
Replies: 20
Views: 798

Re: Take Advantage of Stable Value Fund?

If your IPS is as specific as to need to be changed so you can invest in a stable value fund rather than Treasuries, then I would say your IPS is over-specified. Yes, stable value funds are reasonable alternatives in 401k plans and one reason some 401k plans might be better than all available altern...
by dbr
Sun Jun 17, 2018 8:29 am
Forum: Investing - Help with Personal Investments
Topic: Adding U.S. Growth Fund Investor Shares (VWUSX) to portfolio
Replies: 4
Views: 337

Re: Adding U.S. Growth Fund Investor Shares (VWUSX) to portfolio

Hello everyone, My current portfolio is: 40% stock and 60% bond/CD 40% stock (taxable + non-taxable) = 80% Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) and 20% Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) I am planning to increase the proportion of large-cap...
by dbr
Sun Jun 17, 2018 8:17 am
Forum: Personal Consumer Issues
Topic: Anyone live in (or familiar with) John Knox Village in Kansas City?
Replies: 1
Views: 331

Re: Anyone live in (or familiar with) John Knox Village in Kansas City?

I'm thinking about looking at John Knox Village senior independent living community in Kansas City. Wondering what it's like to live there and what kind of $$ we're talking about. Would appreciate any input. I know nothing about them, but I do know that if you want to know what it will cost you to ...
by dbr
Sun Jun 17, 2018 8:06 am
Forum: Investing - Help with Personal Investments
Topic: CD ladders vs bond funds
Replies: 5
Views: 654

Re: CD ladders vs bond funds

Why are you concerned about the exact risk in fixed income? Are you in a position where you are depending on exactly what happens to a very large amount of money with significant consequences for small differences in exactly what return materializes in the near term? Or, is your position that you ar...
by dbr
Sun Jun 17, 2018 8:00 am
Forum: Personal Consumer Issues
Topic: A vehicle that "sits up" but can't afford CRV
Replies: 41
Views: 3233

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

99% of people are confused with seating position, you want to be as low as possible looking as far out and up as possible. Look for cars with great visibility, which has nothing to do with car height or sitting up as you put it. Lots of compact SUVs I've sat in have terrible A-pillar blind spots. H...
by dbr
Sun Jun 17, 2018 7:52 am
Forum: Investing - Help with Personal Investments
Topic: High Dividend Stocks as bond substitute?
Replies: 36
Views: 2912

Re: High Dividend Stocks as bond substitute?

If you want to hold stocks and not bonds, then that is up to you, but please don't try to think some stocks are bonds. It is no more complicated than that.
by dbr
Sat Jun 16, 2018 2:12 pm
Forum: Personal Finance (Not Investing)
Topic: Tracking spending before retirement useful for estimating retirement expenses?
Replies: 35
Views: 1739

Re: Tracking spending before retirement useful for estimating retirement expenses?

It was absolutely useful. It was not sufficient because some things changed. It is certainly most helpful information as long as you are paying attention to what you are looking at. It will tell you what some items are going to be and it won't tell you what some other items are going to be.
by dbr
Sat Jun 16, 2018 1:23 pm
Forum: Investing - Theory, News & General
Topic: Flaw in Logic? CD ladder instead of bond funds
Replies: 60
Views: 3652

Re: Flaw in Logic? CD ladder instead of bond funds

I have bonds funds in my retirement accounts. However, in taxable I have a 5 year CD ladder. I've set it up to provide cash between retirement and RMDs at 70. Each year some CDs will mature and I will use that to replenish my cash holdings. If I have left over cash, which I expect, I'll either roll...
by dbr
Sat Jun 16, 2018 1:11 pm
Forum: Investing - Theory, News & General
Topic: A different theoretical view of SWR
Replies: 40
Views: 1994

Re: A different theoretical view of SWR

From a theoretical perspective I've come to believe that over the long term reasonable investments in stocks and bonds ultimately serve to accomplish one major feat. They help a portfolio combat inflation. Given a 30-year retirement period this yields a SWR of 3.33%. SWRs can easily be calculated f...
by dbr
Sat Jun 16, 2018 12:26 pm
Forum: Personal Consumer Issues
Topic: A vehicle that "sits up" but can't afford CRV
Replies: 41
Views: 3233

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

It would help to know what she can afford since that is the actual problem.
by dbr
Sat Jun 16, 2018 10:32 am
Forum: Investing - Theory, News & General
Topic: Which boglehead rule do you break--and are ok with
Replies: 113
Views: 6806

Re: Which boglehead rule do you break--and are ok with

Very interesting thread to follow so figured why not chime in: 1. At age 24, hold way more cash than recommended (lot of big purchases upcoming - wedding, down payment, etc) 2. Hold 10% bonds in Roth IRA due to Target Date in 401K and size/growth with contributions to each respective account 3. Wil...
by dbr
Sat Jun 16, 2018 10:31 am
Forum: Investing - Help with Personal Investments
Topic: VCAIX - shorter term alternatives?
Replies: 4
Views: 368

Re: VCAIX - shorter term alternatives?

Do you know the reasoning for that advice? Does the "advice" apply to you? A good alternative to VCAIX might be VCAIX. There is a CA tax exempt MM fund at Vanguard.
by dbr
Sat Jun 16, 2018 10:27 am
Forum: Investing - Help with Personal Investments
Topic: Using Wellesley Fund as a bond alternative
Replies: 18
Views: 2029

Re: Using Wellesley Fund as a bond alternative

The Wellesley fund is 65% bonds. Therefore, you can use it for your bond holdings, as long as the amount you want to hold in bonds is 65% of the fund balance. However, I don't like the fund in a taxable account. The stock turnover is fairly high, leading to large capital gains. And both the stocks ...
by dbr
Sat Jun 16, 2018 10:11 am
Forum: Investing - Help with Personal Investments
Topic: How much tilt is enough to make a difference?
Replies: 19
Views: 1212

Re: How much tilt is enough to make a difference?

Considering that the dependence on factor loadings is continuous the issue depends on the definition of difference. I suppose one criterion for that is when all the outcomes as a function of some factor loading exceed all the outcomes should one have zero loading. Since that never happens the answer...
by dbr
Sat Jun 16, 2018 10:06 am
Forum: Investing - Help with Personal Investments
Topic: Should fixed income allocation necessarily change over the years?
Replies: 11
Views: 637

Re: Should fixed income allocation necessarily change over the years?

When you say things like "necessity" you are assuming far more certainty about how things might happen than even remotely exists. Retirement withdrawal security is not very dependent on asset allocation. People do wonder and investigate whether or not it is helpful to mess around with asset allocati...
by dbr
Sat Jun 16, 2018 9:48 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Managed Payout Fund
Replies: 29
Views: 2333

Re: Vanguard Managed Payout Fund

The "auto-pilot" features of this fund are nice. It's one less thing I have to worry about or discuss helping older family manage their money. Most brokers or mutual fund companies will arrange to make periodic fixed withdrawals from a holding. I don't think you have to buy a quirky fund to do that...
by dbr
Sat Jun 16, 2018 9:42 am
Forum: Investing - Theory, News & General
Topic: Which boglehead rule do you break--and are ok with
Replies: 113
Views: 6806

Re: Which boglehead rule do you break--and are ok with

Skipped a couple of principles: As a consumer: 1. Bought two new cars in the last 6 years and one was expensive. However, my behavior is still boglehead as I still own them and plan on keeping them. BTW I lend out the Nissan Leaf on http://turo.com/ and so I make a little money on the side. 2. Have...
by dbr
Fri Jun 15, 2018 4:51 pm
Forum: Personal Consumer Issues
Topic: I am STUNNED over how much help my friends recieved with house purchase!
Replies: 47
Views: 3568

Re: I am STUNNED over how much help my friends recieved with house purchase!

The one lesson in my experience, which might be called shocking, was how much money some people have. That was a new experience for us. We are more used to that now.
by dbr
Fri Jun 15, 2018 4:48 pm
Forum: Personal Finance (Not Investing)
Topic: How to find a good CPA?
Replies: 8
Views: 550

Re: How to find a good CPA?

Most likely you just need to supply missing data, quite possibly the cost basis.

Should it happen you want professional help you probably want to find an Enrolled Agent (EA) as this kind of accountant can actually represent you to the IRS. But that is in the last resort. Just write to them first.
by dbr
Fri Jun 15, 2018 4:38 pm
Forum: Personal Finance (Not Investing)
Topic: Savings rate to achieve retirement goals?
Replies: 10
Views: 1032

Re: Savings rate to achieve retirement goals?

You need $1,750,000 at a 4% draw to obtain $70K + $30K Social Security. You have $400K today, at a 5% growth rate, you need to contribute $7,027 per MONTH for exactly 120 months [f]or 10 years. You have $400K today, at a 5% growth rate, you need to contribute $3,834.05 per MONTH for exactly 180 mon...
by dbr
Fri Jun 15, 2018 4:33 pm
Forum: Personal Consumer Issues
Topic: I am STUNNED over how much help my friends recieved with house purchase!
Replies: 47
Views: 3568

Re: I am STUNNED over how much help my friends recieved with house purchase!

........ I told my wife about this and she just said "Don't be jealous!" And I was like, "No, I'm the opposite of that!" I'm not jealous at all!" ........ * How much money have you given your kid(s) for their house purchase? * How much money should you give your child for this purpose? * Should you...
by dbr
Fri Jun 15, 2018 4:18 pm
Forum: Personal Consumer Issues
Topic: A vehicle that "sits up" but can't afford CRV
Replies: 41
Views: 3233

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

If she can't afford a new car, then she buys a used car. Did you mean she can't afford the "price point" of a used but newer CRV? If that is the case, then probably she can't afford to replace the car at all. What is the price point that is affordable? You have to know that to know where to start. F...
by dbr
Fri Jun 15, 2018 4:13 pm
Forum: Personal Consumer Issues
Topic: I am STUNNED over how much help my friends recieved with house purchase!
Replies: 47
Views: 3568

Re: I am STUNNED over how much help my friends recieved with house purchase!

There are no shoulds. There are people whose parents have a lot of money and those parents give some of it to their kids more or less, sooner or later. I know a guy who had millions who gave his kids millions for their homes, businesses, etc., so your acquaintances are actually on the cheap end. The...
by dbr
Fri Jun 15, 2018 3:45 pm
Forum: Investing - Theory, News & General
Topic: Which boglehead rule do you break--and are ok with
Replies: 113
Views: 6806

Re: Which boglehead rule do you break--and are ok with

Skipped a couple of principles: As a consumer: 1. Bought two new cars in the last 6 years and one was expensive. However, my behavior is still boglehead as I still own them and plan on keeping them. BTW I lend out the Nissan Leaf on http://turo.com/ and so I make a little money on the side. 2. Have...
by dbr
Fri Jun 15, 2018 3:42 pm
Forum: Personal Finance (Not Investing)
Topic: Savings rate to achieve retirement goals?
Replies: 10
Views: 1032

Re: Savings rate to achieve retirement goals?

More comprehensive retirement planners allow you to see the uncertainty due to the fact that returns are not predictable for most investments, nor is inflation.
by dbr
Fri Jun 15, 2018 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: Savings rate to achieve retirement goals?
Replies: 10
Views: 1032

Re: Savings rate to achieve retirement goals?

Retirement planners include the ability to start before you are retired and enter the annual savings, etc. to see the outcome.

https://www.bogleheads.org/wiki/Retirem ... d_spending
by dbr
Fri Jun 15, 2018 3:04 pm
Forum: Investing - Theory, News & General
Topic: Flaw in Logic? CD ladder instead of bond funds
Replies: 60
Views: 3652

Re: Flaw in Logic? CD ladder instead of bond funds

You are debating over two alternatives that are not different for the purpose. Don't waste time and energy over it.
by dbr
Fri Jun 15, 2018 1:09 pm
Forum: Investing - Help with Personal Investments
Topic: Quick question about vangaurd settlement fund
Replies: 4
Views: 389

Re: Quick question about vangaurd settlement fund

Would it be better to put a certain amount of money in either a settlement account currently at 1.75% or Long term treasury at 2.9% if I may need access to it within the next year or at least part of it. Part of the money is an emergency fund. The other is money I have saved to pay of a commercial ...
by dbr
Fri Jun 15, 2018 10:08 am
Forum: Investing - Theory, News & General
Topic: Which boglehead rule do you break--and are ok with
Replies: 113
Views: 6806

Re: Which boglehead rule do you break--and are ok with

Where to begin? (1)-Own 10% of my portfolio in gold. (2)-I prefer owning individual bonds (TIPs and CD ladders) to Total Bond fund. Clearly individual Treasuries and CDs are an exception to the index fund rule. (3)-Will occasionally market time. Received a large inheritance in the spring of 2017, i...
by dbr
Fri Jun 15, 2018 10:06 am
Forum: Investing - Theory, News & General
Topic: Which boglehead rule do you break--and are ok with
Replies: 113
Views: 6806

Re: Which boglehead rule do you break--and are ok with

We probably break #3 above because our 30-year mortgage (PITI) is 35% of take home pay: after taxes, 401k, and HSA/FSA (which is spent). No, that is #2 if the consequence is that you are not saving and investing, but you aren't saying that. Anyway, contrary to some people's opinion, building equity...
by dbr
Fri Jun 15, 2018 10:03 am
Forum: Investing - Theory, News & General
Topic: Which boglehead rule do you break--and are ok with
Replies: 113
Views: 6806

Re: Which boglehead rule do you break--and are ok with

Most of ours are what I'd call "strategic lifestyle creep" - living in Manhattan in our 30s, combined income of just under $700k (which has nearly doubled in last 3 years), with plans to try for kids in near future and sowing some wild oats with travel prior to that. Namely: 1. I pay to have my car...
by dbr
Fri Jun 15, 2018 9:58 am
Forum: Investing - Help with Personal Investments
Topic: Individual stocks in a traditional IRA
Replies: 5
Views: 343

Re: Individual stocks in a traditional IRA

The general answer regarding individual stocks is that they are riskier for the return than a diversified collection of stocks that would get the same return on average. This is called diversifiable risk and eliminating it is one of the free lunches available in investing. Therefore when you can sel...
by dbr
Fri Jun 15, 2018 9:55 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Managed Payout Fund
Replies: 29
Views: 2333

Re: Vanguard Managed Payout Fund

But just to clarify, one final question: I can get out of this fund anytime I want, right? In other words, if I don't like the payouts or reduction in principal, I can just switch the funds to an index fund or something.....correctomundo? Yes, but if it is in a taxable account there will be a capit...
by dbr
Fri Jun 15, 2018 9:53 am
Forum: Investing - Theory, News & General
Topic: Which boglehead rule do you break--and are ok with
Replies: 113
Views: 6806

Re: Which boglehead rule do you break--and are ok with

I use actually dollar amounts and years of expenses in calculating how much to put in equities versus fixed income instead of percentage based AA now that I have achieved FI and can see retirement on the horizon. That isn't a violation of any Boglehead rule or principle at all. It is in accord with...
by dbr
Fri Jun 15, 2018 9:24 am
Forum: Investing - Theory, News & General
Topic: Which boglehead rule do you break--and are ok with
Replies: 113
Views: 6806

Re: Which boglehead rule do you break--and are ok with

Cars. I actually bought a replacement car for my wife yesterday. We were going to buy either a Subaru Impreza or Crosstrek because they're cheap, AWD and cheap on gas. After a couple recent trips with both our kids (17 and 21), in our Crosstrek and my Wrangler, I made the executive decision that it...
by dbr
Fri Jun 15, 2018 9:22 am
Forum: Investing - Theory, News & General
Topic: Which boglehead rule do you break--and are ok with
Replies: 113
Views: 6806

Re: Which boglehead rule do you break--and are ok with

I'm a pretty strict boglehead. The one guide I don't do is a written out directive Investment Plan Statement. There's no Boglehead rule saying you have to have a written out IPS. There aren't really any Boglehead rules. The closest things are the Bogleheads principles: https://www.bogleheads.org/wi...