Search found 25302 matches

by dbr
Thu Feb 22, 2018 7:13 pm
Forum: Investing - Theory, News & General
Topic: Terminology question: what does "losing money" mean?
Replies: 53
Views: 1490

Re: Terminology question: what does "losing money" mean?

It is time for nisiprius to let us in on what the question really is. My question was whether people agree with me that the phrase "losing money" means "to have a small number of dollars at the end of a time period." It does not mean "to have a lower inflation-adjusted real value," nor does it mean...
by dbr
Thu Feb 22, 2018 7:11 pm
Forum: Investing - Help with Personal Investments
Topic: Rick Ferri Fixed Income Portfolio Funds
Replies: 4
Views: 671

Re: Rick Ferri Fixed Income Portfolio Funds

I have a 50% intermediate bond and 50% TIPS allocation in fixed income. How it has done is that it has/will moderate the volatility of the overall portfolio at the cost of reduced expected return. I have no idea what the comparison would have been to not having TIPS or adding junk bonds. Estimates o...
by dbr
Thu Feb 22, 2018 7:01 pm
Forum: Investing - Theory, News & General
Topic: Terminology question: what does "losing money" mean?
Replies: 53
Views: 1490

Re: Terminology question: what does "losing money" mean?

Everyone agrees the three funds lost purchasing power over the time period but I don't believe that is ever what the expression "losing money" means. When inflation is taken into account people invariably refer to purchasing power or qualify statements with the word "real" as in real return, in real...
by dbr
Thu Feb 22, 2018 6:50 pm
Forum: Investing - Theory, News & General
Topic: Terminology question: what does "losing money" mean?
Replies: 53
Views: 1490

Re: Terminology question: what does "losing money" mean?

It is time for nisiprius to let us in on what the question really is.
by dbr
Thu Feb 22, 2018 6:48 pm
Forum: Investing - Theory, News & General
Topic: Terminology question: what does "losing money" mean?
Replies: 53
Views: 1490

Re: Terminology question: what does "losing money" mean?

None of the funds lost money. They only made what money got paid out in dividends. YOU lost money to purchase them. They're not made of money, they're made of securities. You spent money to buy them. You COULD sell them for money and it's easy to check the open market for what you'd get at any give...
by dbr
Thu Feb 22, 2018 6:46 pm
Forum: Investing - Theory, News & General
Topic: Terminology question: what does "losing money" mean?
Replies: 53
Views: 1490

Re: Terminology question: what does "losing money" mean?

i wonder if all the recent emergency fund threads had anything to do with this :wink: i pick between 2 or 3. IMO any discussion that doesn't take inflation into account is misleading at best and wrong at worst. I agree. That is why terminology using the expression "did/didn't lose money" is mislead...
by dbr
Thu Feb 22, 2018 6:43 pm
Forum: Investing - Theory, News & General
Topic: Terminology question: what does "losing money" mean?
Replies: 53
Views: 1490

Re: Terminology question: what does "losing money" mean?

If you are talking about "losing money" as normally used the answer is:

"None of the funds lost money by the end of the ten year period."
by dbr
Thu Feb 22, 2018 9:39 am
Forum: Investing - Help with Personal Investments
Topic: Diversification
Replies: 3
Views: 256

Re: Diversification

A balance of total US and total International is perfectly well diversified. Taking sector bets is not recommended. You are already bought in on factor investing, which is plenty enough asset allocation scheming for anyone.
by dbr
Thu Feb 22, 2018 9:30 am
Forum: Personal Consumer Issues
Topic: Recessed 4 inch LEDs: Recommended brands
Replies: 25
Views: 1120

Re: Recessed 4 inch LEDs: Recommended brands

I have Feit 2700k bulbs in all the recessed fixtures as well as others throughout my home. Most are on dimmers. I am very happy with the bulbs themselves and the color which changes very little as they are dimmed. For some shifting the color temp down with dimming was a feature which has been lost ...
by dbr
Thu Feb 22, 2018 9:29 am
Forum: Investing - Help with Personal Investments
Topic: Minimum Holding Period for Short Term Corporate Bond ETF
Replies: 4
Views: 219

Re: Minimum Holding Period for Short Term Corporate Bond ETF

Or a day, a week, a month. The point is that interest rates have to change for the fund to lose NAV and very much change is unlikely in a very short period of time. The truth is that you can't make sense of this calculation without a quantitative estimate of future interest rates day by day for howe...
by dbr
Thu Feb 22, 2018 9:14 am
Forum: Personal Consumer Issues
Topic: Recessed 4 inch LEDs: Recommended brands
Replies: 25
Views: 1120

Re: Recessed 4 inch LEDs: Recommended brands

I have Feit 2700k bulbs in all the recessed fixtures as well as others throughout my home. Most are on dimmers. I am very happy with the bulbs themselves and the color which changes very little as they are dimmed. For some shifting the color temp down with dimming was a feature which has been lost ...
by dbr
Thu Feb 22, 2018 9:08 am
Forum: Investing - Theory, News & General
Topic: Rising Bond Yields
Replies: 5
Views: 612

Re: Rising Bond Yields

Ten years is more than than the Vanguard Intermediate Treasury fund but not by a lot. That would be a choice. Keep in mind that if you buy a 10 year bond at auction today the maturity shortens down to zero as you hold the bond. A fund maintains constant maturity. As rates increase your holding could...
by dbr
Thu Feb 22, 2018 8:55 am
Forum: Investing - Help with Personal Investments
Topic: Need to liquidate my PBA Brokerage Account
Replies: 4
Views: 202

Re: Need to liquidate my PBA Brokerage Account

The thing is.. with the market downturn that happened recently I'm unsure as to what I should do. Is it safe to liquidate right now? Would it even matter? If I understand correctly you are selling one set of investments and buying another that is pretty much the same asset allocation. Why would tha...
by dbr
Wed Feb 21, 2018 7:39 pm
Forum: Investing - Help with Personal Investments
Topic: Basic Question PCRA Sweep Account
Replies: 3
Views: 110

Re: Basic Question PCRA Sweep Account

Greetings, I recently started a new job and have a Schwab 401K with Personal Choice Retirement Account option (brokerage window). I noticed the PCRA has several options for the sweep/cash account, some are listed as "taxable" and some "non-taxable" savings and money market accounts. Since this is a...
by dbr
Wed Feb 21, 2018 7:33 pm
Forum: Investing - Theory, News & General
Topic: Retirees: The common sense withdrawal method
Replies: 137
Views: 11640

Re: Retirees: The common sense withdrawal method

I agree with you that the Withdrawal methods wiki page is in need of a serious rewrite. In particular, it should first explain that portfolio withdrawal must be considered as part of a larger retirement plan. I also think that it shouldn't prominently present constant-dollar withdrawal (commonly kn...
by dbr
Wed Feb 21, 2018 7:28 pm
Forum: Investing - Theory, News & General
Topic: Sequence of returns risk while accumulating
Replies: 65
Views: 3827

Re: Sequence of returns risk while accumulating

A lot of people seem to be fetched up on this obsession with sequence of return when in fact there are combinations of factors that determine the outcome, including in the first place what the average return was/will be. I am not sure the idea of what a "sequence of returns risk" is is completely cl...
by dbr
Wed Feb 21, 2018 10:07 am
Forum: Personal Finance (Not Investing)
Topic: Can you transfer money with TransferWise directly to Vanguard?
Replies: 9
Views: 403

Re: Can you transfer money with TransferWise directly to Vanguard?

The problem is Vanguard would need to have a checking/savings account with your name on it, which I'm pretty sure is never the case. Vanguard may have and accept bank transfers (if you manage to receive an ABA number from another CS rep), but that would be Vanguard's own bank account not your perso...
by dbr
Wed Feb 21, 2018 10:04 am
Forum: Investing - Theory, News & General
Topic: Retirees: The common sense withdrawal method
Replies: 137
Views: 11640

Re: Retirees: The common sense withdrawal method

* a tangent; forgive me. I frequently see people assert on this board that people have fluctuating income pre-retirement, so no big deal to have it post retirement. Then I think about my situation, and frankly most of my friends, and most have had ..... pretty consistent, generally increasing incom...
by dbr
Wed Feb 21, 2018 9:57 am
Forum: Investing - Theory, News & General
Topic: Quantitative value for portfolio risk?
Replies: 8
Views: 326

Re: Quantitative value for portfolio risk?

If a person wants to see numbers of various kinds one can browse around in something like PortfolioVisualizer as illustrated here: https://www.portfoliovisualizer.com/bac ... sisResults Note obvious data points such as CAGR, SD, Sharpe Ratio, etc.
by dbr
Wed Feb 21, 2018 9:51 am
Forum: Personal Finance (Not Investing)
Topic: Can you transfer money with TransferWise directly to Vanguard?
Replies: 9
Views: 403

Re: Can you transfer money with TransferWise directly to Vanguard?

I don't have a Vanguard account but I did find there are multiple web pages at Vanguard for setting up direct deposits, transfers, etc. These can only work if there is a routing number at Vanguard. I call BS on the CS. Seemingly the ABA is the routing number is it not? You might check your Vanguard ...
by dbr
Wed Feb 21, 2018 9:40 am
Forum: Investing - Theory, News & General
Topic: Quantitative value for portfolio risk?
Replies: 8
Views: 326

Re: Quantitative value for portfolio risk?

Age in bonds is one such number. There is little agreement on that. How would a different measure help? Let's not complicate this. It is complicated because the person asking has to figure out what he wants to know before the question can be answered. The word "risk" without discussion is meaningle...
by dbr
Wed Feb 21, 2018 9:39 am
Forum: Investing - Theory, News & General
Topic: Quantitative value for portfolio risk?
Replies: 8
Views: 326

Re: Quantitative value for portfolio risk?

The basic approach in academic finance is that the measure of risk, also the definition of risk, is standard deviation of annual returns (or sometimes monthly, daily, etc.). There are very good reasons why this measure of risk is used. It is based on a model for the behavior of investment returns th...
by dbr
Wed Feb 21, 2018 9:23 am
Forum: Investing - Help with Personal Investments
Topic: retirement calculator - most that I've seen are missing some things
Replies: 15
Views: 1989

Re: retirement calculator - most that I've seen are missing some things

A primary lesson in all those calculators is that the input that influences the output the most is what you spend and the input to which the results are least sensitive is asset allocation. You can't asset allocate your way out of spending too much. The good news is spending can be controlled.
by dbr
Wed Feb 21, 2018 9:19 am
Forum: Investing - Theory, News & General
Topic: Can someone help me explain to my wife...?
Replies: 80
Views: 8977

Re: Can someone help me explain to my wife...?

The wife isn't arguing with me, she's just concerned and doesn't understand how one could possibly lose if you sell when you've already made a lot of money . . . See, right there she is right and you are wrong. You can't lose. The issue is that you also can't gain. So the question for her is what i...
by dbr
Wed Feb 21, 2018 9:08 am
Forum: Investing - Theory, News & General
Topic: How many of you use the "4% rule" during retirement?
Replies: 68
Views: 8177

Re: How many of you use the "4% rule" during retirement?

Retired 12/31/2017. Our initial withdrawal rate is 3.1%, with the ability to lower it to 2.6% if need be - resetting annually. As things play out, we will likely be able to “loosen the screws” considerably, but at 3.1% our budgeted post retirement spend is considerably higher than in pre-retirement...
by dbr
Wed Feb 21, 2018 9:03 am
Forum: Personal Finance (Not Investing)
Topic: Helping Mom with Taxes
Replies: 46
Views: 2351

Re: Helping Mom with Taxes

And again, she most likely will need the CPA service to satisfy the reporting requirement to her step children regarding income distributions from the B trust. Unless you want to be involved in this complicated family situation, I recommend that you continue to engage her CPA to avoid potential fut...
by dbr
Tue Feb 20, 2018 10:27 am
Forum: Investing - Help with Personal Investments
Topic: Where to park 800K cash
Replies: 7
Views: 2008

Re: Where to park 800K cash

Parking cash means parking cash. For that you don't get investment gains. The usual array of safe, low yielding parking spots is indicated. If you are going to invest again in real estate the best plan is to employ your money in real estate as soon as possible rather than parking it. If you want oth...
by dbr
Tue Feb 20, 2018 10:20 am
Forum: Investing - Help with Personal Investments
Topic: Adviser said I made a big mistake switching 403b to Aspire??
Replies: 19
Views: 1474

Re: Adviser said I made a big mistake switching 403b to Aspire??

It is already clear that you have been robbed. You might investigate whether the deferred load on that one fund phases out in time. Otherwise it might cost you 5% to sell the fund. You should do it anyway. It is probably a bad idea to mix tax accounting and getting sold investments by the same person.
by dbr
Tue Feb 20, 2018 10:09 am
Forum: Investing - Help with Personal Investments
Topic: VAIPX/TIPS: To sell or not to sell
Replies: 14
Views: 879

Re: VAIPX/TIPS: To sell or not to sell

TIPS are bonds, more specifically Treasury "bonds," They have the same default risk as any other Treasuries. They are sensitive to changes in real rather than nominal interest rates, just as other bonds are sensitive to nominal interest rates. The deal in owning TIPS is that the Treasury will increm...
by dbr
Tue Feb 20, 2018 9:59 am
Forum: Investing - Help with Personal Investments
Topic: How big is the 'Madoff risk' -- All of your money at one advisor?
Replies: 21
Views: 2428

Re: How big is the 'Madoff risk' -- All of your money at one advisor?

What do you mean "with an advisor." My investments are in the custody of the brokers with whom I have accounts. The names are like Fidelity, Schwab, etc. There isn't any advisor. Who has custody of your investments? Who buys and sells for you? It shouldn't be anyone but you. I think what you mean is...
by dbr
Tue Feb 20, 2018 9:21 am
Forum: Investing - Theory, News & General
Topic: Sequence of returns risk while accumulating
Replies: 65
Views: 3827

Re: Sequence of returns risk while accumulating

What seems lost on many, though, is that SRR is also very real for those who are still in the accumulation phase (i.e. building their portfolio before retirement). Most of the investment calculators out there demonstrate how much you would have if you invested X dollars over Y time period at Z rate...
by dbr
Mon Feb 19, 2018 6:31 pm
Forum: Investing - Theory, News & General
Topic: Sequence of returns risk while accumulating
Replies: 65
Views: 3827

Re: Sequence of returns risk while accumulating

Thanks for posting that. I often wonder why people think the sequence of returns does not matter during accumulation. It is the same math with a different sign on the withdrawals. Note there is a planning difference that you get to see the outcome before you do something rash like retiring, while in...
by dbr
Mon Feb 19, 2018 6:28 pm
Forum: Investing - Help with Personal Investments
Topic: Help! Preparing for Taxes
Replies: 8
Views: 550

Re: Help! Preparing for Taxes

I can't tell if you have sold anything yet or not. Just transferring the funds to Vanguard is not a taxable event. If your current tax accountant in (strangely) not familiar with tax issues with mutual funds, then find one that is. It is correct that Vanguard does not and should not be involved in y...
by dbr
Mon Feb 19, 2018 6:19 pm
Forum: Investing - Theory, News & General
Topic: Can someone help me explain to my wife...?
Replies: 80
Views: 8977

Re: Can someone help me explain to my wife...?

I find this interesting, so please don't construe this as my being argumentative. I have heard comments analogous to yours. primarily via this forum, several times so I wonder what triggers the behavior you are subjugated to. so bearing that in mind. do you have an IPS that you share with your advi...
by dbr
Mon Feb 19, 2018 5:18 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalancing in a Bear Market
Replies: 7
Views: 585

Re: Rebalancing in a Bear Market

What are some of the best methods for rebalancing a portfolio in a bear market? In particular, if a bear market has resulted in a decline in both equities and bonds, what’s the best method? Intuitively you don’t really want to be selling equities at all when they’re down. Would it be best to just r...
by dbr
Mon Feb 19, 2018 2:51 pm
Forum: Investing - Help with Personal Investments
Topic: What do Bogleheads think of Passive income through Dividend Stocks
Replies: 49
Views: 4624

Re: What do Bogleheads think of Passive income through Dividend Stocks

There are hundreds or maybe thousands of pages of comments on this topic on the forum. Clearly people have different opinions. My distillation of the majority opinion is that the total return, before taxes, of total stock funds is similar to diversified stock funds focused on dividends, so the main...
by dbr
Mon Feb 19, 2018 2:14 pm
Forum: Investing - Theory, News & General
Topic: Can someone help me explain to my wife...?
Replies: 80
Views: 8977

Re: Can someone help me explain to my wife...?

The whole issue hinges on not confusing strategy and outcome. As far as resolving differences in strategy, I am afraid I have no suggestions. Maybe it would work to ask for a plan from Vanguard or Fidelity, etc. But even Fidelity will use this as an opening to sell things and now the problem is to ...
by dbr
Mon Feb 19, 2018 1:03 pm
Forum: Investing - Help with Personal Investments
Topic: What do Bogleheads think of Passive income through Dividend Stocks
Replies: 49
Views: 4624

Re: What do Bogleheads think of Passive income through Dividend Stocks

I can't speak for Bogleheads in general, but my personal suggestion is that investment planning and execution is about a number of considerations in which passive income probably does not appear as an item. The primary elements of investment planning and execution are investing in low cost, diversif...
by dbr
Mon Feb 19, 2018 12:55 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Adjusting a Taxable Account
Replies: 18
Views: 858

Re: Tax Adjusting a Taxable Account

I do tax adjust my numbers as an exercise to make sure I don't drift too much from my planned AA. I tax adjust my tax deferred accounts on a marginal tax rate basis. Adjusting taxable is more difficult as you have pointed out. I do mine in an overly simplistic way which is good enough for AA consid...
by dbr
Mon Feb 19, 2018 12:25 pm
Forum: Investing - Help with Personal Investments
Topic: Transferring from Financial Advisor
Replies: 12
Views: 1237

Re: Transferring from Financial Advisor

1. At some point does it make sense to have a financial advisor? If I take it back over I would go with a 60/40 AA and put it in index funds for both retirement and taxable. My only hesitation is when you factor in tax planning, 529s, and other situations does having someone look over your finances...
by dbr
Mon Feb 19, 2018 11:42 am
Forum: Investing - Help with Personal Investments
Topic: Tax Adjusting a Taxable Account
Replies: 18
Views: 858

Re: Tax Adjusting a Taxable Account

My advice is not to bother.
by dbr
Mon Feb 19, 2018 10:40 am
Forum: Investing - Theory, News & General
Topic: Is it "cute" to invest in sector funds?
Replies: 23
Views: 1458

Re: Is it "cute" to invest in sector funds?

I would say sector investing may not be cute but it is definitely an attempt to replace a good plan with a better plan and without solid grounds to establish that it is a better plan.
by dbr
Mon Feb 19, 2018 10:39 am
Forum: Investing - Theory, News & General
Topic: Can someone help me explain to my wife...?
Replies: 80
Views: 8977

Re: Can someone help me explain to my wife...?

LOL, funniest thread topic ever. I would not want to be the one mansplaining to my wife about finances and the get caught with a market downturn thus leaving her with he biggest I-told-you-so on the planet. Good luck, you now made me grateful for my *'s indifference to all matters financial. Howeve...
by dbr
Mon Feb 19, 2018 10:30 am
Forum: Investing - Theory, News & General
Topic: How many of you use the "4% rule" during retirement?
Replies: 68
Views: 8177

Re: How many of you use the "4% rule" during retirement?

I used it as a planning tool prior to retirement and as a way to get comfortable with retiring early. I've checked my withdrawal rate the first few years and found it to be in the 2.5% range even before taking social security. I've not run out to buy a Ferrari to up my spending rate but we've sched...
by dbr
Mon Feb 19, 2018 10:09 am
Forum: Investing - Help with Personal Investments
Topic: Reinvesting RMDs
Replies: 18
Views: 2096

Re: Reinvesting RMDs

The value of a series of future payments is only infinite if the discount rate is zero, so your second paragraph is simply the result of doing math wrong. In particular either a bad assumption (zero discount rate) or incorrectly summing an infinite series. Yes, my quip made that assumption. It was ...
by dbr
Mon Feb 19, 2018 9:50 am
Forum: Investing - Theory, News & General
Topic: Using cFiresim
Replies: 14
Views: 1555

Re: Using cFiresim

Compare FIRECalc's 100% small cap value and 100% SP500 results. Look at the down side. More volatile investments give bigger up, bigger down. Isn't that all that's going on here? Is it? I was under the impression SCV has outperformed SP500 a little over the past decades. I ran the 100% allocations ...
by dbr
Sun Feb 18, 2018 1:46 pm
Forum: Investing - Help with Personal Investments
Topic: Reinvesting RMDs
Replies: 18
Views: 2096

Re: Reinvesting RMDs

The reasoning is circular. You can't use a my share/their share to do the math until you have done the math to establish that my/their is a valid model. If people want to use it as a mnemonic to remember how it comes out, I guess there is nothing terrible about that, but it is a result and not a pre...
by dbr
Sun Feb 18, 2018 11:44 am
Forum: Personal Finance (Not Investing)
Topic: Doctor wants Social Security number
Replies: 78
Views: 10636

Re: Doctor wants Social Security number

BUT, then you see the real life policy lack of common sense , where people's SS# is basically their Medicare#? Someone in a position of authority couldn't make a common sense thought? The real lack of common sense was when somebody decided Social Security Numbers where secret. At one time SSN was p...
by dbr
Sun Feb 18, 2018 11:11 am
Forum: Personal Finance (Not Investing)
Topic: Effect of spending money on appearance in career
Replies: 79
Views: 5768

Re: Effect of spending money on appearance in career

I wonder how much of this conversation is about how other people perceive a person and how much of it is about how a person perceives themselves. It is never a mistake to refresh for confidence. The suggestion above might be very helpful. Also, ask one's friends. Otherwise, it is usually a positive ...
by dbr
Sun Feb 18, 2018 11:03 am
Forum: Investing - Help with Personal Investments
Topic: Time for a short term bond etf?
Replies: 8
Views: 1026

Re: Time for a short term bond etf?

I am a little light in the bond portion of my retirement portfolio. I need to soon put about 6k into my Vanguard SEP-IRA in any case, and am wondering whether it should be BND, VCSH, BSV or something else. The rest of my bond holdings are in total/intermediate bond funds, but are in my Roth-IRA or ...