Search found 26088 matches

by dbr
Sat Apr 21, 2018 2:34 pm
Forum: Investing - Help with Personal Investments
Topic: New to Investing
Replies: 6
Views: 370

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: 791

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: 90
Views: 5974

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: 28
Views: 2179

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: 5
Views: 498

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: 478

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: 2163

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: 90
Views: 5974

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: 28
Views: 2179

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: 791

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: 893

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: 90
Views: 5974

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: 90
Views: 5974

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: 29
Views: 2165

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: 8185

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: 906

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: 906

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: 3
Views: 241

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: 26
Views: 2934

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: 22
Views: 1582

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: 159
Views: 9998

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: 9795

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: 4181

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: 7920

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: 587

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: 1971

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: 496

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: 893

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: 4181

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: 7920

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...
by dbr
Wed Apr 18, 2018 7:52 am
Forum: Personal Finance (Not Investing)
Topic: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?
Replies: 121
Views: 7920

Re: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?

How difficult it is to find somebody who did this for 50 years running and is a current BH contributor. Do we have any retirees who retired in 1968 and used 2.5% withdrawal for 50 years? Then again if you were around when inflation did run at 15% or when the DOW index lost 90% if its value in three...
by dbr
Tue Apr 17, 2018 6:47 pm
Forum: Personal Finance (Not Investing)
Topic: For those that re-invest dividends automatically...
Replies: 15
Views: 2267

Re: For those that re-invest dividends automatically...

Dividends are part of return is exactly right. The reason for that is that when we project the future growth of our investments we use estimates for return in which dividends are included by the definition of return. We would not want to count dividends twice by also adding them in as contributions....
by dbr
Tue Apr 17, 2018 6:44 pm
Forum: Personal Finance (Not Investing)
Topic: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?
Replies: 121
Views: 7920

Re: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?

Has anyone yet made a recommendation based on person experience and intuition rather than informed by models and backtests?
by dbr
Tue Apr 17, 2018 6:42 pm
Forum: Personal Finance (Not Investing)
Topic: AMEX Membership Rewards
Replies: 6
Views: 906

Re: AMEX Membership Rewards

I am willing to pay fees on the stable of cards I own firstly for the sign-up bonuses, especially when one can capture the 100,000 point varieties, and secondly for perks or discounts such as are given on certain airline cards etc. I doubt most of us can spend enough to earn back the value of fees j...
by dbr
Tue Apr 17, 2018 6:36 pm
Forum: Personal Finance (Not Investing)
Topic: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?
Replies: 121
Views: 7920

Re: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?

To add a comment, if perspective of experience is what is wanted, experience would say that the larger uncertainties are in areas other than the fate of this investing scheme. What will happen to a person over fifty years of living, even just matters of financial consequence, can be so variable, so ...
by dbr
Tue Apr 17, 2018 6:09 pm
Forum: Investing - Help with Personal Investments
Topic: Diversifying fixed income portfolio
Replies: 2
Views: 274

Re: Diversifying fixed income portfolio

Do we assume the muni funds are national and not state. If state specific I would definitely not have 40% of my portfolio in munis. I guess if national funds my feeling would be more comfort if not all the bonds were munis. I wish I could give you an analytical reason for that but I am not that spif...
by dbr
Tue Apr 17, 2018 5:59 pm
Forum: Personal Finance (Not Investing)
Topic: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?
Replies: 121
Views: 7920

Re: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?

How on earth would you arrive at that assumption for the asset allocation you propose? I don't think that I completely follow your statements. Are you asserting that a 50/50 portfolio cannot keep up with inflation, whether with or without any withdrawals from the portfolio? Are you asserting that w...
by dbr
Tue Apr 17, 2018 3:48 pm
Forum: Personal Finance (Not Investing)
Topic: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?
Replies: 121
Views: 7920

Re: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?

You seem to be extraordinarily naive about inflation. How so? Shouldn't the underlying portfolio's balance increase (over time) in an amount equal to the inflation rate (over time), such that if I were to withdraw $75K plus inflation, the net effect is zero because I would effectively still have a ...
by dbr
Tue Apr 17, 2018 8:51 am
Forum: Investing - Help with Personal Investments
Topic: "Safe" funds for a life insurance proceeds
Replies: 15
Views: 922

Re: "Safe" funds for a life insurance proceeds

It would, of course, be timely to have some discussions ahead of time regarding placement of the money when the beneficiary does get control.
by dbr
Tue Apr 17, 2018 8:50 am
Forum: Investing - Help with Personal Investments
Topic: New to board with Brighthouse Annuity question?
Replies: 9
Views: 610

Re: New to board with Brighthouse Annuity question?

I agree that assessment of an annuity requires detailed expert work. It is essentially a financial/legal opinion.

It is possible one option is a 1035 exchange to a better, meaning less costly, annuity, but even that has to come out of an analysis.
by dbr
Tue Apr 17, 2018 8:48 am
Forum: Personal Finance (Not Investing)
Topic: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?
Replies: 121
Views: 7920

Re: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?

Considering that you can buy an SPIA today that pays out at 4.6% why not distribute less than half that asset across a few insurance companies and leave the rest untouched. Panhead already suggested this and also added the possibility of buying inflation indexed annuities instead. You seem to be ext...
by dbr
Tue Apr 17, 2018 8:35 am
Forum: Investing - Theory, News & General
Topic: buying bonds
Replies: 8
Views: 647

Re: buying bonds

Why do you wish to buy individual bonds rather than simply holding a bond fund? I would ask the same. Unless you have a compelling reason for exactly the face value of the bond to become available exactly on the maturity date there is not much reason to buy a bunch of bonds rather than a bond fund....
by dbr
Mon Apr 16, 2018 5:35 pm
Forum: Investing - Theory, News & General
Topic: Some basic questions about bond index funds
Replies: 23
Views: 1905

Re: Some basic questions about bond index funds

Thanks Taylor. So basically you're saying: no one understands bonds (let alone bond funds) but it's still a good idea to invest in them anyway. Yes, Boglehead advice is to never invest in anything you don't understand except Vanguard low cost diversified mutual funds. That is not a sarcastic commen...
by dbr
Mon Apr 16, 2018 5:32 pm
Forum: Investing - Theory, News & General
Topic: Trinity Study updated to 2018
Replies: 113
Views: 9795

Re: Regular 4% withdrawals can be ridiculous.

dknightd wrote:
Mon Apr 16, 2018 5:31 pm
Taylor Larimore wrote:
Mon Apr 16, 2018 2:01 pm
Limiting withdrawals to 4% is obviously ridiculous when you are as old as I am (94).
For one thing the IRS will not allow it (assuming tax deferred accounts)
There is clearly a misunderstanding here.
by dbr
Mon Apr 16, 2018 4:27 pm
Forum: Investing - Help with Personal Investments
Topic: State income tax impact on portfolio
Replies: 1
Views: 203

Re: State income tax impact on portfolio

It is impossible to make an accurate computation of after tax performance without effectively computing your personal tax return in all its glory for each and every future year. Someone was asking about this on another thread in the last day or two and I am not sure if there was an answer for an app...
by dbr
Mon Apr 16, 2018 4:04 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review - Replacing Vanguard Target Retirement & Extra Cash
Replies: 9
Views: 921

Re: Portfolio Review - Replacing Vanguard Target Retirement & Extra Cash

The simple answer to the excess cash is you can get more return on it by investing it in the stock market. If you don't want to take that risk, then it probably isn't helpful to worry about it. The point of this comment is that risk and return are properties of your portfolio as a whole and that is ...
by dbr
Mon Apr 16, 2018 3:52 pm
Forum: Personal Consumer Issues
Topic: BH travel tips?
Replies: 124
Views: 6867

Re: BH travel tips?

So you save 10 minutes at the airport by not having to wait for a checked bag but then have to go shopping for basic necessities? Similar to the "Don't want to spend time doing laundry" thing I mentioned above - seems like a trade-off (and one that might favor a checked bag to many people). Well, I...
by dbr
Mon Apr 16, 2018 2:22 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds - Am I missing something
Replies: 89
Views: 6806

Re: Bonds - Am I missing something

Bond funds will help put your portfolio asset allocation on the so-called Efficient Frontier. Livesoft, can you kindly post some links on what you mean by the above? I am trying to find links to diverting funds to bonds but navigating the forums to glean information is a bit tricky. https://www.goo...
by dbr
Mon Apr 16, 2018 2:12 pm
Forum: Investing - Help with Personal Investments
Topic: What to do about withdrawal this year if market doesn't go up?
Replies: 32
Views: 2841

Re: What to do about withdrawal this year if market doesn't go up?

Isn't the theory that it doesn't matter what the market does, you just simply take out your 4% per year (or whatever you've decided as your SWR), and that 4% will be a bigger or smaller amount based on what the market did? Typically, when people talk about a safe withdrawal rate strategy, they are ...
by dbr
Mon Apr 16, 2018 1:42 pm
Forum: Personal Consumer Issues
Topic: BH travel tips?
Replies: 124
Views: 6867

Re: BH travel tips?

One way we have reduced travel stress is to rigorously avoid tight connections. We'd rather spend some extra time relaxing between flights, often at a nice lounge, free due to travel perks of some charge cards, but even if just in a regular waiting area at airports without "lounges". And at times w...