Search found 35254 matches

by dbr
Sun Apr 11, 2021 8:43 am
Forum: Investing - Theory, News & General
Topic: Real Estate Risk: What Do You Call This Kind?
Replies: 2
Views: 365

Re: Real Estate Risk: What Do You Call This Kind?

I am not sure if there is as technical term. The nature of the risk is that of being out of the market and not owning the asset when the price went up. Naturally risk goes both ways. Prices could have gone down while you were out of the market. As above it is also inflation in a sort of general sens...
by dbr
Sun Apr 11, 2021 8:35 am
Forum: Investing - Theory, News & General
Topic: An alternative to bonds
Replies: 8
Views: 980

Re: An alternative to bonds

Has anyone heard of HNDL? It's an EDF of EDFs and pays a distribution (not dividend) every month. Right now its paying 7% while the investment has gone unchanged. Here's an article that explains it. https://www.investopedia.com/investing/etf-designed-retirees/?utm_campaign=quote-yahoo&utm_sourc...
by dbr
Sun Apr 11, 2021 8:24 am
Forum: Personal Investments
Topic: US Equity Allocation Strategy
Replies: 3
Views: 253

Re: US Equity Allocation Strategy

Picking funds isn't a strategy. The strategy that is associated with this is factor investing, specifically tilting to size and value factors as suggested by the Fama-French model of investment returns. You should read on that model. If you are seriously interested in trying to gain something this w...
by dbr
Sat Apr 10, 2021 4:20 pm
Forum: Personal Investments
Topic: Investment Allocation: Unpredictable Income
Replies: 13
Views: 620

Re: Investment Allocation: Unpredictable Income

Thanks. First off, the goal is to never touch the principal, only the interest. I don't want it to be turned on/off, I want it to be always on as a source of predictable income that is always there as a baseline for living. And when years are better, just have extra, as opposed to what you are sayi...
by dbr
Sat Apr 10, 2021 4:07 pm
Forum: Personal Investments
Topic: Investment Allocation: Unpredictable Income
Replies: 13
Views: 620

Re: Investment Allocation: Unpredictable Income

In any case dividend income is not constant both quarter to quarter and certainly not over extended times. Also yield is not the income. Yield for a period is the income for that period divided by the current price. A standardized report of yield is the SEC yield which is calculated by certain rules...
by dbr
Sat Apr 10, 2021 3:15 pm
Forum: Personal Investments
Topic: AA for someone 2 years from retirement
Replies: 47
Views: 4481

Re: AA for someone 2 years from retirement

well that is why I proposed a 3% withdrawal rate. I'm acknowledging that if I stay at 3% I am probably very likely to be fine. That will certainly not make me rich! :) That's ok, I am learning what my options are and how much I can expect to remove each year. Thanks again! It will make you rich. Th...
by dbr
Sat Apr 10, 2021 3:06 pm
Forum: Personal Investments
Topic: Investment Allocation: Unpredictable Income
Replies: 13
Views: 620

Re: Investment Allocation: Unpredictable Income

My objective is to create a consistent passive source of income, that is constant regardless of outside forces. In simple, my starting income will be from Vanguard, and anything outside will be the extra, vs the opposite of what you mentioned. Keep in mind that if your source of income is at your w...
by dbr
Sat Apr 10, 2021 3:00 pm
Forum: Personal Investments
Topic: Investment Allocation: Unpredictable Income
Replies: 13
Views: 620

Re: Investment Allocation: Unpredictable Income

You don't need to tether yourself to investment yield to be able to save during fat times and consume during lean times. Buy an appropriate asset allocation of given risk and return and add to it when your have excess income and draw from it when you have need. I'm not sure what the analysis is for ...
by dbr
Sat Apr 10, 2021 2:19 pm
Forum: Personal Finance (Not Investing)
Topic: Withdrawal Frequency in Retirement
Replies: 22
Views: 1634

Re: Withdrawal Frequency in Retirement

Do people who are retired keep that same 10-15 years spending in fixed income the whole way. For example would you do that if you started that way at age 60 but now you are 80, of if you are 90? How does that work? I'm curious because I don't think that way and instead just stick to an allocation ta...
by dbr
Sat Apr 10, 2021 2:14 pm
Forum: Personal Investments
Topic: How to understand AA with Pension and SS ahead
Replies: 6
Views: 642

Re: How to understand AA with Pension and SS ahead

The general thinking is that income streams are income streams and not investments and are not contemplated as if they were bonds. However the presence of income streams affects your need, ability, and willingness to take risk in your stock and bond portfolio, that is your asset allocation. What the...
by dbr
Sat Apr 10, 2021 2:07 pm
Forum: Personal Investments
Topic: [Vanguard Admiral Shares..or not? See my portfolio]
Replies: 7
Views: 960

Re: [Vanguard Admiral Shares..or not? See my portfolio]

Interesting. What If I exchange all of my target date fund for equal split of shares of VTSAX, VTIAX? Or is that more hustle for little extra profit? It doesn't make enough difference to bother one way or the other. But remember TR funds are not just stocks. Your fund is 10% bonds and will eventual...
by dbr
Sat Apr 10, 2021 1:58 pm
Forum: Personal Investments
Topic: AA for someone 2 years from retirement
Replies: 47
Views: 4481

Re: AA for someone 2 years from retirement

Thank you, yes, I am looking at this "short term" so to speak Retirement is not a short term proposition. By and large your asset allocation would not change from years before retirement through years after retirement, possibly excepting a set aside for some special consideration. Current...
by dbr
Sat Apr 10, 2021 11:55 am
Forum: Personal Investments
Topic: Simplifying portfolio
Replies: 8
Views: 995

Re: Simplifying portfolio

Besides the small tax implications, is there anything wrong with the above recommendation? Would anyone else want to chime in? It would be what I would do. If you want to find a mistake in this somewhere it would be in taking over someone else's investments, which has the potential of eventually ho...
by dbr
Sat Apr 10, 2021 11:45 am
Forum: Personal Investments
Topic: Protect savings from imminent inflation?
Replies: 24
Views: 2043

Re: Protect savings from imminent inflation?

Dandy wrote: Sat Apr 10, 2021 11:30 am A decent equity allocation, a decent allocation to inflation protected bonds, and delaying collecting SS as long as you can.
As practical advice that is pretty good.
by dbr
Sat Apr 10, 2021 11:28 am
Forum: Personal Investments
Topic: Looking for a well-diversified portfolio of 100% stocks
Replies: 14
Views: 1058

Re: Looking for a well-diversified portfolio of 100% stocks

5) I think virtually everyone would agree that Total Stock, Total International, Total World, S&P 500 index funds, and many others are "diversified." And that a fund or ETF that invests only in technology stocks is not. Where long arguments come in involve the question of whether Tota...
by dbr
Sat Apr 10, 2021 11:21 am
Forum: Personal Investments
Topic: "Escrow" held by POA for dad's taxes?
Replies: 15
Views: 783

Re: "Escrow" held by POA for dad's taxes?

My concerns: if dad dies before filing of 2020 (or other years going forward) taxes, I will be unable to use his accounts to pay the IRS. Getting the 50% share for the IRS payments from my sister will be difficult. A tax payment made to his IRS account now is effectively a savings account against a...
by dbr
Sat Apr 10, 2021 11:10 am
Forum: Personal Investments
Topic: "Escrow" held by POA for dad's taxes?
Replies: 15
Views: 783

Re: "Escrow" held by POA for dad's taxes?

tadamsmar wrote: Sat Apr 10, 2021 11:07 am Did you take that RMD without doing federal tax withholding?

Where is the worrisome tax bill coming from?
Of course. Withholding the expected tax would have been obvious :oops:
by dbr
Sat Apr 10, 2021 11:09 am
Forum: Personal Investments
Topic: Financial advisor help
Replies: 22
Views: 2047

Re: Financial advisor help

Just note that tax strategies involving setting up LLC's, businesses of different kind and advice on real estate investment are a whole different thing from the rest of your list. Just expecting to pay someone to take over your lifetime financial affairs is unrealistic. Finding advice on ordinary st...
by dbr
Sat Apr 10, 2021 10:58 am
Forum: Personal Investments
Topic: "Escrow" held by POA for dad's taxes?
Replies: 15
Views: 783

Re: "Escrow" held by POA for dad's taxes?

My concerns: if dad dies before filing of 2020 (or other years going forward) taxes, I will be unable to use his accounts to pay the IRS. Getting the 50% share for the IRS payments from my sister will be difficult. A tax payment made to his IRS account now is effectively a savings account against a...
by dbr
Sat Apr 10, 2021 10:48 am
Forum: Personal Investments
Topic: Protect savings from imminent inflation?
Replies: 24
Views: 2043

Re: Protect savings from imminent inflation?

I used to keep a 1 month supply of Toilet paper. Now I keep 6 months. I'm not sure what else to do. Perhaps spend your savings now? Actually buying real assets now might be helpful. A problem is that most real assets involve maintenance costs and risks. It could be owning houses or putting everythi...
by dbr
Sat Apr 10, 2021 10:39 am
Forum: Personal Investments
Topic: Looking for a well-diversified portfolio of 100% stocks
Replies: 14
Views: 1058

Re: Looking for a well-diversified portfolio of 100% stocks

Yep, the obvious is as suggested in the replies above. I agree that adding an allocation to international stocks makes common sense. You may be confused by language which suggests that portfolios concentrated in various factors such as small and value stocks are "more diversified." This is...
by dbr
Sat Apr 10, 2021 10:28 am
Forum: Personal Investments
Topic: Alternative Investments That Offer Immediate + Scalable Cash Flow
Replies: 13
Views: 839

Re: Alternative Investments That Offer Immediate + Scalable Cash Flow

What about just buying more VTSAX in your brokerage account? It's tax efficient, low cost, completely passive and produces scalable cash flow. It includes real estate if that is really important to you. You may accumulate enough to buy into the real estate market later if you still want to do that....
by dbr
Sat Apr 10, 2021 10:28 am
Forum: Personal Investments
Topic: Alternative Investments That Offer Immediate + Scalable Cash Flow
Replies: 13
Views: 839

Re: Alternative Investments That Offer Immediate + Scalable Cash Flow

What problem exactly are you trying to solve that requires alternative investments with that cash flow rather than saving money in stocks and bonds and eventually having income from Social Security, pensions, and annuities? I'm not sure I understand your comment about wanting "immediate and sca...
by dbr
Sat Apr 10, 2021 10:21 am
Forum: Personal Investments
Topic: Protect savings from imminent inflation?
Replies: 24
Views: 2043

Re: Protect savings from imminent inflation?

There are simple answers to this question and complicated and ambiguous answers. If you think CPI is a measure of the inflation you care about and your only objective is to eliminate inflation risk, then you can invest all your assets in TIPS or I bonds. A possible alternative would be to buy a CPI ...
by dbr
Sat Apr 10, 2021 10:11 am
Forum: Personal Finance (Not Investing)
Topic: Withdrawal Frequency in Retirement
Replies: 22
Views: 1634

Re: Withdrawal Frequency in Retirement

It wasn't clear to me whether OP understood the general order of withdrawal from different types of accounts. To minimize tax drag, if Roth conversions are being made, the Roth conversions should take up as much of the tax bracket as possible, and living expenses and taxes on the conversion should ...
by dbr
Sat Apr 10, 2021 9:06 am
Forum: Personal Investments
Topic: VWAHX
Replies: 4
Views: 320

Re: VWAHX

Whether or not an investment is worth the risk depends on your objectives in holding the investment. That also cannot be decided except in the context of everything else you are invested in. If you want a formal financial measure of "worth it," which may or may not be relevant, you can com...
by dbr
Sat Apr 10, 2021 8:50 am
Forum: Personal Investments
Topic: Remind me how to stick to Strategic asset allocation
Replies: 11
Views: 689

Re: Remind me how to stick to Strategic asset allocation

I’m considering +- 5% bands but worry about behavioural bias implication, bogle didn’t seem to say anything about SAA bands What behavioral bias implications? Bands are a highly effective approach to maintaining an asset allocation. This is the same as having and following an IPS. Also Mr. Bogle is...
by dbr
Sat Apr 10, 2021 8:42 am
Forum: Personal Finance (Not Investing)
Topic: Withdrawal Frequency in Retirement
Replies: 22
Views: 1634

Re: Withdrawal Frequency in Retirement

Just about any pattern or lack of pattern in withdrawing can be completely possible and practical. There isn't much that would not just be common sense. The actual practice depends a lot on how and where your assets are arrayed. The actual practice also recognizes that spending is not likely to be a...
by dbr
Sat Apr 10, 2021 8:20 am
Forum: Personal Finance (Not Investing)
Topic: Do budgets work?
Replies: 84
Views: 3024

Re: Do budgets work?

Budgets can work, but I suspect the likelihood of being successful is greatest when one is young and can learn and least when hardened by years of wrong practice. Within family and close friends I have seen both. I have also seen people save themselves from bad habits, such as cocaine and gambling. ...
by dbr
Sat Apr 10, 2021 7:42 am
Forum: Personal Investments
Topic: Remind me how to stick to Strategic asset allocation
Replies: 11
Views: 689

Re: Remind me how to stick to Strategic asset allocation

KlangFool wrote: Fri Apr 09, 2021 10:26 pm OP,

Don't do SAA. Instead of 3 funds portfolio, use an all-in-one fund like Target Date Retirement Fund and/or Vanguard Life Strategy fund.

KlangFool
Yes, I agree.

Also, instead of posting Rule 5 on your signature line, print it out and paste it to the mirror in your bathroom.
by dbr
Sat Apr 10, 2021 7:35 am
Forum: Personal Finance (Not Investing)
Topic: capital gains taxes need to be paid in quarter they occur?
Replies: 6
Views: 719

Re: capital gains taxes need to be paid in quarter they occur?

Q2 to avoid potential underpayment penalty. A workaround is to have extra tax withheld (like from a paycheck or IRA distribution) instead of paying an estimated tax. Tax withholding is always treated as timely regardless of which quarter it was withheld. Right. I use my RMD at year end to even up t...
by dbr
Sat Apr 10, 2021 7:27 am
Forum: Personal Investments
Topic: HELP: 5-10yr Portfolio with $1mil target
Replies: 7
Views: 1085

Re: HELP: 5-10yr Portfolio with $1mil target

You can use a planner such as FireCalc with pre-retirment settings. That means setting an initial portfolio value (140k), no spending, a time period of 10 years, going to the the "not retired" page and setting retirement date 10 or more years out, setting rate of contriubiton (50k, for exa...
by dbr
Fri Apr 09, 2021 2:44 pm
Forum: Personal Investments
Topic: No Bonds
Replies: 40
Views: 2446

Re: No Bonds

dbr - Planning a 4% withdrawal rate from cash and a combination of stock in strong market return years. As well as can be predicted for long terms an optimum asset allocation would be 60/40 with intermediate or intermediate to long term bonds. A normal procedure is to withdraw money and also keep t...
by dbr
Fri Apr 09, 2021 2:30 pm
Forum: Personal Investments
Topic: No Bonds
Replies: 40
Views: 2446

Re: No Bonds

Not sure why you and watchnerd are pointing out that correlation can be zero, or even positive, and still provide diversification benefits. I’m in agreement with that, and didn’t say anything contrary to that statement. What I pointed out is that <1.0 correlation is only 1 requirement of a diversif...
by dbr
Fri Apr 09, 2021 2:26 pm
Forum: Personal Investments
Topic: No Bonds
Replies: 40
Views: 2446

Re: No Bonds

What I pointed out is that <1.0 correlation is only 1 requirement of a diversifying asset. The other requirement is volatility. Gold has volatility, so it provides diversification. Cash does not. I was going to add the same comment. You can, as it were, dilute risk by shifting assets to a low volat...
by dbr
Fri Apr 09, 2021 2:15 pm
Forum: Personal Investments
Topic: No Bonds
Replies: 40
Views: 2446

Re: No Bonds

What is your expected withdrawal rate and how, generally, will you arrange for income?

Asset allocation and selection concerns such as this have little to do with the success of your retirement plan.
by dbr
Fri Apr 09, 2021 1:45 pm
Forum: Personal Investments
Topic: No Bonds
Replies: 40
Views: 2446

Re: No Bonds

Hello Bogleheads, My entire portfolio is in VSMGX (Vanguard LifeStrategy Moderate Growth). If I switch to 70% VT (Vanguard Total World Stock) and 30% Cash the expected return and risk are similar. Since I am planning to retire early next year, I am also protected against SOR with a hefty cash amoun...
by dbr
Fri Apr 09, 2021 12:34 pm
Forum: Personal Consumer Issues
Topic: Airline Miles - how to use?
Replies: 27
Views: 1712

Re: Arline Miles - how to use?

Before the Covid pandemic began we had made reservations for an excellent redemption on a European trip. Those flights were cancelled, access to Europe was blocked, and our reservation was cancelled and miles and fees were redeposited. These were Avios points FWIW. Since that time I have not even bo...
by dbr
Fri Apr 09, 2021 12:19 pm
Forum: Personal Finance (Not Investing)
Topic: Questions for 10+ year retirees
Replies: 21
Views: 2894

Re: Questions for 10+ year retirees

True, but at 65 you can get Medicare, wouldn't that lower your expenses (I'm not super familiar with the cost of Medicare)? But then if you ever need LTC that's probably another big increase later in life. Relative to self funded healthcare in retirement the advent of Medicare combined with Medigap...
by dbr
Fri Apr 09, 2021 12:11 pm
Forum: Personal Investments
Topic: constant maturity bond indices versus cash bonds
Replies: 2
Views: 233

Re: constant maturity bond indices versus cash bonds

I think by basis risk you are concerned that the market value of the bond fund will be "down" on some specific date when you imagine that you are going to liquidate the fund, meaning sell all of it and take the cash. The answer to that question, essentially the same as given in the post ab...
by dbr
Fri Apr 09, 2021 11:55 am
Forum: Personal Investments
Topic: Noob - 550k to invest
Replies: 7
Views: 1203

Re: Noob - 550k to invest

I will edit my op in the correct portfolio format soon. The main issue I'm working on first is getting confirmation that the account had a step up in cost basis to date of death. Ed Jones said yes, but they gave me the run around before confirming that it had, I'm hesitant to trust it's been done p...
by dbr
Fri Apr 09, 2021 9:13 am
Forum: Personal Investments
Topic: Just spoke w FA at VG [Financial Advisor at Vanguard]
Replies: 14
Views: 1283

Re: Just spoke w FA at VG [Financial Advisor at Vanguard]

The 24% was just for the million. I just finished looking at all the accounts. Here is the breakdown. 401k. Ira. Fidelity. Total DS. 58%. 42%. 45%. 49% FS. 11%. 0%. 21%. 17% Bonds. 26%. 53%. 31%. 29% Short. 2%. 5%. 3%. 3% Oth. 2%. 0%. 1%. 2% If I added correctly approximately 11% is in Internationa...
by dbr
Fri Apr 09, 2021 8:59 am
Forum: Personal Investments
Topic: [Vanguard Admiral Shares..or not? See my portfolio]
Replies: 7
Views: 960

Re: [Vanguard Admiral Shares..or not? See my portfolio]

You don't just put your investment "into some Admirals." The hoped for return on average depends on the asset allocation and then offset by the costs. The cost difference between Admiral Funds and Target Retirement Funds at Vanguard is so small as to nearly not matter. What asset allocatio...
by dbr
Fri Apr 09, 2021 8:55 am
Forum: Personal Investments
Topic: Noob - 550k to invest
Replies: 7
Views: 1203

Re: Noob - 550k to invest

I will edit my op in the correct portfolio format soon. The main issue I'm working on first is getting confirmation that the account had a step up in cost basis to date of death. Ed Jones said yes, but they gave me the run around before confirming that it had, I'm hesitant to trust it's been done p...
by dbr
Thu Apr 08, 2021 6:44 pm
Forum: Personal Finance (Not Investing)
Topic: Questions for 10+ year retirees
Replies: 21
Views: 2894

Re: Questions for 10+ year retirees

[*]It is generally stated that expenses go down in retirement over time, has this turned out to be true for you and if so, by roughly what percentage over what time period? In fifteen years total outgo has been about constant. I would say a little increase in the routine costs of living and a littl...
by dbr
Thu Apr 08, 2021 6:27 pm
Forum: Personal Investments
Topic: Withdrawal Strategy from a Taxable Account
Replies: 5
Views: 898

Re: Withdrawal Strategy from a Taxable Account

2. I recently just started to understand the differences between the different cost basis methods. Your suggestion is that specific ID is the way to go, because it tends to give you better tax control by determining which shares to sell? But is this a complicated concept? Also, my basic knowledge o...
by dbr
Thu Apr 08, 2021 6:02 pm
Forum: Personal Consumer Issues
Topic: American Air ticket refunds?
Replies: 11
Views: 935

Re: American Air ticket refunds?

Wanted to post an update. I cancelled the flights before I left to drive to the children’s hospital. Then sent the refund request with a physician’s note when we got back home 10 days later. American Air said the tickets were non refundable, but did give us credits. Happy with the results and our c...
by dbr
Thu Apr 08, 2021 5:56 pm
Forum: Personal Investments
Topic: Best passive besides dividends?
Replies: 8
Views: 1141

Re: Best passive besides dividends?

I'm 19 and am familiar with investing. I mostly trade and sell but I was wondering if there is a better more profitable way to make money than dividends? Profit on a stock investment comes from increase in the price of a share as much or more than from dividends. The most effective way to profit fr...
by dbr
Thu Apr 08, 2021 4:45 pm
Forum: Personal Investments
Topic: Mutual fund recommendations for growth
Replies: 1
Views: 241

Re: Mutual fund recommendations for growth

Growth funds do not have potential for higher return. The word "growth" does not mean assets of that type have higher expected returns on average. Of course the returns of any portfolio are variable, so in an arbitrary period of time one selection may have higher return than another. Diffe...
by dbr
Thu Apr 08, 2021 4:37 pm
Forum: Personal Investments
Topic: Withdrawal Strategy from a Taxable Account
Replies: 5
Views: 898

Re: Withdrawal Strategy from a Taxable Account

You have the general idea. When you withdraw from an account that has a target allocation, it is reasonable to sell assets that best drive the allocation toward target. There are a couple of complications: 1. Asset allocation should be for your whole portfolio unless you have a specific portfolio se...