Search found 26582 matches

by dbr
Sat May 26, 2018 12:57 pm
Forum: Investing - Theory, News & General
Topic: Is inflation the greatest risk to retirement portfolios?
Replies: 34
Views: 2979

Re: Is inflation the greatest risk to retirement portfolios?

I personally believe that the greatest threat to the retirement of most people is the stock market not doing nearly as well as it has in the past. I'm sort of amazed that only a few people have raised that in this thread. It isn't a big risk since we are all planning on it having the worst possible...
by dbr
Sat May 26, 2018 12:02 pm
Forum: Investing - Theory, News & General
Topic: The "4% withdrawal rate"- would it apply to someone "retiring" in their 70s?
Replies: 42
Views: 2309

Re: The "4% withdrawl rate" - would it apply to someone "retiring" in their 70s?

columbia wrote:
Sat May 26, 2018 11:59 am
Where does one get an 8% annuity?
That would be close for current quotes on a fixed SPIA.
by dbr
Sat May 26, 2018 11:33 am
Forum: Personal Finance (Not Investing)
Topic: Should parents renew life insurance?
Replies: 8
Views: 412

Re: Should parents renew life insurance?

Life insurance is for the purpose of providing for the needs of a survivor after the demise of the insured. The analysis is to do the income and spending plan for the couple and then see what happens to that plan in case of the death of either one. The changes start with what the survivor benefits ...
by dbr
Sat May 26, 2018 11:27 am
Forum: Personal Consumer Issues
Topic: Brick pavers on the edge of my porch are already falling off
Replies: 30
Views: 1529

Re: Brick pavers on the edge of my porch are already falling off

Yes, adhesive failure is pretty well indicated, but I also cannot credit that you can use adhesive to support stone in vertical sheer. Maybe I am wrong.
by dbr
Sat May 26, 2018 11:21 am
Forum: Personal Finance (Not Investing)
Topic: Should parents renew life insurance?
Replies: 8
Views: 412

Re: Should parents renew life insurance?

Life insurance is for the purpose of providing for the needs of a survivor after the demise of the insured. The analysis is to do the income and spending plan for the couple and then see what happens to that plan in case of the death of either one. The changes start with what the survivor benefits a...
by dbr
Sat May 26, 2018 11:13 am
Forum: Investing - Theory, News & General
Topic: Misuse of the word "technology" in finance
Replies: 13
Views: 571

Re: Misuse of the word "technology" in finance

I find it slightly odd that in the world of finance the word "technology" seems to be associated only with information technology. For example, Apple and Alphabet are considered tech stocks, but BMW or Boeing are not. Technology is a very broad term which includes everything from manufacturing to b...
by dbr
Sat May 26, 2018 11:07 am
Forum: Personal Consumer Issues
Topic: Brick pavers on the edge of my porch are already falling off
Replies: 30
Views: 1529

Re: Brick pavers on the edge of my porch are already falling off

I don't know about the horizontal pavers, but is it possible to adhere unsupported vertical pavers by any method? Doesn't masonry depend on physical support of stone under stone rather than adhesion to support the weight of a stone?
by dbr
Sat May 26, 2018 11:00 am
Forum: Investing - Theory, News & General
Topic: Should REITs and BDCs be looked at more like bonds?
Replies: 9
Views: 464

Re: Should REITs and BDCs be looked at more like bonds?

I think the error is in trying to think that things that pay dividends look like income which is [sic] bonds, when the actual decider is risk and return, especially risk.
by dbr
Sat May 26, 2018 10:58 am
Forum: Personal Finance (Not Investing)
Topic: Does IRS penalize for overpayment of taxes?
Replies: 18
Views: 1364

Re: Does IRS penalize for overpayment of taxes?

The penalty for overpaying is that you lose the investment interest you would have had if you hadn't parked the money at the IRS at 0% interest. I am sure the explanation mentioned above is correct; there was actually an underpayment involved even if there was also an overpayment. You can deposit mo...
by dbr
Sat May 26, 2018 9:52 am
Forum: Investing - Theory, News & General
Topic: The "4% withdrawal rate"- would it apply to someone "retiring" in their 70s?
Replies: 42
Views: 2309

Re: The "4% withdrawl rate" - would it apply to someone "retiring" in their 70s?

I pretty surprised how many people think retirees have the same needs year after year. That we all stay healthy to the bitter end. We and our spouse will kick the bucket at the same time, and so 4 percent or more will be just fine. These folks we are discussing have a high risk of economic failure ...
by dbr
Sat May 26, 2018 9:44 am
Forum: Investing - Theory, News & General
Topic: 30 basis points in admin fees for 401-K?
Replies: 7
Views: 274

Re: 30 basis points in admin fees for 401-K?

It's only around $60K in admin fees for the whole plan, but seeing around $25 in shares sold every month for "fees" is somewhat demotivating. I'm surprised the company doesn't cover it. Seems like a ton of transactions and record-keeping for $60K. That cost would cover about 1/3 of the total employ...
by dbr
Sat May 26, 2018 9:39 am
Forum: Investing - Theory, News & General
Topic: Couple of questions about passages from Bogle's book "Enough"
Replies: 17
Views: 1738

Re: Couple of questions about passages from Bogle's book "Enough"

So I went and bought the book just to try to figure out what he is talking about. My conclusion is that the discussion is so general that a reader has no chance to understand what it is that is being bought and sold to which "information asymmetry" can be applied in that sentence. The text reads lik...
by dbr
Sat May 26, 2018 9:24 am
Forum: Investing - Theory, News & General
Topic: The "4% withdrawal rate"- would it apply to someone "retiring" in their 70s?
Replies: 42
Views: 2309

Re: The "4% withdrawl rate" - would it apply to someone "retiring" in their 70s?

Interesting! Can we think it in a simpler way? How about a 25 year TIP ladder? If the guy is 75 years old now, it will cover the expenses until he is 100 years. To me, this is safe enough. So lets see, the $300 - 400K will buy roughly $15,0000 - 20,000 TIP per year in the 25 years ladder. Easily me...
by dbr
Sat May 26, 2018 9:18 am
Forum: Investing - Theory, News & General
Topic: 30 basis points in admin fees for 401-K?
Replies: 7
Views: 274

Re: 30 basis points in admin fees for 401-K?

I don't think it is excessive. Maybe $20B and you are talking about real money. The 401k at Megacorp hits 15bps and assets in excess of $20B. Also Megacorp subsidizes the cost. It would be reasonable for the employer to pay the fee as a benefit. A good part of that cost at Megacorp is really payroll...
by dbr
Sat May 26, 2018 9:12 am
Forum: Investing - Theory, News & General
Topic: Should REITs and BDCs be looked at more like bonds?
Replies: 9
Views: 464

Re: Should REITs and BDCs be looked at more like bonds?

No, not bonds, not even close.

Whether or not common stocks of a REIT are enough different from common stocks in other corporations to classify as a different asset class has been discussed in many threads that you can look up.

BDCs .... ?
by dbr
Sat May 26, 2018 9:09 am
Forum: Investing - Theory, News & General
Topic: Do TSM funds contain REITs, BDCs, CEFs, Prefered stocks?
Replies: 1
Views: 131

Re: Do TSM funds contain REITs, BDCs, CEFs, Prefered stocks?

No. REITs really are common stocks of a Real Estate Investment Company and are included in TSM. Preferred stocks are not. CEF means closed end fund. A CEF is not a stock and would hardly be part of a stock fund. Same for BDC. I don't think a CEF or a BDC would issue common stock that would be listed...
by dbr
Sat May 26, 2018 9:05 am
Forum: Personal Consumer Issues
Topic: Brick pavers on the edge of my porch are already falling off
Replies: 30
Views: 1529

Re: Brick pavers on the edge of my porch are already falling off

Yes, call a stone mason. Around us landscapers that also have walkway, patio, and such work subcontract a mason. Some walk and patio companies only pour concrete; others are bona-fide masons who do brick and stone work. A landscaper may lay pavers in sand but not do brick and mortar work.
by dbr
Sat May 26, 2018 9:01 am
Forum: Investing - Theory, News & General
Topic: The "4% withdrawal rate"- would it apply to someone "retiring" in their 70s?
Replies: 42
Views: 2309

Re: The "4% withdrawl rate" - would it apply to someone "retiring" in their 70s?

Sure, the answer is no. The answer produced by the analysis of safe withdrawal rate depends on assuming a length of time for which the possibility of success or failure is determined. The shorter the time funds are needed the higher the withdrawal rate can be. Most analysis that produces a 4% result...
by dbr
Sat May 26, 2018 8:20 am
Forum: Investing - Theory, News & General
Topic: Couple of questions about passages from Bogle's book "Enough"
Replies: 17
Views: 1738

Re: Couple of questions about passages from Bogle's book "Enough"

I still don't understand why it is sellers that have an information advantage and buyers that do not. Who does Mr. Bogle refer to when he talks about sellers vis-a-vis buyers? Every transaction on a market has a buyer and a seller and financial professionals are both buyers and sellers all the time....
by dbr
Fri May 25, 2018 1:10 pm
Forum: Investing - Theory, News & General
Topic: Total Return, Yield, Average Annual Performance
Replies: 16
Views: 566

Re: Total Return, Yield, Average Annual Performance

OK. But how do I, as a starting investor, know if a certain "sort of assets", e.g. Munis are really worth the risk for me in comparison to Treasuries. Are you saying it is naive to quantify that - and just assume that Munis have more risk and will generate more return that Treasuries, given the sam...
by dbr
Fri May 25, 2018 10:33 am
Forum: Investing - Theory, News & General
Topic: Total Return, Yield, Average Annual Performance
Replies: 16
Views: 566

Re: Total Return, Yield, Average Annual Performance

Niw my question is that SEC yield is used as a main marker for comparing funds, why not Total Return? Wht doesn't the Vanguard site even not list it anywhere? Thanks in advance. SEC yield is a current property of the fund and says something about the current property of what you are buying. Total r...
by dbr
Fri May 25, 2018 9:28 am
Forum: Investing - Help with Personal Investments
Topic: low fee index fund suggestions
Replies: 15
Views: 887

Re: low fee index fund suggestions

I'm actually surprised the bank person (a financial advisor, presumably) suggested IVV. Nothing wrong with that fund. You will get the return of the S&P 500 minus the very small expense ratio (someone said it's 0.04). Don't worry about beating the market substantially, that's incongruent with the d...
by dbr
Fri May 25, 2018 9:05 am
Forum: Investing - Help with Personal Investments
Topic: low fee index fund suggestions
Replies: 15
Views: 887

Re: low fee index fund suggestions

Hello everyone, We (wife and I) would like to put money that is in her Roth for last year against a low fee index fund, that is aggressive and beats the market substantially, but doesn't need a huge minimum investment. The person at the bank that buys our stuff for investments suggested iShares cor...
by dbr
Fri May 25, 2018 8:11 am
Forum: Personal Consumer Issues
Topic: When did this start?? [Restaurant tipping on total bill]
Replies: 58
Views: 3409

Re: When did this start??

I'm in the top 10% of income earners in the wealthiest country on the planet, and usually the person serving me food is working a crap job just to make ends meet and making less in tips in a day than I make in an hour. So I've always adopted the Dave Ramsey philosophy of being "Outrageously generou...
by dbr
Fri May 25, 2018 8:05 am
Forum: Investing - Help with Personal Investments
Topic: Three fund portfolio minus bonds
Replies: 6
Views: 770

Re: Three fund portfolio minus bonds

I consider my real estate holdings an equity substitute when doing my overall allocation. That is probably a more realistic point of view than taking the income stream and imagining that real estate is like a bond. I would think a person with significant real estate would need a good cash reserve t...
by dbr
Fri May 25, 2018 8:03 am
Forum: Investing - Help with Personal Investments
Topic: Expenses now are 50k a year...can I plan that for retirement?
Replies: 12
Views: 1064

Re: Expenses now are 50k a year...can I plan that for retirement?

agree with all that's been shared thus far and a few extra thoughts: -what about college funds for those kids? -I think you can open an HSA even if it's not offered by employer. It would be well worth checking on that -Old people have high medical expenses. I'd want to add at least 20K annually as ...
by dbr
Fri May 25, 2018 7:49 am
Forum: Investing - Theory, News & General
Topic: Is inflation the greatest risk to retirement portfolios?
Replies: 34
Views: 2979

Re: Is inflation the greatest risk to retirement portfolios?

Among my circle of friends and acquaintances are a significant representation of people living less optimum retirements than they expected or hoped for due to mental disability, divorce, death of spouse, and if not counted as mental disability, drug or gambling addiction. There is no one I know of s...
by dbr
Fri May 25, 2018 7:44 am
Forum: Investing - Theory, News & General
Topic: Why Edward Jones?
Replies: 41
Views: 6818

Re: Why Edward Jones?

... start coaching us to create a will and planning for inheritances, help us decide when best to start SS, decide if I should do Roth conversions, help us decide how to plan for the survivor, help with medicare decisions, what about LTC and CCRC decisions, taxes, when to retire... How much of this...
by dbr
Fri May 25, 2018 7:39 am
Forum: Personal Consumer Issues
Topic: When did this start?? [Restaurant tipping on total bill]
Replies: 58
Views: 3409

Re: When did this start??

Thoughts? Do whatever you think the service deserves. Don't worry about what some system prints out for you.
by dbr
Fri May 25, 2018 7:36 am
Forum: Investing - Help with Personal Investments
Topic: Expenses now are 50k a year...can I plan that for retirement?
Replies: 12
Views: 1064

Re: Expenses now are 50k a year...can I plan that for retirement?

Hello Bogleheads! Using the above calculator with an income of 170k (single income earner), do I really only need about 30-40% (about 50-70k) of my current income in retirement if our expenses are only averaging 50k/yr? After kids are gone, and the mortgage paid off, the expenses will be even less?...
by dbr
Fri May 25, 2018 7:23 am
Forum: Investing - Theory, News & General
Topic: Is inflation the greatest risk to retirement portfolios?
Replies: 34
Views: 2979

Re: Is inflation the greatest risk to retirement portfolios?

I agree with those pointing out that adverse life events are the biggest risk. After that longevity is a risk. In general bonds are the worst asset for anything but very low withdrawal rates. I think one can argue that the bonds one does have might be TIPS, but it would be a tough case to suggest no...
by dbr
Fri May 25, 2018 7:16 am
Forum: Investing - Help with Personal Investments
Topic: Three fund portfolio minus bonds
Replies: 6
Views: 770

Re: Three fund portfolio minus bonds

Stocks are risky. You want to assess the consequences of that risk on your financial position to determine how able and willing you are to take the risk. Bonds are for the purpose of diluting that risk. By risk in this context we mean that the returns are highly variable and therefore the results in...
by dbr
Thu May 24, 2018 8:54 am
Forum: Investing - Help with Personal Investments
Topic: Short term bonds funds or CD Laddering for down payment house savings?
Replies: 6
Views: 607

Re: Short term bonds funds or CD Laddering for down payment house savings?

I wouldn't use a bond fund for a known short term liability. You don't know the velocity and direction of interest rates when your withdrawal date comes, so there is a chance your principal will be negatively impacted. I know rate and term risk exists even in fixed principal instruments, but for me...
by dbr
Thu May 24, 2018 8:51 am
Forum: Personal Consumer Issues
Topic: any disadvantages to using Delta Skymiles for fare?
Replies: 34
Views: 2572

Re: any disadvantages to using Delta Skymiles for fare?

The only place you can book any ticket using Delta miles is Delta. You can do it online at Delta or by calling Delta. As to what airline, that seems confused. Delta miles could be used at Delta to book a Delta flight or at Delta to book a flight on various partner airlines in some cases.
by dbr
Wed May 23, 2018 4:18 pm
Forum: Personal Finance (Not Investing)
Topic: Are high dividend stocks advantageous for the 15% tax rate?
Replies: 46
Views: 3663

Re: Are high dividend stocks advantageous for the 15% tax rate?

These points make sense to me for someone in the accumulation stage. I'm wondering, though, if it would be different in retirement when you are living off the portfolio. EXACTLY! If (like us), you need an income stream to pay the bills in retirement, it is FAR more comforting to have a (reasonably)...
by dbr
Wed May 23, 2018 9:34 am
Forum: Investing - Help with Personal Investments
Topic: Short term bonds funds or CD Laddering for down payment house savings?
Replies: 6
Views: 607

Re: Short term bonds funds or CD Laddering for down payment house savings?

I would think a savings account, money market fund, or very short bond fund would all be more convenient than a ladder of CDs. One can shop around for interest rates on offer, but there is not much to earn short term anyway.
by dbr
Wed May 23, 2018 8:58 am
Forum: Personal Consumer Issues
Topic: Root canal/Crown for a tooth that was worked on 6 months ago.
Replies: 11
Views: 1071

Re: Root canal/Crown for a tooth that was worked on 6 months ago.

We can't give medical advice, but my comment would be that root canals can be needed and have no relationship to something a dentist should or should not have done. I doubt there are grounds for asking your dentist to do free or reduced cost work. This kind of dental work is just one of the costs of...
by dbr
Wed May 23, 2018 8:55 am
Forum: Personal Consumer Issues
Topic: Best used SUV, Wagon, Hatch, Pickup under $10k
Replies: 34
Views: 2700

Re: Best used SUV, Wagon, Hatch, Pickup under $10k

I vote CRV, RAV4, or Fit. Might have CVT though. Maybe if you can get a manual Forester or Outback, since those also have CVT? Not sure what you have against a good CVT. A manual transmission is not CVT. Subaru automatic transmissions are CVT now, but I don't know what model year that starts, maybe...
by dbr
Wed May 23, 2018 8:35 am
Forum: Personal Consumer Issues
Topic: Purchasing SIM card WITH phone?
Replies: 10
Views: 765

Re: Purchasing SIM card WITH phone?

I have a couple of unlocked GSM phones acquired in the past for about $50/phone or something. I don't know what models to currently recommend. You can buy such phones online or in phone stores abroad. You can buy SIMs in stores abroad and sometimes on line ahead of time. That gives you a phone where...
by dbr
Wed May 23, 2018 8:31 am
Forum: Investing - Help with Personal Investments
Topic: Best buy and hold vanguard fund forever...
Replies: 28
Views: 2935

Re: Best buy and hold vanguard fund forever...

The two above suggestions are credible if/when they apply. The best fund, of course, is what best suits your objectives, and there may not be one single fund that does that. It is also unlikely that anyone should "set it and forget it" as the world marches on and one's life marches on and what suits...
by dbr
Wed May 23, 2018 8:17 am
Forum: Investing - Help with Personal Investments
Topic: Bond conundrum: looking for recommendations
Replies: 18
Views: 1871

Re: Bond conundrum: looking for recommendations

With that info, I would put 100% bonds in 401(k) and rollover IRA. Then only a little bond funds in taxable as tax-exempt muni for MA. My AA would be about 65% equities which all fit in taxable. I would not have REITs at all (apologies to @staythecourse). Would suggest a slight tweak— additionally ...
by dbr
Tue May 22, 2018 8:09 pm
Forum: Personal Finance (Not Investing)
Topic: Are high dividend stocks advantageous for the 15% tax rate?
Replies: 46
Views: 3663

Re: Are high dividend stocks advantageous for the 15% tax rate?

when someone retires and they have a total return asset like VTI, how you sell? what is the strategy to sell? I feel like one would have to market time. The strategy is to look at what rate of withdrawal can be sustained by the assets and, on average, take that amount from the portfolio. Aside from...
by dbr
Tue May 22, 2018 4:25 pm
Forum: Investing - Theory, News & General
Topic: Typical interest rate earned by target date funds in retirement?
Replies: 28
Views: 1846

Re: Typical interest rate earned by target date funds in retirement?

Thank you Moto. Since 4% is frequently cited, what investment is that based on? I'm trying to determine my FI date and I would like to have a real solid idea of these numbers. Currently, I'm using a 4% draw down and 3% gain (during that period). That gets me through 44 years without going negative....
by dbr
Tue May 22, 2018 2:02 pm
Forum: Personal Finance (Not Investing)
Topic: Are high dividend stocks advantageous for the 15% tax rate?
Replies: 46
Views: 3663

Re: Are high dividend stocks advantageous for the 15% tax rate?

Most of the arguments against a dividend-growth portfolio seem to be making the points that: total return is what matters a total market index most likely provides a better total return for the equivalent level of risk in a taxable account dividends create a drag on returns because a smaller portio...
by dbr
Tue May 22, 2018 1:55 pm
Forum: Investing - Theory, News & General
Topic: Three-fund portfolio returns and variance drain
Replies: 106
Views: 8902

Re: Three-fund portfolio returns and variance drain

The expected return of an investment is an estimate of an arithmetic mean return. This is overloading the term arithmetic mean, and also has it backwards (sample means are estimates of the expected values of the random variable being sampled). The expected return of an investment over the holding p...
by dbr
Tue May 22, 2018 1:32 pm
Forum: Investing - Help with Personal Investments
Topic: Need Your Advice - Thank You
Replies: 11
Views: 794

Re: Need Your Advice - Thank You

What do you think guys? What are you using for your wealth management services? I would appreciate any and all advice/perspectives! Most people here use the forum as their "wealth management service." In some instances there is positive sentiment for Vanguard PAS or one of the robo advisors. A basi...
by dbr
Tue May 22, 2018 1:15 pm
Forum: Investing - Help with Personal Investments
Topic: Difficulty with Parents-In-Law
Replies: 25
Views: 1379

Re: Difficulty with Parents-In-Law

Couple of things from the recent posts: 1. My Dad didn't suggest I reach out to them about it. He is just very open about his and my mother's finances, so I was just them using as a counterpoint. 2. My FIL showed me the investments and what they were without my prompting. But when I dug in and poin...
by dbr
Tue May 22, 2018 1:04 pm
Forum: Investing - Theory, News & General
Topic: Predicting income from investment
Replies: 13
Views: 930

Re: Predicting income from investment

Anyone who has not taken the suggestion to look at FireCalc needs to, not because FireCalc has the answer but to understand the nature of the answer. It is a point that is absolutely essential to understanding investing.
by dbr
Tue May 22, 2018 1:01 pm
Forum: Investing - Theory, News & General
Topic: Predicting income from investment
Replies: 13
Views: 930

Re: Predicting income from investment

In any case, whatever the value of that investment at the end of five years, you could withdraw and spend that money, so that is your income, one time.
by dbr
Tue May 22, 2018 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: Are high dividend stocks advantageous for the 15% tax rate?
Replies: 46
Views: 3663

Re: Are high dividend stocks advantageous for the 15% tax rate?

As others have pointed out - dividends are not magic. 71% of stock market returns come from dividends and help fuel returns. The rest comes from share price appreciation. Dividends are a part of your invested capital that is withdrawn every month/quarter/semi-annual/annual depending on when the com...