Search found 24140 matches

by dbr
Sat Dec 16, 2017 1:30 pm
Forum: Investing - Theory, News & General
Topic: Is 120 months of expenses in Fixed Income plus 100/0 a viable long term allocation?
Replies: 42
Views: 1408

Re: Is 120 months of expenses in Fixed Income plus 100/0 a viable long term allocation?

Putting 10 years expenses into fixed income and then spending solely from that bucket over the first 10 years of retirement with the remaining assets in equities is just using mental accounting to describe a rising equity glidepath. Going with a conservative AA upon retirement and then gradually ra...
by dbr
Sat Dec 16, 2017 11:54 am
Forum: Investing - Help with Personal Investments
Topic: Question About TIPs and TIP Funds
Replies: 42
Views: 1261

Re: Question About TIPs and TIP Funds

#Cruncher wrote:
Sat Dec 16, 2017 11:09 am
Thanks for the additions.
by dbr
Sat Dec 16, 2017 11:03 am
Forum: Personal Consumer Issues
Topic: Best place to get a Suit
Replies: 21
Views: 1448

Re: Best place to get a Suit

I am 31 and wanting one for job fairs and interviews. I am starting the certificate in personal financial planning program at Kansas State next semester and have seen people in jackets and ties for the job fairs/interviews they conduct Meaning they are not at a level of status that would be indicat...
by dbr
Sat Dec 16, 2017 10:58 am
Forum: Investing - Theory, News & General
Topic: Is 120 months of expenses in Fixed Income plus 100/0 a viable long term allocation?
Replies: 42
Views: 1408

Re: Is 120 months of expenses in Fixed Income plus 100/0 a viable long term allocation?

Kudos for having it so well thought out, "TimeLord". I've been following your "mental math" (buckets) for awhile and while it makes sense and seems very viable, I wonder if it's an attempt to optimize "6" or a "half dozen". . otherwise known as "splitting hairs". To simply have a comprehensive over...
by dbr
Sat Dec 16, 2017 10:55 am
Forum: Investing - Theory, News & General
Topic: Is 120 months of expenses in Fixed Income plus 100/0 a viable long term allocation?
Replies: 42
Views: 1408

Re: Is 120 months of expenses in Fixed Income plus 100/0 a viable long term allocation?

To be more clear, this is a scheme that starts with a certain unspecified allocation between fixed income and equities and a certain withdrawal rate where there is a plan to change the allocation over a period of time at the end of which the withdrawal rate will be reduced and the asset allocation w...
by dbr
Sat Dec 16, 2017 10:43 am
Forum: Investing - Theory, News & General
Topic: Is 120 months of expenses in Fixed Income plus 100/0 a viable long term allocation?
Replies: 42
Views: 1408

Re: Is 120 months of expenses in Fixed Income plus 100/0 a viable long term allocation?

Where would you invest 120 months of expenses in FI? How many months of expenses would the 100/0 or 80/20 AA constitute? Indeed the viability of the result does depend on the details. I think it is generally true that how much trouble one is or isn't in when financing a bridge to the onset of incom...
by dbr
Sat Dec 16, 2017 10:39 am
Forum: Investing - Theory, News & General
Topic: Is 120 months of expenses in Fixed Income plus 100/0 a viable long term allocation?
Replies: 42
Views: 1408

Re: Is 120 months of expenses in Fixed Income plus 100/0 a viable long term allocation?

Sure it is probably viable. Whether or not there is a significant benefit to use this plan compared to some other plan, I don't know. To find out you would have to run some models that compare results of interest while putting in different scenarios including the one you propose. I suspect you are n...
by dbr
Sat Dec 16, 2017 10:22 am
Forum: Personal Consumer Issues
Topic: Terrible negotiator - need help with words to use [Buying a car]
Replies: 103
Views: 9133

Re: Terrible negotiator - need help with words to use [Buying a car]

Strangely enough I have never had bad experiences buying cars and I am convinced I have not been taken advantage of. I seem to have never had to play games with dealers nor have I been gamed by dealers. I don't know what explains this.
by dbr
Sat Dec 16, 2017 9:48 am
Forum: Personal Consumer Issues
Topic: Best place to get a Suit
Replies: 21
Views: 1448

Re: Best place to get a Suit

There is a big difference between a suit and jacket and slacks.

At Megacorp there was an overnight transition where no executive would be seen dead wearing a tie with his suit.
by dbr
Sat Dec 16, 2017 9:46 am
Forum: Investing - Help with Personal Investments
Topic: Capital Gains: take in 2017 or 2018
Replies: 5
Views: 657

Re: Capital Gains: take in 2017 or 2018

Someone here may be tuned into that, otherwise do you know a tax accountant you can ask? I'm trying to be informed before I talk with an accountant. Plus, I was hoping the collective wisdom herein would help me avoid the tax accountant's fee. It is not a question of wisdom but of information. An ex...
by dbr
Sat Dec 16, 2017 9:30 am
Forum: Investing - Theory, News & General
Topic: Stocks always in taxable for tax efficient investing?
Replies: 89
Views: 4332

Re: Stocks always in taxable for tax efficient investing?

Back to misreading the advice, I think the mistake is as simple as reading "Put bonds in tax protected accounts . . ." and jumping to the unstated and illogical conclusion that stocks must go in taxable. Others have pointed out the mistake of reading past the first piece of advice, which is to maxim...
by dbr
Sat Dec 16, 2017 8:43 am
Forum: Investing - Help with Personal Investments
Topic: Capital Gains: take in 2017 or 2018
Replies: 5
Views: 657

Re: Capital Gains: take in 2017 or 2018

A family member is a tax accountant and I know they are going crazy to keep up with what the changes might be. Someone here may be tuned into that, otherwise do you know a tax accountant you can ask?
by dbr
Sat Dec 16, 2017 8:34 am
Forum: Investing - Theory, News & General
Topic: Asset allocation
Replies: 6
Views: 595

Re: Asset allocation

If you want to read about factor investing this book is available: https://www.amazon.com/Your-Complete-Gu ... +investing
by dbr
Sat Dec 16, 2017 1:11 am
Forum: Personal Consumer Issues
Topic: Best place to get a Suit
Replies: 21
Views: 1448

Re: Best place to get a Suit

There is probably more on point advice here https://www.askandyaboutclothes.com/for ... -forum.31/ than on this forum.
by dbr
Sat Dec 16, 2017 1:02 am
Forum: Personal Consumer Issues
Topic: Is a Year on the JOb too Soon to Ask For a Promotion?
Replies: 20
Views: 1400

Re: Is a Year on the JOb too Soon to Ask For a Promotion?

In my decades of working at various mega-corps, you typically can't go and ask for a promotion or a raise. It just doesn't work that way. There are HR guidelines and other employees to contend with so they have to evaluate you vs everybody else in an equitable manner. About the only time I see some...
by dbr
Fri Dec 15, 2017 6:54 pm
Forum: Personal Consumer Issues
Topic: Snow Tires? Worth it?
Replies: 147
Views: 6054

Re: Snow Tires? Worth it?

Do people tip their garage mechanic for anything else done there? If it was one of my kids doing the work, the answer is no.
by dbr
Fri Dec 15, 2017 6:53 pm
Forum: Personal Finance (Not Investing)
Topic: Becoming a Fee-Only Financial Advisor Help
Replies: 17
Views: 1678

Re: Becoming a Fee-Only Financial Advisor Help

My caveat is that I am not intimately familiar with the business of being a financial advisor, but I can't help but be persuaded by the likely fact that if investors can't afford to pay what financial advisors need to charge (which I believe they can't) then financial advisors need to charge more th...
by dbr
Fri Dec 15, 2017 6:46 pm
Forum: Personal Consumer Issues
Topic: Is a Year on the JOb too Soon to Ask For a Promotion?
Replies: 20
Views: 1400

Re: Is a Year on the JOb too Soon to Ask For a Promotion?

I am not sure what you mean by a promotion in your company. If there are defined job grades and you are at a level of responsibility and performance that fits a higher grade you should ask your manager if you are a fit for a promotion. It would not be likely that in a large company a person would be...
by dbr
Fri Dec 15, 2017 6:21 pm
Forum: Investing - Theory, News & General
Topic: Factor-Based Investing: The Long-Term Evidence - Dimson & Marsh
Replies: 85
Views: 2886

Re: Factor-Based Investing: The Long-Term Evidence - Dimson & Marsh

There are papers that do principal components analysis for securities returns and related matters, some who have constructed orthogonal factors to explain returns. It's just that everybody generally prefers factors that are more cleanly defined (e.g. small stocks minus large stocks) rather than sta...
by dbr
Fri Dec 15, 2017 6:05 pm
Forum: Investing - Help with Personal Investments
Topic: Question About TIPs and TIP Funds
Replies: 42
Views: 1261

Re: Question About TIPs and TIP Funds

If real rates rose, then the prices of existing TIPS with lower real interest rate would go down. The price of newly issued TIPS would reflect the current real rates and would not have the lower prices that existing TIPS with lower real interest rates would have. Right -- so doesn't that argue agai...
by dbr
Fri Dec 15, 2017 6:02 pm
Forum: Investing - Theory, News & General
Topic: Factor-Based Investing: The Long-Term Evidence - Dimson & Marsh
Replies: 85
Views: 2886

Re: Factor-Based Investing: The Long-Term Evidence - Dimson & Marsh

One of the things that I don't quite understand... I had originally thought that factors were extracted by a mathematical technique called factor analysis. I've never been deeply enough into it to know offhand just how that works. It's similar, but not identical to principal components analysis, wh...
by dbr
Fri Dec 15, 2017 5:37 pm
Forum: Personal Consumer Issues
Topic: Financial Assistance to Adult Child (health insurance)
Replies: 47
Views: 1899

Re: Financial Assistance to Adult Child (health insurance)

Yes, these things come with the territory. Paying to make sure a child is not without health insurance is part of the price of being a parent if you can't find a way to convince her to become more financially responsible and if you want to protect yourself against large uninsured medical expenses. A...
by dbr
Fri Dec 15, 2017 5:30 pm
Forum: Investing - Help with Personal Investments
Topic: Question About TIPs and TIP Funds
Replies: 42
Views: 1261

Re: Question About TIPs and TIP Funds

If real rates rose, then the prices of existing TIPS with lower real interest rate would go down. The price of newly issued TIPS would reflect the current real rates and would not have the lower prices that existing TIPS with lower real interest rates would have. Right -- so doesn't that argue agai...
by dbr
Fri Dec 15, 2017 5:20 pm
Forum: Investing - Help with Personal Investments
Topic: Question About TIPs and TIP Funds
Replies: 42
Views: 1261

Re: Question About TIPs and TIP Funds

Here are some facts about TIPS. What one calls those facts is up to them. 0. TIPS interest rates are real interest rates. Some people make a big mistake comparing this with nominal interest rates of nominal bonds. The difference is the rate of inflation. 1. All TIPS, whether in a fund or held indivi...
by dbr
Fri Dec 15, 2017 4:47 pm
Forum: Investing - Theory, News & General
Topic: Factor-Based Investing: The Long-Term Evidence - Dimson & Marsh
Replies: 85
Views: 2886

Re: Factor-Based Investing: The Long-Term Evidence - Dimson & Marsh

lack_ey Thank you for your response to my cryptic comment. This was an attempt at early morning humor--perhaps I needed more sleep. But when all is said and done are not factors just correlations about whch a very elaborate lanuage has developed? So no one says such and such a factor is correlated ...
by dbr
Fri Dec 15, 2017 4:42 pm
Forum: Personal Consumer Issues
Topic: Snow Tires? Worth it?
Replies: 147
Views: 6054

Re: Snow Tires? Worth it?

I don't think that those who use all season tires to make it through the entire year are being ignorant in snowy regions of the US or Canada, it's just they have chosen to "get by" with what they have because you can "get by" with allowing longer duration for accelerating from a stop, and more leng...
by dbr
Fri Dec 15, 2017 11:57 am
Forum: Personal Consumer Issues
Topic: Snow Tires? Worth it?
Replies: 147
Views: 6054

Re: Snow Tires? Worth it?

In spite of any data and analysis on the subject it appears that 75% of cars in snowy regions of the US are not equipped with winter tires in the winter and 50% of cars in Canada. Whether that means gross ignorance or a general perception that everything is really ok can be debated by anyone that wa...
by dbr
Fri Dec 15, 2017 11:42 am
Forum: Investing - Theory, News & General
Topic: Factor-Based Investing: The Long-Term Evidence - Dimson & Marsh
Replies: 85
Views: 2886

Re: Factor-Based Investing: The Long-Term Evidence - Dimson & Marsh

But I don't have a non-market allocation. Yes or no, in your opinion, used the way you use the terminology, think it's generally used, and think it should be used... ...do you feel that I, holding only VTSMX (and Total International, VGTSX) am "knowingly or unknowingly exposed to factors such as si...
by dbr
Fri Dec 15, 2017 11:38 am
Forum: Investing - Help with Personal Investments
Topic: Suggestions on where to put some extra cash
Replies: 5
Views: 581

Re: Suggestions on where to put some extra cash

Decide what you want to do, have a plan for how to allocate your assets to meet your objective, and then put your money into those assets.
by dbr
Fri Dec 15, 2017 11:33 am
Forum: Investing - Help with Personal Investments
Topic: Settled Cash in Brokerage Account
Replies: 3
Views: 262

Re: Settled Cash in Brokerage Account

I have cash (core) in my taxable brokerage account. I'm not sure where it came from. Are there tax consequences to moving that to a Roth? Yes, there are definitely tax consequences to moving that to a Roth. It would be considered a Roth contribution, so if you have already made your maximum allowed...
by dbr
Fri Dec 15, 2017 11:27 am
Forum: Personal Finance (Not Investing)
Topic: Should I open a fitness center for extra money?
Replies: 37
Views: 2606

Re: Should I open a fitness center for extra money?

No. It has nothing to do with being "smart" and it is a business venture you don't understand and not an investment.

That does not mean that someone who does understand what they are doing and wants to be in the business should not do it.
by dbr
Fri Dec 15, 2017 11:23 am
Forum: Personal Finance (Not Investing)
Topic: LTC policy increase - keep, reduce coverage or ditch?
Replies: 18
Views: 1289

Re: LTC policy increase - keep, reduce coverage or ditch?

Well, I think when people talk about an individual self-insuring something it does just mean accepting the risk and paying when risk turns up. But it does seem that is a miss-use of the term. The actual principle insurance is to pool risk, which requires a population within which the risk materializ...
by dbr
Fri Dec 15, 2017 10:52 am
Forum: Investing - Help with Personal Investments
Topic: Settled Cash in Brokerage Account
Replies: 3
Views: 262

Re: Settled Cash in Brokerage Account

I have cash (core) in my taxable brokerage account. I'm not sure where it came from. Are there tax consequences to moving that to a Roth? That cash would be dividends and capital gains distributions from your holdings. You can contribute that money to a Roth the same as any other contribution to a ...
by dbr
Fri Dec 15, 2017 9:50 am
Forum: Personal Finance (Not Investing)
Topic: LTC policy increase - keep, reduce coverage or ditch?
Replies: 18
Views: 1289

Re: LTC policy increase - keep, reduce coverage or ditch?

The premium even if increased more and paid for a long time is still relative peanuts compared to the possible benefit and to your spending. On that basis it seems a no brainer to keep insurance like this. On the other hand the benefit may be peanuts compared to your assets, which would make it a no...
by dbr
Fri Dec 15, 2017 9:32 am
Forum: Investing - Theory, News & General
Topic: Difference between VG Growth and Income vs Equity Income Funds
Replies: 5
Views: 497

Re: Difference between VG Growth and Income vs Equity Income Funds

I don't know how the two funds differ but my guess about the term "growth" is that they mean the portfolio can both deliver income and also capital growth. This is different from a fund that holds only "growth" stocks as in opposite to "value." Calling a stock fund "equity income" might mean it prod...
by dbr
Fri Dec 15, 2017 9:28 am
Forum: Investing - Theory, News & General
Topic: Factor-Based Investing: The Long-Term Evidence - Dimson & Marsh
Replies: 85
Views: 2886

Re: Factor-Based Investing: The Long-Term Evidence - Dimson & Marsh

I'm puzzled by this sentence: Almost all investors are knowingly or unknowingly exposed to factors such as size, value, yield, momentum, and risk. Two questions. First, what on earth is meant by "risk?" Is risk, itself, a factor? Is that a mistake, and did they mean to say "the market factor?" Or h...
by dbr
Fri Dec 15, 2017 9:24 am
Forum: Investing - Theory, News & General
Topic: Factor-Based Investing: The Long-Term Evidence - Dimson & Marsh
Replies: 85
Views: 2886

Re: Factor-Based Investing: The Long-Term Evidence - Dimson & Marsh

I think a comment about factor investing is that cap weighting is not diversified across factors as the loading is zero on all the factors except market, unless I don't understand. I think they meant not to make bets on size rather than value rather than x rather than y . . . at any particular time....
by dbr
Fri Dec 15, 2017 9:12 am
Forum: Investing - Help with Personal Investments
Topic: Where to save cash over 5 years.
Replies: 35
Views: 2974

Re: Where to save cash over 5 years.

I think I bonds are great for emergency funds as long as you understand them. I would recommend reading in detail on the treasury direct website lest you get into something you don't understand. Quiz: I bought some I bonds this past May, if I needed them for an emergency tomorrow I'd be in trouble....
by dbr
Thu Dec 14, 2017 6:21 pm
Forum: Investing - Help with Personal Investments
Topic: Where to save cash over 5 years.
Replies: 35
Views: 2974

Re: Where to save cash over 5 years.

get_g0ing wrote:
Thu Dec 14, 2017 11:12 am


I find myself agreeing with you.

Just for curiosity, when you said:
"You would use a longer term tax exempt fund if you will accept the volatility and are in a high tax situation"
What Vanguard fund would that be?
Maybe intermediate term tax exempt VWIUX.
by dbr
Thu Dec 14, 2017 10:43 am
Forum: Investing - Help with Personal Investments
Topic: Where to save cash over 5 years.
Replies: 35
Views: 2974

Re: Where to save cash over 5 years.

That's a good explanation, thank you. I'm not selecting between these. VMLUX, VWSUX, along with FBIDX (Fidelity U.S. Bond Index Fund) were recommended in response to my original post (post #1). When I researched FBIDX, it looked similar to VBMFX. So I wanted to know what was the difference between ...
by dbr
Thu Dec 14, 2017 10:31 am
Forum: Investing - Help with Personal Investments
Topic: Ameriprise :(
Replies: 28
Views: 2454

Re: Ameriprise :(

At this time I'm only inquiring about their life insurance. We've been told before that we don't need the life insurance but it seems odd not to have it after all these years, what with us being closer to death than ever before, lol. You do or don't need life insurance depending on what situation t...
by dbr
Thu Dec 14, 2017 10:25 am
Forum: Investing - Help with Personal Investments
Topic: Investment Account for yearly vacations
Replies: 16
Views: 938

Re: Investment Account for yearly vacations

I can't see any reason for a separate account. Spending on vacations is not different from all other categories of spending. We finance spending by collecting SS and pensions and withdrawing from a portfolio of stocks and bonds. There are no buckets or special accounts. That could be different if on...
by dbr
Thu Dec 14, 2017 10:20 am
Forum: Investing - Help with Personal Investments
Topic: Where to save cash over 5 years.
Replies: 35
Views: 2974

Re: Where to save cash over 5 years.

Can someone explain the difference between VBMFX and the other two funds mentioned above, VMLUX and VWSUX. When would you use each of these? (In searching online, I see that the other fund mentioned FBIDX, is same as VBMFX). Tell me what those funds are and I could try. VBMFX = Vanguard Total Bond ...
by dbr
Thu Dec 14, 2017 10:09 am
Forum: Investing - Help with Personal Investments
Topic: Only Wellington and Wellesley in retirement portfolio. Is that a good idea?
Replies: 15
Views: 1975

Re: Only Wellington and Wellesley in retirement portfolio. Is that a good idea?

The real question is why would this suggestion be preferred over several other possible ideas? The other question is what reasons might there be that this idea is not as good as several other ideas. So far I have seen three reasons (maybe four) mentioned why this idea might not be as good as certain...
by dbr
Thu Dec 14, 2017 9:57 am
Forum: Investing - Help with Personal Investments
Topic: Where to save cash over 5 years.
Replies: 35
Views: 2974

Re: Where to save cash over 5 years.

get_g0ing wrote:
Thu Dec 14, 2017 9:54 am
Can someone explain the difference between VBMFX and the other two funds mentioned above, VMLUX and VWSUX.
When would you use each of these?

(In searching online, I see that the other fund mentioned FBIDX, is same as VBMFX).
Tell me what those funds are and I could try.
by dbr
Thu Dec 14, 2017 9:55 am
Forum: Personal Consumer Issues
Topic: Roofing Question Ice Build Up
Replies: 22
Views: 1284

Re: Roofing Question Ice Build Up

Variable weather conditions leading to a one-off result could happen. If this has never been a problem before and repeats now, then detective work is in order.
by dbr
Thu Dec 14, 2017 9:53 am
Forum: Personal Consumer Issues
Topic: How easy is it to minimize tax liability yourself without a CPA/accountant?
Replies: 26
Views: 2475

Re: How easy is it to minimize tax liability yourself without a CPA/accountant?

Is the question about planning your business operations in a way that minimizes tax liability, or about calculating the tax liability of the business as it exists? Most of the answers have been about the second option, not about the first. Actually, you should want to maximize after-tax income rath...
by dbr
Thu Dec 14, 2017 9:43 am
Forum: Investing - Help with Personal Investments
Topic: Reached 50X annual spending. Now what?
Replies: 56
Views: 5804

Re: Reached 50X annual spending. Now what?

If it is really true that your spending has been estimated with contingencies for things that might happen and the number is 1/50 of your assets, then your asset allocation doesn't matter. More exactly your asset allocation will affect how much uncertainty there will be in your future wealth and how...
by dbr
Thu Dec 14, 2017 9:39 am
Forum: Investing - Help with Personal Investments
Topic: Only Wellington and Wellesley in retirement portfolio. Is that a good idea?
Replies: 15
Views: 1975

Re: Only Wellington and Wellesley in retirement portfolio. Is that a good idea?

It is a plausible idea. I don't think it rises to the level of a good idea due to lack of diversification and due to manager risk.

The correct asset allocation is what meets your need/ability/willingness to take risk. You should think that through before thinking about picking funds.
by dbr
Thu Dec 14, 2017 9:37 am
Forum: Investing - Help with Personal Investments
Topic: Can rental home generate small income?
Replies: 42
Views: 2537

Re: Can rental home generate small income?

As of today a 50 year old male can buy a $100,000 SPIA and get $424/month every month for the rest of his life. At age 60 you can get $482/mo. If that meets your objective why would you try to own a property with all the risk, hazards, and headaches? If you are younger there probably is no investmen...