Search found 26548 matches

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: 44
Views: 3327

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: 4
Views: 405

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: 995

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: 32
Views: 2398

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: 708

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: 2701

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: 1759

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: 44
Views: 3327

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: 1809

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: 44
Views: 3327

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: 104
Views: 8545

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: 733

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: 1342

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: 893

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: 893

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: 44
Views: 3327

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...
by dbr
Tue May 22, 2018 11:58 am
Forum: Investing - Help with Personal Investments
Topic: Another help-me-help-my-mother post
Replies: 21
Views: 1910

Re: Another help-me-help-my-mother post

Advice? See a lawyer.
by dbr
Tue May 22, 2018 9:38 am
Forum: Investing - Theory, News & General
Topic: Three-fund portfolio returns and variance drain
Replies: 104
Views: 8545

Re: Three-fund portfolio returns and variance drain

MIretired wrote:
Tue May 22, 2018 9:34 am
Hey. I finally get this. I get the point. Lower volatility of returns results in higher compounded return. Period.
Not forgetting "for the same expected return." A lot of people get confused about that and also there needs to be quantification showing how much can be gained how consistently.
by dbr
Tue May 22, 2018 9:31 am
Forum: Investing - Help with Personal Investments
Topic: How do you stop moving the goal posts.
Replies: 62
Views: 4526

Re: How do you stop moving the goal posts.

Keep setting goal posts. However, the new goal posts may be more about personal growth, family and friends and experience etc rather than work and accumulating money. You will also need to continue managing your resources so redefine those goals as appropriate for you. I already do goal setting in ...
by dbr
Mon May 21, 2018 6:55 pm
Forum: Investing - Help with Personal Investments
Topic: Bond conundrum: looking for recommendations
Replies: 18
Views: 1759

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
Mon May 21, 2018 8:55 am
Forum: Personal Finance (Not Investing)
Topic: Are high dividend stocks advantageous for the 15% tax rate?
Replies: 44
Views: 3327

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

Thanks for the (varying) opinions. I thought I would be told by many to just use an index fund or 3-fund portfolio, so I'm actually surprised there is some positive feedback on my idea that is not in line with the common wisdom. Thanks to everyone and any more opinions would be welcome. jalbert ans...
by dbr
Sun May 20, 2018 8:58 pm
Forum: Investing - Theory, News & General
Topic: Wow! Just discovered "Portfolio Visualizer".
Replies: 6
Views: 2348

Re: Wow! Just discovered "Portfolio Visualizer".

I think these things are intellectually interesting but as practical investing goes optimizing portfolio performance in whatever sense one takes that to be is tilting at windmills. <--- That is an opinion. Don't ask for proof because I don't have a quantified definition of TaWMs. That does not mean ...
by dbr
Sun May 20, 2018 8:53 pm
Forum: Investing - Help with Personal Investments
Topic: Newly widowed, how do I invest 1.5 million life ins. proceeds
Replies: 72
Views: 7591

Re: Newly widowed, how do I invest 1.5 million life ins. proceeds

I did not read all of the replies so this may have been mentioned, but if my wife was about to receive a $1.5 million check to take to the bank, I would caution her that her deposit will likely see off alarms in the investment department, which will likely lead to many calls to "help" her invest it...
by dbr
Sun May 20, 2018 8:47 pm
Forum: Investing - Theory, News & General
Topic: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?
Replies: 76
Views: 9418

Re: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?

The possibility is scary that the glass has turned on 35 years of interest rate declines, which had been preceded by a similar length period of rising rates. How well do all the formulas and break-evens work when rates grind higher for decades, notwithstanding the usual perturbations along the way?...
by dbr
Sun May 20, 2018 7:40 pm
Forum: Investing - Help with Personal Investments
Topic: Investments that are unique *and* sensible?
Replies: 12
Views: 1308

Re: Investments that are unique *and* sensible?

The idea of unique and sensible makes sense broadly speaking. I would suppose I bonds or some type of TIAA account classifies as unique and would be sensible as generally conceived. The G fund probably qualifies as do stable value funds. One might consider CDs as unique in the sense that their use i...
by dbr
Sun May 20, 2018 7:29 pm
Forum: Investing - Theory, News & General
Topic: Three-fund portfolio returns and variance drain
Replies: 104
Views: 8545

Re: Three-fund portfolio returns and variance drain

Dbr, If people are talking about the growth of SD with time the answer is that it increases as SQRT(N) and the annualized SD decreases as 1/SQRT(N). These results are used to confuse people by claiming that over time risk decreases because the annulized SD shrinks when in fact that shrinking annual...
by dbr
Sun May 20, 2018 7:27 pm
Forum: Investing - Help with Personal Investments
Topic: When to and when not to “reinvest dividend and capital gains”
Replies: 24
Views: 2222

Re: When to and when not to “reinvest dividend and capital gains”

Thanks for all your responses. I have to say that I am still a little confused on this topic. Should my age play a role on whether I should reinvest the dividends and capital gains in my taxed and tax advantaged accounts? People who are old enough to be taking withdrawals from a taxable account wou...
by dbr
Sun May 20, 2018 7:18 pm
Forum: Investing - Theory, News & General
Topic: Three-fund portfolio returns and variance drain
Replies: 104
Views: 8545

Re: Three-fund portfolio returns and variance drain

If people are talking about the growth of SD with time the answer is that it increases as SQRT(N) and the annualized SD decreases as 1/SQRT(N). These results are used to confuse people by claiming that over time risk decreases because the annulized SD shrinks when in fact that shrinking annualized S...
by dbr
Sun May 20, 2018 3:23 pm
Forum: Investing - Theory, News & General
Topic: Three-fund portfolio returns and variance drain
Replies: 104
Views: 8545

Re: Three-fund portfolio returns and variance drain

Let's do this thought experiment: It is true that when you always use multiplication as an operator, an reduction of 10% is stronger than an increase of 10%. However, if you use division to model a loss then gains can be viewed in the same footing as loss. For example, I invest $100 in something, a...
by dbr
Sun May 20, 2018 12:49 pm
Forum: Investing - Help with Personal Investments
Topic: Newly widowed, how do I invest 1.5 million life ins. proceeds
Replies: 72
Views: 7591

Re: Newly widowed, how do I invest 1.5 million life ins. proceeds

Wow, you all are so kind to take the time to help. Thank you! Regarding the $5/month I was hoping to withdraw, I could take out less. I could do 4k, possibly even 3K. I know I can trim expenses. I am preparing for the idea that I will sell the house. It is a money sucker, so big and old. Clearly yo...
by dbr
Sun May 20, 2018 12:21 pm
Forum: Investing - Theory, News & General
Topic: Three-fund portfolio returns and variance drain
Replies: 104
Views: 8545

Re: Three-fund portfolio returns and variance drain

Bah, humbug. There is no such thing as volatility drag. It is just the use of mathematics to obfuscate what is going on. If there is a loss due to volatility, it is due to your investment plan. You are buying high and selling low. As for me, I prefer to get my free lunch at the diversification banq...
by dbr
Sun May 20, 2018 10:41 am
Forum: Investing - Help with Personal Investments
Topic: Investment allocation
Replies: 13
Views: 563

Re: Investment allocation

The investment issue is to consider all your investments as one allocation. The tax issue is to distribute different parts of the investment to different types of accounts: https://www.bogleheads.org/wiki/Tax-efficient_fund_placement These two topics can be listed in order of importance as asset all...
by dbr
Sun May 20, 2018 10:34 am
Forum: Investing - Help with Personal Investments
Topic: Newly widowed, how do I invest 1.5 million life ins. proceeds
Replies: 72
Views: 7591

Re: Newly widowed, how do I invest 1.5 million life ins. proceeds

An important consideration would be going to work when the children are no longer at home. This may be affected by the special needs case, but young adult and adults with special needs can often be served by programs that allow the parent to work. This has a huge effect on the issue of spending down...
by dbr
Sun May 20, 2018 10:18 am
Forum: Investing - Help with Personal Investments
Topic: When to and when not to “reinvest dividend and capital gains”
Replies: 24
Views: 2222

Re: When to and when not to “reinvest dividend and capital gains”

I don't think distributing funds to a settlement account is supposed to mean the proceeds are not fairly directly invested into one or another of the assets in the portfolio. The question is usually whether or not to immediately invest each distribution back into the fund producing it or to manually...
by dbr
Sun May 20, 2018 9:58 am
Forum: Investing - Help with Personal Investments
Topic: When to and when not to “reinvest dividend and capital gains”
Replies: 24
Views: 2222

Re: When to and when not to “reinvest dividend and capital gains”

I agree with the above. The issue is one of tactical management and not one of strategy. It can even just come down to personal preference. Most of the time too big a deal is made of it. That is true of many things where the existence of a choice seems to imply an issue where there is none.
by dbr
Sun May 20, 2018 9:56 am
Forum: Investing - Help with Personal Investments
Topic: $1,700,000 from family trust...
Replies: 57
Views: 6695

Re: $1,700,000 from family trust...

For a person unfamiliar with investing I would go to "getting started" and learn more of the basics: https://www.bogleheads.org/wiki/Getting_started There are good books to help including the Boglehead books and I like Larry Swedroe in particular, at least his basic investing books. I wouldn't get w...
by dbr
Sun May 20, 2018 9:50 am
Forum: Investing - Theory, News & General
Topic: Three-fund portfolio returns and variance drain
Replies: 104
Views: 8545

Re: Three-fund portfolio returns and variance drain

^ Good explanation. I noticed in reading the Wiki that there might already be an ambiguity in the first line where average return is mentioned without the qualifier that the term refers to the arithmetic average. The reason this is important is that the conventional data published for returns of inv...
by dbr
Sat May 19, 2018 12:46 pm
Forum: Investing - Theory, News & General
Topic: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?
Replies: 76
Views: 9418

Re: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?

I invest 70% of my portfolio in bonds, not because of returns, but because of balance. Buffett doesn't have to worry about balancing his portfolio (are you kidding?!). He is in a different universe. And what he says is great for him, and he is correct for him. As a mere mortal and a nobody, I have ...
by dbr
Sat May 19, 2018 12:40 pm
Forum: Personal Consumer Issues
Topic: Another road trip Denver to Cheyenne
Replies: 11
Views: 896

Re: Another road trip Denver to Cheyenne

I suggest reconsidering and at least drive Trail Ridge Road in Rocky Mountain National Park. If that doesn't work maybe you can check out Red Rocks, Lookout Mountain (Buffalo Bill Grave), Coors Brewery in Golden, Hwy 93 to Boulder, Eldorado Springs, Boulder, CSU campus in Fort Collins (Fort Collins?...
by dbr
Sat May 19, 2018 11:40 am
Forum: Investing - Theory, News & General
Topic: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?
Replies: 76
Views: 9418

Re: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?

I invest 70% of my portfolio in bonds, not because of returns, but because of balance. Buffett doesn't have to worry about balancing his portfolio (are you kidding?!). He is in a different universe. And what he says is great for him, and he is correct for him. As a mere mortal and a nobody, I have ...
by dbr
Sat May 19, 2018 11:38 am
Forum: Investing - Theory, News & General
Topic: Do I understand duration correctly?
Replies: 33
Views: 2408

Re: Do I understand duration correctly?

The maturity of the bond is decreasing over time. After 1 year, the maturity of a 5 year bond is 4 years. Duration is always less than maturity. As maturity shortens and a bigger proportion of the bonds total payout is the final repayment of principal, the duration comes closer to equaling maturity...
by dbr
Sat May 19, 2018 10:56 am
Forum: Investing - Help with Personal Investments
Topic: Pension and Sociai Security Impact on 4% Rule
Replies: 20
Views: 2400

Re: Pension and Sociai Security Impact on 4% Rule

the "RE" part of FIRE refers to "Retiring Early", often quite early. Not sure if that is what you are contemplating According to a previous thread , the OP is contemplating retiring at 57-58. Somewhat early, but not super early. Maybe use an average withdrawal rate of 3.5% instead of 4% for back-of...
by dbr
Sat May 19, 2018 10:53 am
Forum: Investing - Theory, News & General
Topic: Retirement and Bond Allocation
Replies: 3
Views: 694

Re: Retirement and Bond Allocation

The point of asset allocation is to pick the combination of risk and return that best suits your objectives. It is assumed that early on, in fact as long as one is growing saved wealth, that there is an incentive to invest for high expected return, aka stocks, so as to become wealthy faster. Along w...
by dbr
Sat May 19, 2018 10:42 am
Forum: Investing - Theory, News & General
Topic: Do I understand duration correctly?
Replies: 33
Views: 2408

Re: Do I understand duration correctly?

I know of three useful working definitions for duration: 1. Weighted average time for repayment of all coupons and principal at end 2. Time at which a bond holder is indifferent to a one time change in interest rates because of reinvestment of coupons at new interest rate 3. A measure of price sens...
by dbr
Sat May 19, 2018 10:20 am
Forum: Investing - Theory, News & General
Topic: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?
Replies: 76
Views: 9418

Re: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?

Bonds are a terrible investment compared to stocks is his point. It's an expected return argument and he's right about that. Many bogleheads own bonds but I don't see anyone arguing that bonds have higher expected returns than stocks right now. It comes down to a simple issue of recognizing that in...
by dbr
Sat May 19, 2018 10:16 am
Forum: Investing - Help with Personal Investments
Topic: Pension and Sociai Security Impact on 4% Rule
Replies: 20
Views: 2400

Re: Pension and Sociai Security Impact on 4% Rule

Tax costs and investment costs have to be accounted for in the calculation. They can be included in planned spending. Some models also model tax costs, such as i-ORP. You are not supposed to have significant investment costs, but one should look to make sure.
by dbr
Sat May 19, 2018 10:11 am
Forum: Investing - Theory, News & General
Topic: Do I understand duration correctly?
Replies: 33
Views: 2408

Re: Do I understand duration correctly?

It isn't that simple. As a general mathematical problem the convolution of interest rate increases, changes in NAV and accumulation of interest has to be worked out and the result is not what you quoted. I don't have at hand some of the examples that some posters have put up in the past, but hopeful...
by dbr
Sat May 19, 2018 9:51 am
Forum: Investing - Theory, News & General
Topic: Want Vanguard funds. Need Vanguard account?
Replies: 9
Views: 785

Re: Want Vanguard funds. Need Vanguard account?

Opening an account at Vanguard is straightforward and logical. It doesn't make much sense to do otherwise if you are starting from scratch. If you do need financial advice you can get it from Vanguard Personal Advisory Service of 0.3% AUM. That would save you from a much more costly venture if you f...
by dbr
Sat May 19, 2018 9:39 am
Forum: Investing - Help with Personal Investments
Topic: Pension and Sociai Security Impact on 4% Rule
Replies: 20
Views: 2400

Re: Pension and Sociai Security Impact on 4% Rule

Sure. The question has been asked and answered before. Take the income you want or need, subtract the amount already supplied by pensions and Social Security and fund the remainder from savings. There are many models out there for calculating that problem that do it exactly that way. You could start...
by dbr
Sat May 19, 2018 9:34 am
Forum: Investing - Theory, News & General
Topic: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?
Replies: 76
Views: 9418

Re: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?

During this year's annual Berkshire Hathaway meeting, Buffett said: "Bonds are a terrible investment at anywhere near current yields.” He continued, “The only time bonds were interesting was in the early to mid-1980’s" So what should we invest in besides stocks? Nothing. Buffet's advice is to be 90...