Search found 25276 matches

by dbr
Tue Feb 20, 2018 10:27 am
Forum: Investing - Help with Personal Investments
Topic: Where to park 800K cash
Replies: 7
Views: 1422

Re: Where to park 800K cash

Parking cash means parking cash. For that you don't get investment gains. The usual array of safe, low yielding parking spots is indicated. If you are going to invest again in real estate the best plan is to employ your money in real estate as soon as possible rather than parking it. If you want oth...
by dbr
Tue Feb 20, 2018 10:20 am
Forum: Investing - Help with Personal Investments
Topic: Adviser said I made a big mistake switching 403b to Aspire??
Replies: 18
Views: 1256

Re: Adviser said I made a big mistake switching 403b to Aspire??

It is already clear that you have been robbed. You might investigate whether the deferred load on that one fund phases out in time. Otherwise it might cost you 5% to sell the fund. You should do it anyway. It is probably a bad idea to mix tax accounting and getting sold investments by the same person.
by dbr
Tue Feb 20, 2018 10:09 am
Forum: Investing - Help with Personal Investments
Topic: VAIPX/TIPS: To sell or not to sell
Replies: 14
Views: 820

Re: VAIPX/TIPS: To sell or not to sell

TIPS are bonds, more specifically Treasury "bonds," They have the same default risk as any other Treasuries. They are sensitive to changes in real rather than nominal interest rates, just as other bonds are sensitive to nominal interest rates. The deal in owning TIPS is that the Treasury will increm...
by dbr
Tue Feb 20, 2018 9:59 am
Forum: Investing - Help with Personal Investments
Topic: How big is the 'Madoff risk' -- All of your money at one advisor?
Replies: 18
Views: 1627

Re: How big is the 'Madoff risk' -- All of your money at one advisor?

What do you mean "with an advisor." My investments are in the custody of the brokers with whom I have accounts. The names are like Fidelity, Schwab, etc. There isn't any advisor. Who has custody of your investments? Who buys and sells for you? It shouldn't be anyone but you. I think what you mean is...
by dbr
Tue Feb 20, 2018 9:21 am
Forum: Investing - Theory, News & General
Topic: Sequence of returns risk while accumulating
Replies: 49
Views: 2559

Re: Sequence of returns risk while accumulating

What seems lost on many, though, is that SRR is also very real for those who are still in the accumulation phase (i.e. building their portfolio before retirement). Most of the investment calculators out there demonstrate how much you would have if you invested X dollars over Y time period at Z rate...
by dbr
Mon Feb 19, 2018 6:31 pm
Forum: Investing - Theory, News & General
Topic: Sequence of returns risk while accumulating
Replies: 49
Views: 2559

Re: Sequence of returns risk while accumulating

Thanks for posting that. I often wonder why people think the sequence of returns does not matter during accumulation. It is the same math with a different sign on the withdrawals. Note there is a planning difference that you get to see the outcome before you do something rash like retiring, while in...
by dbr
Mon Feb 19, 2018 6:28 pm
Forum: Investing - Help with Personal Investments
Topic: Help! Preparing for Taxes
Replies: 8
Views: 519

Re: Help! Preparing for Taxes

I can't tell if you have sold anything yet or not. Just transferring the funds to Vanguard is not a taxable event. If your current tax accountant in (strangely) not familiar with tax issues with mutual funds, then find one that is. It is correct that Vanguard does not and should not be involved in y...
by dbr
Mon Feb 19, 2018 6:19 pm
Forum: Investing - Theory, News & General
Topic: Can someone help me explain to my wife...?
Replies: 77
Views: 8310

Re: Can someone help me explain to my wife...?

I find this interesting, so please don't construe this as my being argumentative. I have heard comments analogous to yours. primarily via this forum, several times so I wonder what triggers the behavior you are subjugated to. so bearing that in mind. do you have an IPS that you share with your advi...
by dbr
Mon Feb 19, 2018 5:18 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalancing in a Bear Market
Replies: 7
Views: 560

Re: Rebalancing in a Bear Market

What are some of the best methods for rebalancing a portfolio in a bear market? In particular, if a bear market has resulted in a decline in both equities and bonds, what’s the best method? Intuitively you don’t really want to be selling equities at all when they’re down. Would it be best to just r...
by dbr
Mon Feb 19, 2018 2:51 pm
Forum: Investing - Help with Personal Investments
Topic: What do Bogleheads think of Passive income through Dividend Stocks
Replies: 37
Views: 3249

Re: What do Bogleheads think of Passive income through Dividend Stocks

There are hundreds or maybe thousands of pages of comments on this topic on the forum. Clearly people have different opinions. My distillation of the majority opinion is that the total return, before taxes, of total stock funds is similar to diversified stock funds focused on dividends, so the main...
by dbr
Mon Feb 19, 2018 2:14 pm
Forum: Investing - Theory, News & General
Topic: Can someone help me explain to my wife...?
Replies: 77
Views: 8310

Re: Can someone help me explain to my wife...?

The whole issue hinges on not confusing strategy and outcome. As far as resolving differences in strategy, I am afraid I have no suggestions. Maybe it would work to ask for a plan from Vanguard or Fidelity, etc. But even Fidelity will use this as an opening to sell things and now the problem is to ...
by dbr
Mon Feb 19, 2018 1:03 pm
Forum: Investing - Help with Personal Investments
Topic: What do Bogleheads think of Passive income through Dividend Stocks
Replies: 37
Views: 3249

Re: What do Bogleheads think of Passive income through Dividend Stocks

I can't speak for Bogleheads in general, but my personal suggestion is that investment planning and execution is about a number of considerations in which passive income probably does not appear as an item. The primary elements of investment planning and execution are investing in low cost, diversif...
by dbr
Mon Feb 19, 2018 12:55 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Adjusting a Taxable Account
Replies: 18
Views: 827

Re: Tax Adjusting a Taxable Account

I do tax adjust my numbers as an exercise to make sure I don't drift too much from my planned AA. I tax adjust my tax deferred accounts on a marginal tax rate basis. Adjusting taxable is more difficult as you have pointed out. I do mine in an overly simplistic way which is good enough for AA consid...
by dbr
Mon Feb 19, 2018 12:25 pm
Forum: Investing - Help with Personal Investments
Topic: Transferring from Financial Advisor
Replies: 12
Views: 1143

Re: Transferring from Financial Advisor

1. At some point does it make sense to have a financial advisor? If I take it back over I would go with a 60/40 AA and put it in index funds for both retirement and taxable. My only hesitation is when you factor in tax planning, 529s, and other situations does having someone look over your finances...
by dbr
Mon Feb 19, 2018 11:42 am
Forum: Investing - Help with Personal Investments
Topic: Tax Adjusting a Taxable Account
Replies: 18
Views: 827

Re: Tax Adjusting a Taxable Account

My advice is not to bother.
by dbr
Mon Feb 19, 2018 10:40 am
Forum: Investing - Theory, News & General
Topic: Is it "cute" to invest in sector funds?
Replies: 23
Views: 1403

Re: Is it "cute" to invest in sector funds?

I would say sector investing may not be cute but it is definitely an attempt to replace a good plan with a better plan and without solid grounds to establish that it is a better plan.
by dbr
Mon Feb 19, 2018 10:39 am
Forum: Investing - Theory, News & General
Topic: Can someone help me explain to my wife...?
Replies: 77
Views: 8310

Re: Can someone help me explain to my wife...?

LOL, funniest thread topic ever. I would not want to be the one mansplaining to my wife about finances and the get caught with a market downturn thus leaving her with he biggest I-told-you-so on the planet. Good luck, you now made me grateful for my *'s indifference to all matters financial. Howeve...
by dbr
Mon Feb 19, 2018 10:30 am
Forum: Investing - Theory, News & General
Topic: How many of you use the "4% rule" during retirement?
Replies: 61
Views: 7137

Re: How many of you use the "4% rule" during retirement?

I used it as a planning tool prior to retirement and as a way to get comfortable with retiring early. I've checked my withdrawal rate the first few years and found it to be in the 2.5% range even before taking social security. I've not run out to buy a Ferrari to up my spending rate but we've sched...
by dbr
Mon Feb 19, 2018 10:09 am
Forum: Investing - Help with Personal Investments
Topic: Reinvesting RMDs
Replies: 18
Views: 2069

Re: Reinvesting RMDs

The value of a series of future payments is only infinite if the discount rate is zero, so your second paragraph is simply the result of doing math wrong. In particular either a bad assumption (zero discount rate) or incorrectly summing an infinite series. Yes, my quip made that assumption. It was ...
by dbr
Mon Feb 19, 2018 9:50 am
Forum: Investing - Theory, News & General
Topic: Using cFiresim
Replies: 13
Views: 1347

Re: Using cFiresim

Compare FIRECalc's 100% small cap value and 100% SP500 results. Look at the down side. More volatile investments give bigger up, bigger down. Isn't that all that's going on here? Is it? I was under the impression SCV has outperformed SP500 a little over the past decades. I ran the 100% allocations ...
by dbr
Sun Feb 18, 2018 1:46 pm
Forum: Investing - Help with Personal Investments
Topic: Reinvesting RMDs
Replies: 18
Views: 2069

Re: Reinvesting RMDs

The reasoning is circular. You can't use a my share/their share to do the math until you have done the math to establish that my/their is a valid model. If people want to use it as a mnemonic to remember how it comes out, I guess there is nothing terrible about that, but it is a result and not a pre...
by dbr
Sun Feb 18, 2018 11:44 am
Forum: Personal Finance (Not Investing)
Topic: Doctor wants Social Security number
Replies: 78
Views: 10549

Re: Doctor wants Social Security number

BUT, then you see the real life policy lack of common sense , where people's SS# is basically their Medicare#? Someone in a position of authority couldn't make a common sense thought? The real lack of common sense was when somebody decided Social Security Numbers where secret. At one time SSN was p...
by dbr
Sun Feb 18, 2018 11:11 am
Forum: Personal Finance (Not Investing)
Topic: Effect of spending money on appearance in career
Replies: 79
Views: 5712

Re: Effect of spending money on appearance in career

I wonder how much of this conversation is about how other people perceive a person and how much of it is about how a person perceives themselves. It is never a mistake to refresh for confidence. The suggestion above might be very helpful. Also, ask one's friends. Otherwise, it is usually a positive ...
by dbr
Sun Feb 18, 2018 11:03 am
Forum: Investing - Help with Personal Investments
Topic: Time for a short term bond etf?
Replies: 8
Views: 996

Re: Time for a short term bond etf?

I am a little light in the bond portion of my retirement portfolio. I need to soon put about 6k into my Vanguard SEP-IRA in any case, and am wondering whether it should be BND, VCSH, BSV or something else. The rest of my bond holdings are in total/intermediate bond funds, but are in my Roth-IRA or ...
by dbr
Sun Feb 18, 2018 10:33 am
Forum: Personal Finance (Not Investing)
Topic: what tax rate do I use in calc. [Retirement calculator]
Replies: 2
Views: 270

Re: what tax rate do I use in calc. [Retirement calculator]

You should fill out some dummy tax returns to see what your tax cost actually is. Your income is simple enough it wouldn't take much work to do it. Note that there is no one tax rate as some income is exempt due to personal exemptions, there are deductions, and there are credits. After that the form...
by dbr
Sun Feb 18, 2018 10:16 am
Forum: Personal Finance (Not Investing)
Topic: what is marginal tax rate?
Replies: 23
Views: 1681

Re: what is marginal tax rate?

It may be a useful idea that marginal tax (rate) is a concept applicable to comparing two scenarios. That could include the scenario of adding one more dollar compared to what one had before. It is useful for making decisions between or among alternatives. Effective tax rate is simply a way of expre...
by dbr
Sun Feb 18, 2018 10:08 am
Forum: Investing - Help with Personal Investments
Topic: Reinvesting RMDs
Replies: 18
Views: 2069

Re: Reinvesting RMDs

I think an argument to take the withdrawal later is based on the concept that you only own part of your IRA (the government owns the other part), and the part you own is tax free. If you will pay 25% tax on your distributions, then you really only own 75% of the IRA. Your 75% grows (or falls) tax f...
by dbr
Sat Feb 17, 2018 5:03 pm
Forum: Personal Finance (Not Investing)
Topic: Effect of spending money on appearance in career
Replies: 79
Views: 5712

Re: Effect of spending money on appearance in career

At the same time, I am sitting in meetings in which comments are made about needing to bring another women into the office so clients are more eager to stop by. What?? Is this company stuck in the 1950's or 1960's? :oops: If this their corporate culture, and it is genuinely affecting your career, i...
by dbr
Sat Feb 17, 2018 3:25 pm
Forum: Investing - Theory, News & General
Topic: Retirees: The common sense withdrawal method
Replies: 113
Views: 9101

Re: Retirees: The common sense withdrawal method

Obviously, there are endless discussions here about withdrawal methods usually involving some kind of formulae or calculations. I was wondering if there are people like me who just use common sense...they take out what they need, when they need it. Please share your story. Sure. I do that with the ...
by dbr
Sat Feb 17, 2018 2:01 pm
Forum: Investing - Theory, News & General
Topic: Retirees: The common sense withdrawal method
Replies: 113
Views: 9101

Re: Retirees: The common sense withdrawal method

It would be common sense with respect to anything that you understand something about what you are doing, that you pay attention, that you apply some logic and critical thinking to what you read and hear, and that you don't do things that are stupid. Common sense in retirement does not mean that you...
by dbr
Sat Feb 17, 2018 1:30 pm
Forum: Personal Finance (Not Investing)
Topic: Working for a MegaCorp vs a Small Business
Replies: 19
Views: 1270

Re: Working for a MegaCorp vs a Small Business

huge megaC for me. No complaints though f I had to do it all over again I'd probably start my own business. I was scared of failure w/o a safety net and didn't realize the most successful people were very resilient vis-a-vis failures. I was going to mention that the real alternative is to be your o...
by dbr
Sat Feb 17, 2018 1:27 pm
Forum: Personal Finance (Not Investing)
Topic: Effect of spending money on appearance in career
Replies: 79
Views: 5712

Re: Effect of spending money on appearance in career

I did not work for GM but live in the area. This is a photo of Mary Barra, CEO of GM. This is how most of the women executives I know dress. Obviously she works in a technical industry. If she worked for an advertising organization, I am sure she would might dress differently. https://en.wikipedia....
by dbr
Sat Feb 17, 2018 1:18 pm
Forum: Investing - Theory, News & General
Topic: Retirees: The common sense withdrawal method
Replies: 113
Views: 9101

Re: Retirees: The common sense withdrawal method

Thanks again Mnd. My intuition tells me that the combination of a long bear market in both stocks and bonds is a killer scenario, especially if it happens early on in the retirement period. By definition a long bear market is longer than early-on in retirement. That aside, it is a killer scenario. ...
by dbr
Sat Feb 17, 2018 1:14 pm
Forum: Personal Finance (Not Investing)
Topic: Effect of spending money on appearance in career
Replies: 79
Views: 5712

Re: Effect of spending money on appearance in career

My theory was always that I wanted to get promoted on my merits and not my looks but now it looks like it may actually be getting in my way? I am a man but I got promoted on my "looks." I wanted a management job so went to my 2nd-line manage and was told I was not near the top of the list of manage...
by dbr
Sat Feb 17, 2018 11:17 am
Forum: Personal Finance (Not Investing)
Topic: Working for a MegaCorp vs a Small Business
Replies: 19
Views: 1270

Re: Working for a MegaCorp vs a Small Business

A megacorp is like an index fund and a small business is like investing in a single stock pick.
by dbr
Sat Feb 17, 2018 10:04 am
Forum: Investing - Help with Personal Investments
Topic: Short treasuries or short term bond index fund?
Replies: 13
Views: 831

Re: Short treasuries or short term bond index fund?

What you are missing is that you are agonizing over non-issues. You are already at short duration where the effects are minimal while at the same time it is to the benefit of bond investors for interest rates to be higher. What else are you invested in? Unless everything you have is in bonds and you...
by dbr
Sat Feb 17, 2018 9:59 am
Forum: Investing - Help with Personal Investments
Topic: VFINX Question
Replies: 5
Views: 477

Re: VFINX Question

It is common that brokers do not offer the Admiral version of some Vanguard funds. ETFs are an option and moving the investment to an account at Vanguard might be an option. It really depends on where your other investments are and your preference for how you want to arrange things.
by dbr
Sat Feb 17, 2018 9:43 am
Forum: Investing - Theory, News & General
Topic: I bonds instead of Total bond in a 3-fund portfolio?
Replies: 9
Views: 1236

Re: I bonds instead of Total bond in a 3-fund portfolio?

A comment in general is that the 3 fund portfolio is not an idea that is so prescriptive that anyone should take the discussion as a prohibition against holding anything other than TBM. There is an idea in the 3 fund portfolio that it is very simple to just invest in diverse, low cost, index funds a...
by dbr
Sat Feb 17, 2018 9:21 am
Forum: Personal Finance (Not Investing)
Topic: Effect of spending money on appearance in career
Replies: 79
Views: 5712

Re: Effect of spending money on appearance in career

I just came away from a meeting in which I asked for a promotion and was told likely another six months. No there was nothing I could do extra - my clients love me, my manager loves me, I'm bringing in work, I am out performing. This is driving me crazy as every other person in my position was prom...
by dbr
Sat Feb 17, 2018 9:04 am
Forum: Personal Consumer Issues
Topic: USAA 41% More For Car Insurance
Replies: 43
Views: 2489

Re: USAA 41% More For Car Insurance

If a person wants the least cost for things then that person has to shop. It is that simple and applies to everything one spends money on.
by dbr
Sat Feb 17, 2018 8:50 am
Forum: Investing - Theory, News & General
Topic: Vanguard LifeStrategy Funds vs. Target Date Funds
Replies: 62
Views: 5163

Re: Vanguard LifeStrategy Funds vs. Target Date Funds

Rebalancing just isn't that much of a practical burden. A person should be staying involved with whether or not their investments are appropriate for their situation as years go by anyway. I disagree in part. Some people have jobs that can demand 100% of their attention for weeks at a time. Many ot...
by dbr
Fri Feb 16, 2018 6:07 pm
Forum: Investing - Theory, News & General
Topic: Retirees: The common sense withdrawal method
Replies: 113
Views: 9101

Re: Retirees: The common sense withdrawal method

It's hard to model "common sense", I think it could be argued that what is "common" makes very little "sense"... but a typical person who is disciplined enough to save money across there working life can probably work out something that works... maybe even have a hard time spending down everything ...
by dbr
Fri Feb 16, 2018 11:23 am
Forum: Investing - Theory, News & General
Topic: Vanguard LifeStrategy Funds vs. Target Date Funds
Replies: 62
Views: 5163

Re: Vanguard LifeStrategy Funds vs. Target Date Funds

Further, most of these target date funds eventually move to a very conservative AA of something like 30/70, which is outside the recommended range suggested by the safe withdrawal rate research. It must not be outside the recommended range according to the research at Vanguard, Fidelity, and the ot...
by dbr
Fri Feb 16, 2018 11:12 am
Forum: Investing - Theory, News & General
Topic: Vanguard LifeStrategy Funds vs. Target Date Funds
Replies: 62
Views: 5163

Re: Vanguard LifeStrategy Funds vs. Target Date Funds

Personally, I find the 'glidepaths' for virtually all target date funds to be overly conservative. A 25 year old isn't likely to benefit from having 10% in bonds, for instance; there will not be a significant decrease in fund drawdowns, and this will merely serve as a drag on portfolio returns for ...
by dbr
Fri Feb 16, 2018 11:01 am
Forum: Investing - Help with Personal Investments
Topic: Equity Dividend Fund / ETF at Schwab?
Replies: 20
Views: 2252

Re: Equity Dividend Fund / ETF at Schwab?

I realize that dividends are not the most tax efficient (I'm currently in the low-mid 28% bracket) however for my personal taste I would like to build up a good bit of passive type income in taxable with the goal being eventually to largely live off dividends without touching principal (25-30 years...
by dbr
Fri Feb 16, 2018 10:49 am
Forum: Investing - Theory, News & General
Topic: Retirees: The common sense withdrawal method
Replies: 113
Views: 9101

Re: Retirees: The common sense withdrawal method

We haven't explicitly added the comment that life is very different when a substantial fraction of one's "withdrawal" is actually income streams from pensions, annuities, and Social Security (or even other sources). Whether or not it should be part of the withdrawal method that a person lacking ann...
by dbr
Fri Feb 16, 2018 10:45 am
Forum: Personal Consumer Issues
Topic: USAA 41% More For Car Insurance
Replies: 43
Views: 2489

Re: USAA 41% More For Car Insurance

The total amount of our annual spending that goes to home, auto, and umbrella coverage is so tiny that wasting time on a better or worse quote would be silly. I can understand that these items might loom larger in some household budgets. I find USAA service to be perfectly fine, but we haven't had t...
by dbr
Fri Feb 16, 2018 10:38 am
Forum: Investing - Theory, News & General
Topic: Retirees: The common sense withdrawal method
Replies: 113
Views: 9101

Re: Retirees: The common sense withdrawal method

We haven't explicitly added the comment that life is very different when a substantial fraction of one's "withdrawal" is actually income streams from pensions, annuities, and Social Security (or even other sources). Whether or not it should be part of the withdrawal method that a person lacking annu...
by dbr
Fri Feb 16, 2018 10:31 am
Forum: Investing - Help with Personal Investments
Topic: Which should I use short term corporate or longterm bond index money for roth IRA contribution
Replies: 7
Views: 532

Re: Which should I use short term corporate or longterm bond index money for roth IRA contribution

Hi folks, here is my dilemma. This may be our last Roth IRA contribution for retirement accounts. I have put my emergency money in short term corporate bond index which it lost around $300, while I also have total bond market index which it lost $800 in my brokerage accounts. Which of these I shoul...
by dbr
Fri Feb 16, 2018 10:25 am
Forum: Investing - Help with Personal Investments
Topic: Reality of the market being "down"...
Replies: 10
Views: 1002

Re: Reality of the market being "down"...

I have an older friend that is much much much closer to retirement than I am. He was upset about how "down" the market has been lately. One of the fundamentals of investing is recognizing what it means to hold something the value of which fluctuates significantly while on average having an upward t...