Search found 26988 matches

by dbr
Fri Jun 22, 2018 2:32 pm
Forum: Investing - Theory, News & General
Topic: What does it mean: Rule No. 1: Never lose money
Replies: 69
Views: 5658

Re: What does it mean: Rule No. 1: Never lose money

I think "never lose money" is meant to apply to the selection of individual securities with a great amount of concern for the price paid which is what determines the value. A great company bought at too high a price is a lousy investment. Look at the long dull patch Walmart ran into. Or even Micros...
by dbr
Fri Jun 22, 2018 2:30 pm
Forum: Investing - Help with Personal Investments
Topic: Income Annuities
Replies: 20
Views: 943

Re: Income Annuities

OP asked a similar, but more specific question a year ago. https://www.bogleheads.org/forum/viewtopic.php?f=1&t=218276&p=3357818#p3357818 Without details, no one can answer the current question. "Income annuity" is a pretty vague term. We'd need to know more about the annuity, and about OP. Also th...
by dbr
Fri Jun 22, 2018 1:26 pm
Forum: Investing - Help with Personal Investments
Topic: $1,700,000 from family trust...
Replies: 80
Views: 9421

Re: $1,700,000 "Portfolio Review" update from family trust

It is going to be hard to ward off all of the approaches you are going to get from "asset managers" and you'll both need to be strong. Even if you keep quiet, expect that the bank whose mortgage you pay off and the bank you buy CDs at to push pretty hard for the ability to make 1% (or more) each ye...
by dbr
Fri Jun 22, 2018 12:37 pm
Forum: Investing - Help with Personal Investments
Topic: How can I find out % return on Vanguard Total Bond Index?
Replies: 8
Views: 616

Re: How can I find out % return on Vanguard Total Bond Index?

I'm just looking for a rough mathmatical estimate of what my annual return is assuming I'm earning avg. $6.50 in dividends per month If you want to ignore any change in value of shares, which is part of return, and just account for yield, you can add up your dividends received for a year and divide...
by dbr
Fri Jun 22, 2018 12:21 pm
Forum: Investing - Help with Personal Investments
Topic: How can I find out % return on Vanguard Total Bond Index?
Replies: 8
Views: 616

Re: How can I find out % return on Vanguard Total Bond Index?

The above is fine. If you want a detailed exact answer for the return of a holding from which withdrawals have been taken the strictly correct analysis is internal rate of return which can be configured using the Excel function XIRR. To be really correct you would have to analyze a portfolio that in...
by dbr
Fri Jun 22, 2018 12:16 pm
Forum: Investing - Help with Personal Investments
Topic: Hire financial advisor?
Replies: 10
Views: 710

Re: Hire financial advisor?

I have been living on SS and a small pension. Total monthly income now is $2600. Total monthly expenses have been about $2000 per month. My tax rate for the past 4 years has been zero. With RMD I'm expecting an additional $2170 in monthly income (expected income $4770/mo), and I will have to start ...
by dbr
Fri Jun 22, 2018 12:05 pm
Forum: Investing - Help with Personal Investments
Topic: Income Annuities
Replies: 20
Views: 943

Re: Income Annuities

As for not being COLA'ed, it was not a concern. If I would have received a (private) pension benefit, it would not have been COLA'ed either. How do I know? Because the pension available to me when I started there in 1979 (later terminated and replaced by the cash balance and 401(k) plans in the mid...
by dbr
Fri Jun 22, 2018 11:16 am
Forum: Investing - Help with Personal Investments
Topic: Income Annuities
Replies: 20
Views: 943

Re: Income Annuities

OP asked a similar, but more specific question a year ago. https://www.bogleheads.org/forum/viewtopic.php?f=1&t=218276&p=3357818#p3357818 Without details, no one can answer the current question. "Income annuity" is a pretty vague term. We'd need to know more about the annuity, and about OP. I would...
by dbr
Fri Jun 22, 2018 11:15 am
Forum: Investing - Help with Personal Investments
Topic: $1,700,000 from family trust...
Replies: 80
Views: 9421

Re: $1,700,000 "Portfolio Review" update from family trust

troubleshooter, You definitely came to the right place and your portfolio plan doesn't look unreasonable to me. However, I'd question why so much cash and would be inclined to simplify further. If you were my brother, I'd suggest the Target 2025 fund for nearly 100% of what was left over after payi...
by dbr
Fri Jun 22, 2018 11:08 am
Forum: Personal Consumer Issues
Topic: Most vs. Least satisfying home impovements
Replies: 35
Views: 3024

Re: Most vs. Least satisfying home impovements

I bet the consensus answer is that everyone really likes improved kitchens and baths and hates but wants/needs plumbing, roofs, and electric.
by dbr
Fri Jun 22, 2018 11:04 am
Forum: Investing - Help with Personal Investments
Topic: Seeking advice on investment strategy
Replies: 6
Views: 302

Re: Seeking advice on investment strategy

I really want to maximize my investment earnings. Please give me some advice. This is the basic question of how much risk to take between holding stocks and bonds. Larry Swedroe has advocated a system of need, ability, and willingness to take risk. I suggest digging out one or two of his basic inve...
by dbr
Fri Jun 22, 2018 10:37 am
Forum: Investing - Help with Personal Investments
Topic: I want to cash in VTSAX
Replies: 21
Views: 1189

Re: I want to cash in VTSAX

I'm 34, and I'm okay with this risk . I have a hard time believing you. Having a desire to sell at the highs suggests that you are not OK with the risk of 100% equities. Additionally, any money that you need in the next 5 years should not be in equities. Maybe a short term bond fund. Correct, if yo...
by dbr
Fri Jun 22, 2018 10:36 am
Forum: Investing - Help with Personal Investments
Topic: Income Annuities
Replies: 20
Views: 943

Re: Income Annuities

If you die tomorrow, are you ok with losing out on your lump annuity payment and not leaving it to somebody? Please correct me if I am wrong, but isn't that how these things work? That is correct and is an additional consideration. A person can buy riders on the policy that guarantee various degree...
by dbr
Fri Jun 22, 2018 10:32 am
Forum: Investing - Help with Personal Investments
Topic: I want to cash in VTSAX
Replies: 21
Views: 1189

Re: I want to cash in VTSAX

But if you sell today, and the market keeps going up, you'll come out behind. Buy and hold, stay the course. Investing should not be gambling where you try to beat the house. The long-term 10% annual historical return from the stock market INCLUDES the crashes. Read that again. You didn't have to j...
by dbr
Fri Jun 22, 2018 10:29 am
Forum: Investing - Help with Personal Investments
Topic: I want to cash in VTSAX
Replies: 21
Views: 1189

Re: I want to cash in VTSAX

How much will I have to pay in taxes when I do finally sell my shares? To know that you have to fill out what your tax return will look like at the time. Under current tax law it could be zero, but the effect via phase outs, SS taxability, etc., etc., etc. could be quite large. You can also never s...
by dbr
Fri Jun 22, 2018 10:25 am
Forum: Investing - Theory, News & General
Topic: Retiree do's and don't's in a rising rate environment by Christine Benz
Replies: 3
Views: 687

Re: Retiree do's and don't's in a rising rate environment by Christine Benz

That is a really good article. Maybe a blitz of references to it everytime someone posts in alarm about "rising interest rate environment" would be a good thing. I especially like the reference to a "more nuanced approach." The one thing I wish she had added was to point out that it is a person's wh...
by dbr
Fri Jun 22, 2018 10:19 am
Forum: Investing - Theory, News & General
Topic: Avoiding Capital Gains Tax
Replies: 10
Views: 881

Re: Avoiding Capital Gains Tax

You might want to change to Specific Id so that you can look at each separate lot (dividends reinvested and other purchases) to find some with losses and sell those along with enough with those with small gains to bring up to desired amount. You may not have enough losses to accomplish this. Vangua...
by dbr
Fri Jun 22, 2018 10:00 am
Forum: Investing - Theory, News & General
Topic: Avoiding Capital Gains Tax
Replies: 10
Views: 881

Re: Avoiding Capital Gains Tax

Just to confirm, people are correct in directing you to breakdown the tax liability by tax lots and sell those with the least liability.
by dbr
Fri Jun 22, 2018 9:55 am
Forum: Investing - Help with Personal Investments
Topic: I want to cash in VTSAX
Replies: 21
Views: 1189

Re: I want to cash in VTSAX

I purchased 20K in VTSAX about a year ago. I'm up 15% in 1 year. If I sell today, and then buy the shares back at another upcoming low, will this be to my benefit? Or will I lose some gains in the long-term by repurchasing at a higher price than my original purchase? Trying to time market movements...
by dbr
Fri Jun 22, 2018 9:45 am
Forum: Personal Consumer Issues
Topic: Most vs. Least satisfying home impovements
Replies: 35
Views: 3024

Re: Most vs. Least satisfying home impovements

Most: kitchen, bath, LED bulbs everywhere (almost 100% converted), landscaping, replacing old sidewalks with new concrete. Least: plumbing that had to be dealt with -- well it is satisfying but mostly in the sense of making sure it all still works, no lead water pipes etc. Also -- super most: hiring...
by dbr
Fri Jun 22, 2018 9:40 am
Forum: Investing - Help with Personal Investments
Topic: Income Annuities
Replies: 20
Views: 943

Re: Income Annuities

Recently met with my Fidelity advisor, who after learning a source of income will be stopping in Sept (from a job I retired from two years ago) suggested income annunities to fund essential expenses. Other income comes from social security and of course, can come from savings/investments. I know as...
by dbr
Fri Jun 22, 2018 9:29 am
Forum: Investing - Help with Personal Investments
Topic: $1,700,000 from family trust...
Replies: 80
Views: 9421

Re: $1,700,000 "Portfolio Review" update from family trust

The array of investments you list seems unnecessarily "decorated" with additional funds that are not needed. I would start with a clear understanding of the asset allocation you want and then follow the recommendations for tax efficient fund location to realize that allocation as a three fund portfo...
by dbr
Thu Jun 21, 2018 5:16 pm
Forum: Investing - Help with Personal Investments
Topic: Grandparents requested our help to manage $300K
Replies: 29
Views: 3350

Re: Grandparents requested our help to manage $300K

Hello! I'm Beach's wife and I have an update. Good News - They bought a boat, and are very excited about it. We're happy for them. Bad News - They've been going to "Financial Seminars" :oops: I had no idea people set these things up to take advantage of old people. They really are a target market f...
by dbr
Thu Jun 21, 2018 2:25 pm
Forum: Investing - Theory, News & General
Topic: Does an IPS really need to be 5 pages long to be valuable?
Replies: 54
Views: 2196

Re: Does an IPS really need to be 5 pages long to be valuable?

My IPS Statement is outlined for others, my hares, to follow after my demise. I’m missing something. Why would your heirs need a plan that was intended to meet your goals, after you are gone? Your goals are no longer a factor then. Wouldn’t they just need a list of debts and investing accounts, wit...
by dbr
Thu Jun 21, 2018 12:09 pm
Forum: Investing - Theory, News & General
Topic: Does an IPS really need to be 5 pages long to be valuable?
Replies: 54
Views: 2196

Re: Does an IPS really need to be 5 pages long to be valuable?

I do not have an IPS (Investment Policy Statement). With only three broad market index funds, plus a "stay-the-course" philosophy, I found an IPS to be an unnecessary waste of time. Our lives are frittered away with detail. Simplify. Simplify. -- Henry David Thoreau Thanks! Exactly. My initial IPS ...
by dbr
Thu Jun 21, 2018 12:06 pm
Forum: Investing - Help with Personal Investments
Topic: "Never time the market" vs. lump sum investment
Replies: 45
Views: 1913

Re: "Never time the market" vs. lump sum investment

Because what investors need to hear when they ask this question (which they do almost every day on this board) is not advice about allocation instead of DCA/lump sum: they need the complete answer. Which, it seems, we agree is something like the following. "Using DCA on a windfall instead on invest...
by dbr
Thu Jun 21, 2018 12:03 pm
Forum: Investing - Help with Personal Investments
Topic: Life Strategy Growth Fund, Target Fund, or Total Stock Market
Replies: 45
Views: 2496

Re: Life Strategy Growth Fund, Target Fund, or Total Stock Market

I don't know enough about how the NY teachers pension system works. Does your school district match part of your contribution? Here in MN we all pay about 7.5% employee and 7.5% employer contribution out of every check. This makes it pretty easy to make projections about how much the pension will p...
by dbr
Thu Jun 21, 2018 11:48 am
Forum: Investing - Theory, News & General
Topic: Revisiting Risk and Reward
Replies: 16
Views: 1100

Re: Revisiting Risk and Reward

Siamond, could you please put in option to download the articles as PDF format. (get lots of extraneous material when trying to convert the webpage to PDF using browser). your PDF could keep formatting, pagination, and all attribution Hm. Good question. I don't think there is a standard solution wi...
by dbr
Thu Jun 21, 2018 11:46 am
Forum: Investing - Help with Personal Investments
Topic: Life Strategy Growth Fund, Target Fund, or Total Stock Market
Replies: 45
Views: 2496

Re: Life Strategy Growth Fund, Target Fund, or Total Stock Market

I would start by figuring out how much your teachers pension fund will pay you in retirement, and at what age you can take it. It's probably some formula like 50% of your highest years salary. Once you know this you will have a better target as to how much you have to save in your personal accounts...
by dbr
Thu Jun 21, 2018 11:44 am
Forum: Investing - Help with Personal Investments
Topic: "Never time the market" vs. lump sum investment
Replies: 45
Views: 1913

Re: "Never time the market" vs. lump sum investment

But Vanguard poses it as being about the wrong question and the wrong odds. No. This question (DCA vs lump sum investment) is not only an INCREDIBLY common question, even among investors with some experience, but it is EXACTLY the question posed by the OP. Issues like this, where the intuitive acti...
by dbr
Thu Jun 21, 2018 11:27 am
Forum: Investing - Theory, News & General
Topic: Does an IPS really need to be 5 pages long to be valuable?
Replies: 54
Views: 2196

Re: Does an IPS really need to be 5 pages long to be valuable?

The recommendation for an IPS is to ensure that people think through their investing properly rather than flying around with wrong, half-baked, or constantly waffling and flapping in the breeze ideas. Once that purpose is achieved or if a person is not doing that, it isn't needed. An IPS might be a ...
by dbr
Thu Jun 21, 2018 11:17 am
Forum: Investing - Help with Personal Investments
Topic: Life Strategy Growth Fund, Target Fund, or Total Stock Market
Replies: 45
Views: 2496

Re: Life Strategy Growth Fund, Target Fund, or Total Stock Market

I would start by figuring out how much your teachers pension fund will pay you in retirement, and at what age you can take it. It's probably some formula like 50% of your highest years salary. Once you know this you will have a better target as to how much you have to save in your personal accounts...
by dbr
Thu Jun 21, 2018 10:25 am
Forum: Investing - Help with Personal Investments
Topic: "Never time the market" vs. lump sum investment
Replies: 45
Views: 1913

Re: "Never time the market" vs. lump sum investment

Vanguard does publish a misleading result, however. They state that lump sum comes out ahead about two thirds of the time. This is true but the misleading part is that the possibility that DCA comes out ahead 1/3 of the time makes the proposition sound like a bet with odds. I'm not sure what you me...
by dbr
Thu Jun 21, 2018 10:19 am
Forum: Investing - Help with Personal Investments
Topic: What should be my stock/bond allocation?
Replies: 21
Views: 1472

Re: What should be my stock/bond allocation?

Thank you for your responses. I am new to this so let me give some more detail. The sale of the business will generate all cash for us (8 million). Our business was everything. Outside of the sale, we have two years worth of living expenses and a house in which we have 65% equity. To cover 3 kids a...
by dbr
Thu Jun 21, 2018 10:05 am
Forum: Investing - Help with Personal Investments
Topic: "Never time the market" vs. lump sum investment
Replies: 45
Views: 1913

Re: "Never time the market" vs. lump sum investment

I think that just like choosing an appropriate asset allocation for your investments, deciding between a lump sum vs. periodic strategy comes down to which allows you to sleep well (or better) at night and stick with your decision . Over the long-term the market goes up so there's a greater likelih...
by dbr
Thu Jun 21, 2018 10:00 am
Forum: Investing - Help with Personal Investments
Topic: "Never time the market" vs. lump sum investment
Replies: 45
Views: 1913

Re: "Never time the market" vs. lump sum investment

Vanguard has a paper which may help in your situation, as it looks to answer the question How might an individual who receives a $1 million windfall approach the decision of investing those funds immediately versus dollar-cost averaging the investment over time? Thanks for providing that link. Vang...
by dbr
Thu Jun 21, 2018 9:40 am
Forum: Investing - Help with Personal Investments
Topic: "Never time the market" vs. lump sum investment
Replies: 45
Views: 1913

Re: "Never time the market" vs. lump sum investment

Well, maybe the presumption that the asset allocation needs thinking through is not wrong at all.
by dbr
Thu Jun 21, 2018 9:38 am
Forum: Personal Consumer Issues
Topic: Surprise - Costco sells - but does not install vehicle batteries
Replies: 74
Views: 4266

Re: Surprise - Costco sells - but does not install vehicle batteries

I would be with the people who may prefer that a mass retailer not attempt to install the battery. It might not even be completely stupid with a current model vehicle under warranty to have a dealer do it so there is no dispute about who caused what to stop working. My position is a little jaded hav...
by dbr
Thu Jun 21, 2018 9:33 am
Forum: Investing - Help with Personal Investments
Topic: Helping mom with inheritance. Help!
Replies: 13
Views: 1354

Re: Helping mom with inheritance. Help!

I would climb in the bandwagon of splitting the money between an SPIA and retaining some of it for emergencies. Is there any other resource for emergencies? If that is actually you, then maybe all the amount could go for an SPIA. Also maybe there are some current back expenses that need paying? Thos...
by dbr
Thu Jun 21, 2018 9:26 am
Forum: Personal Consumer Issues
Topic: 1st Car Mechanic service experience
Replies: 41
Views: 2035

Re: 1st Car Mechanic service experience

The fraction of our spending that goes to maintenance and operation of vehicles is so small as to be negligible. The delta on whether or not I do it myself is below negligible. The delta on what gas mileage we get is below negligible. These facts were so even when we had to drive cars to get to work...
by dbr
Thu Jun 21, 2018 9:20 am
Forum: Investing - Theory, News & General
Topic: Do you invest in Real Estate ? Why ?
Replies: 61
Views: 5225

Re: Do you invest in Real Estate ? Why ?

No I don't want to be bothered with it and there is no purpose to be served by doing it. I do own the house we live in. That is not the same thing as you mean, I am sure.

I also don't tilt to factors because I don't need to and I don't want to.
by dbr
Thu Jun 21, 2018 9:12 am
Forum: Investing - Help with Personal Investments
Topic: What should be my stock/bond allocation?
Replies: 21
Views: 1472

Re: What should be my stock/bond allocation?

40/60 to 60/40 are probably all reasonable. The main thing is to just be cognizant of the fact that negative saving at a younger age leaves less for the future. There is nothing intrinsically wrong with that. It might be the most productive thing is to model the situation for the long term in FireCa...
by dbr
Thu Jun 21, 2018 9:05 am
Forum: Investing - Help with Personal Investments
Topic: "Never time the market" vs. lump sum investment
Replies: 45
Views: 1913

Re: "Never time the market" vs. lump sum investment

Thank you all for all the helpful responses! I understand your points about this approach of waiting for a crash being a loser's game. The asset allocation I am interested in is 100% equity, and I intend on not touching it for the next 10+ years at least (regardless of market conditions), this is w...
by dbr
Thu Jun 21, 2018 9:03 am
Forum: Investing - Theory, News & General
Topic: Does an IPS really need to be 5 pages long to be valuable?
Replies: 54
Views: 2196

Re: Does an IPS really need to be 5 pages long to be valuable?

Are you finding the suggestions in the Wiki not adequate: https://www.bogleheads.org/wiki/Investment_policy_statement#Example_IPS I don't know if one of those is five pages somehow. I have interesting experiences at school with kids who write 25 word one page essays by skipping every line of a wide ...
by dbr
Thu Jun 21, 2018 8:51 am
Forum: Investing - Theory, News & General
Topic: Does an IPS really need to be 5 pages long to be valuable?
Replies: 54
Views: 2196

Re: Does an IPS really need to be 5 pages long to be valuable?

In my opinion such an IPS is insane and has confused planning with execution. It might be a person should have detailed procedures for execution, but if that is the case the direction had better be tested with whoever might eventually need to follow it. Also, plans for actual operations have to be u...
by dbr
Thu Jun 21, 2018 8:47 am
Forum: Investing - Help with Personal Investments
Topic: "Never time the market" vs. lump sum investment
Replies: 45
Views: 1913

Re: "Never time the market" vs. lump sum investment

My hypothesis is that people who can't decide between investing now and waiting are really people who have not resolved what their asset allocation should be. It the prospect is too scary it is probably because your anticipated asset allocation is too risky. At least that is something to think abou...
by dbr
Thu Jun 21, 2018 8:35 am
Forum: Investing - Help with Personal Investments
Topic: "Never time the market" vs. lump sum investment
Replies: 45
Views: 1913

Re: "Never time the market" vs. lump sum investment

My hypothesis is that people who can't decide between investing now and waiting are really people who have not resolved what their asset allocation should be. It the prospect is too scary it is probably because your anticipated asset allocation is too risky. At least that is something to think about.
by dbr
Thu Jun 21, 2018 8:32 am
Forum: Investing - Help with Personal Investments
Topic: what to do with my heavy cash position
Replies: 8
Views: 572

Re: what to do with my heavy cash position

What information are you looking at that is causing confusion. Censoring bad information is a good starting point. One idea is to stop looking at all the baloney that is posted about DCA. I don't know where this comes from, but it is baloney. If you have clear reasoning about why you prefer to be 8...
by dbr
Thu Jun 21, 2018 8:17 am
Forum: Investing - Help with Personal Investments
Topic: Considering adding VWALX; pros-cons
Replies: 13
Views: 1196

Re: Considering adding VWALX; pros-cons

The primary purpose of bonds in a portfolio is to mitigate risk. A common wisdom is to take your risks on the stock side of your portfolio where you can. So while the pro of the high-yield muni may be higher immediate income, you've outlined the cons already. Just keep in mind that the high-yield m...