Search found 27475 matches

by dbr
Mon Jan 21, 2019 11:13 am
Forum: Investing - Help with Personal Investments
Topic: Setting a personal AA glide path
Replies: 9
Views: 694

Re: Setting a personal AA glide path

If one buys into the thought process that risk taken in investing, aka asset allocation, should be determined by need, ability, and willingness to take risk, then it would make sense as one goes through life to occasionally re-evaluate these factors and adjust asset allocation accordingly. The sugge...
by dbr
Mon Jan 21, 2019 10:31 am
Forum: Investing - Help with Personal Investments
Topic: Help re-examine Vanguard fund choices (corrected with full fund names)
Replies: 12
Views: 860

Re: Help re-examine Vanguard fund choices (corrected with full fund names)

Vanguard Brokerage account Vanguard Total Stock Market Index Fund Admiral Shares $3489 ER=.04 Vanguard IRA-Traditional Vanguard Total Bond Market Index Fund Admiral Shares $9160 ER=.05 Vanguard Total Stock Market Index Fund Admiral Shares $8967 ER=.04 Vanguard Total International Bond Index Fund Ad...
by dbr
Mon Jan 21, 2019 10:13 am
Forum: Investing - Theory, News & General
Topic: Was the great bond bull market just plain bull?
Replies: 9
Views: 1040

Re: Was the great bond bull market just plain bull?

Higher rates are good for long term investors because it means they will enjoy higher yields and therefore higher returns on bonds over their investing lifetime. The real benefit to bond investors over that "bull" period was the opportunity to earn high yields on fixed income and not see NAVs eroded...
by dbr
Mon Jan 21, 2019 9:56 am
Forum: Investing - Help with Personal Investments
Topic: Rebalance or not?
Replies: 4
Views: 309

Re: Rebalance or not?

No, use a bands scheme and not too narrow a band. 5% is common but it can be more. Remember your real objective is to just not let your asset allocation drift far away from what you want. If you think 70/30 is what you want, choosing 80/20 or 60/40 would not be a lot different in outcome. Remember t...
by dbr
Sun Jan 20, 2019 11:03 pm
Forum: Personal Consumer Issues
Topic: Is it wise to move from NewYorkCity to Sunnyvale CA, Lifestyle choice to be more outdoorsy - warm weather
Replies: 34
Views: 1774

Re: Is it wise to move from NewYorkCity to Sunnyvale CA, Lifestyle choice to be more outdoorsy - warm weather

I think in general it is wise to experience living in a range of locations and lifestyles. Otherwise you will never know and the perspective is enriching. That said Sunnyvale CA is not a place that would be very appealing to me. At the same time I would never consider living permanently in New York ...
by dbr
Sun Jan 20, 2019 10:54 pm
Forum: Investing - Help with Personal Investments
Topic: Highest Guaranteed Return Investment for My 75 Year-Old Dad?
Replies: 22
Views: 1479

Re: Highest Guaranteed Return Investment for My 75 Year-Old Dad?

Considering that inflation will undercut the value of any fixed dollar investment, I would say there are no guaranteed return investments. It is also tilting at windmills to ask for the "highest." If the issue is to just feel good getting a little more interest rather than a little less, a person ca...
by dbr
Sun Jan 20, 2019 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: Evaluating Job Offer - Longer Commute
Replies: 40
Views: 1642

Re: Evaluating Job Offer - Longer Commute

At my current job, I cannot do any other work. Any other income has to be approved by the company. What? Can you explain this? From my perspective, a job change requires more money, improved quality of life, or title. I don't see any of those in your statements. Lot's of employers are concerned wit...
by dbr
Sun Jan 20, 2019 2:58 pm
Forum: Investing - Help with Personal Investments
Topic: Brand new here, what to do with $50K cash right now
Replies: 12
Views: 1727

Re: Brand new here, what to do with $50K cash right now

You won't be taxed twice on anything. Capital gains taxes are on gains and not on principal withdrawn. There would be no gain on money in a savings account or money market fund. Leaving some cash in such assets until you know for sure what to do with the money is a perfectly fine alternative.
by dbr
Sun Jan 20, 2019 2:54 pm
Forum: Personal Finance (Not Investing)
Topic: Evaluating Job Offer - Longer Commute
Replies: 40
Views: 1642

Re: Evaluating Job Offer - Longer Commute

Reading what you say about your current job the subtext is that you will be leaving that employer sooner or later anyway. If that is really the case you have a false proposition here because there is no work at home job and all the choices involve a significant commute. Is it possible this is the re...
by dbr
Sun Jan 20, 2019 2:16 pm
Forum: Personal Finance (Not Investing)
Topic: My daughter's inheritance.
Replies: 75
Views: 9782

Re: Follow-up to: My daughter's inheritance

In general is it sound? Yes. I guess in the soundness department, do you and your daughter understand the risk in stock investing and that the greatest practical danger is to panic, bail out, and sell low in a stock crash? In theory having to go through PAS to panic and sell provides a brake, but th...
by dbr
Sun Jan 20, 2019 2:13 pm
Forum: Personal Consumer Issues
Topic: 2019 Camry vs RAV4
Replies: 38
Views: 3394

Re: 2019 Camry vs RAV4

The Subaru Outback is essentially a raised tarted up Legacy wagon. They raise it and add some plastic cladding, but it is based on the Legacy. Worth a look, IMO, Compared to the Rav4 and CRV. Being up high also involves road clearance. The practical use of this is less chance of getting stuck drivi...
by dbr
Sun Jan 20, 2019 2:07 pm
Forum: Personal Finance (Not Investing)
Topic: Evaluating risk of home value dropping: how much riskier is single home vs housing market?
Replies: 17
Views: 1266

Re: Evaluating risk of home value dropping: how much riskier is single home vs housing market?

This paper seems to be the kind of research that would apply. It is from the UK, very theoretical, and probably not immediately helpful:

https://core.ac.uk/download/pdf/6291879.pdf

Some research on Google may turn up info.
by dbr
Sun Jan 20, 2019 2:02 pm
Forum: Investing - Help with Personal Investments
Topic: Parting ways with financial advisor--is this allocation right for now?
Replies: 8
Views: 511

Re: Parting ways with financial advisor--is this allocation right for now?

A baseline is to determine what allocation you want to stocks vs bonds and then figure out how to implement that using no more than three kinds of funds. Which account to locate what in would be more fussy. I don't suppose that advisor actually explained where you are in stock/bond asset allocation ...
by dbr
Sun Jan 20, 2019 1:53 pm
Forum: Personal Consumer Issues
Topic: 2019 Camry vs RAV4
Replies: 38
Views: 3394

Re: 2019 Camry vs RAV4

I would not get a 2018 Toyota anything. 2019 I believe is the first year they've added support for CarPlay and Android Auto. Cars are out of style right now. People get hooked on "sitting up high" in their vehicles, I suppose. Sitting up high in a vehicle is not a trivial benefit. At least with agi...
by dbr
Sun Jan 20, 2019 1:49 pm
Forum: Personal Finance (Not Investing)
Topic: My daughter's inheritance.
Replies: 75
Views: 9782

Re: Follow-up to: My daughter's inheritance

Given that you're asking about being able to manage it, I would recommend the following: For now, put everything in a single target date fund. Later, as it becomes more clear that investing in the entire market can easily be done with 3 funds, create a 3 fund and move to that. Or just leave it in t...
by dbr
Sun Jan 20, 2019 1:43 pm
Forum: Personal Finance (Not Investing)
Topic: Best Credit Card for International Travel
Replies: 49
Views: 2735

Re: Best Credit Card for International Travel

I have found credit union actual pin priority cards and contactless cards convenient when traveling outside the US, also even in the US. Pin and contactless are making inroads here. I have no interest in carrying and whipping out a smart phone to pay for things all over the place. One contactless ca...
by dbr
Sun Jan 20, 2019 1:37 pm
Forum: Investing - Help with Personal Investments
Topic: Need help with my 10% cash just sitting there.
Replies: 10
Views: 1237

Re: Need help with my 10% cash just sitting there.

chevca wrote:
Sun Jan 20, 2019 1:23 pm
It sounds like you have already won the game... just on your bond side alone! Congrats!

With that in mind, does it really matter where you put this in your portfolio? Only a little, IMO. Put it wherever you'd like.
Yes, this is the actual answer.
by dbr
Sun Jan 20, 2019 1:35 pm
Forum: Personal Finance (Not Investing)
Topic: My daughter's inheritance.
Replies: 75
Views: 9782

Re: Follow-up to: My daughter's inheritance

You might notice that a lot of that breakdown is really just the allocation within a single fund, namely total stock and total bond index funds. The actual number of funds is just 6. Two of those funds are to tilt the bond allocation a little more to investment grade, which is a sort of neither here...
by dbr
Sun Jan 20, 2019 1:15 pm
Forum: Personal Finance (Not Investing)
Topic: Trying to reduce base expenses
Replies: 9
Views: 1184

Re: Trying to reduce base expenses

The obvious(?) solution to variable income is that you are supposed to have backup savings to even out years of greater or lesser income. What do your assets look like? Does throwing money at the mortgage mean you are skimping on savings reserves? Where is that $350k going and what is your history o...
by dbr
Sun Jan 20, 2019 1:05 pm
Forum: Investing - Theory, News & General
Topic: What is the evidence against slice and dice?
Replies: 70
Views: 7225

Re: What is the evidence against slice and dice?

I am not sure I ever understood what was meant by slice and dice. I think a tilted portfolio has to be slice and dice but I am not sure what it would mean to slice and dice a portfolio and not have it tilted. Would that mean an asset allocation matching the market at all times but held by owning sep...
by dbr
Sun Jan 20, 2019 12:47 pm
Forum: Investing - Help with Personal Investments
Topic: High Yield vs Inter-Term Tax Exempt - Considering Rebalancing
Replies: 7
Views: 339

Re: High Yield vs Inter-Term Tax Exempt - Considering Rebalancing

If you go back and carefully read OP's post, it is about High Yield Tax Exempt, not about High Yield corporate. Some of the responses seem to have missed this fact. It could also be a comment that holding any High Yield Tax Exempt takes jusification and the better idea is to just stick to intermedi...
by dbr
Sun Jan 20, 2019 12:44 pm
Forum: Personal Finance (Not Investing)
Topic: Divorce w/child. Spouse wants to move.
Replies: 127
Views: 7641

Re: Divorce w/child. Spouse wants to move.

It would be nice to know what the wife thinks is a fair split of the assets. Maybe there is not even a problem on that issue. That's the funny part. Sounds like that hasn't even been brought up yet. Or, maybe the ex just thinks everything will be going 50/50 and OP wants to drop this bomb? I'm stil...
by dbr
Sun Jan 20, 2019 12:35 pm
Forum: Personal Finance (Not Investing)
Topic: Divorce w/child. Spouse wants to move.
Replies: 127
Views: 7641

Re: Divorce w/child. Spouse wants to move.

It would be nice to know what the wife thinks is a fair split of the assets. Maybe there is not even a problem on that issue.
by dbr
Sun Jan 20, 2019 12:13 pm
Forum: Investing - Help with Personal Investments
Topic: High Yield vs Inter-Term Tax Exempt - Considering Rebalancing
Replies: 7
Views: 339

Re: High Yield vs Inter-Term Tax Exempt - Considering Rebalancing

There might be two thoughts. 1. You get to pay your money and take your choice. What that choice is comes down to your own judgement and preference. 2. If you hold a long term investment portfolio of stocks and bonds, then the biggest lever on risk and return is the allocation between stocks and bon...
by dbr
Sun Jan 20, 2019 12:07 pm
Forum: Investing - Help with Personal Investments
Topic: VNYTX: Municipal Bond Fund
Replies: 5
Views: 557

Re: VNYTX: Municipal Bond Fund

If you don't sell your shares, can you still loose money in a bond fund such as VNYTX? Tabulated after inflation return of exactly what you paid for the bond is a loss of money. That loss is made up if the interest payments exceed the loss due to inflation. Also the coupon paid, while fixed in nomi...
by dbr
Sun Jan 20, 2019 11:01 am
Forum: Investing - Help with Personal Investments
Topic: Taxable account as part of 2-fund AA - balancing, tax efficiency, etc.
Replies: 2
Views: 247

Re: Taxable account as part of 2-fund AA - balancing, tax efficiency, etc.

Once retired I probably would not worry so much about exact rebalancing. I wouldn't rebalance if it starts costing tax money and the balance is not seriously out of whack. When it comes to where the balance is seriously out of whack you have to make some decisions regarding risk. I would say being w...
by dbr
Sun Jan 20, 2019 10:43 am
Forum: Investing - Help with Personal Investments
Topic: Any mutual fund or group of stocks which pay dividends
Replies: 10
Views: 806

Re: Any mutual fund or group of stocks which pay dividends

Sure, look up Vanguard Dividend Growth, Dividend Appreciation, and/or High Dividend Fund and the equivalents at other fund companies. There is also Equity Income, Wellington, Wellesley, etc.

Then be prepared for this: https://www.google.com/search?sitesearc ... +investing
by dbr
Sun Jan 20, 2019 10:31 am
Forum: Investing - Help with Personal Investments
Topic: Need help with my 10% cash just sitting there.
Replies: 10
Views: 1237

Re: Need help with my 10% cash just sitting there.

You might consider series I savings bonds for a portion of this cash. I-bonds can defer federal tax, are state tax exempt, and are currently paying .5% over the rate of inflation. https://www.treasurydirect.gov/indiv/products/prod_ibonds_glance.htm That is a good idea if the amount involved can be ...
by dbr
Sun Jan 20, 2019 10:00 am
Forum: Personal Finance (Not Investing)
Topic: Best Credit Card for International Travel
Replies: 49
Views: 2735

Re: Best Credit Card for International Travel

Not with that card, but I've found a good solution to that is to put your card(s) in either Apple/Google Pay (depending on if you're a iPhone/Android user) and then pay with contactless. No signature or pin (other than unlocking your phone) required, and almost every major card works this way. You ...
by dbr
Sun Jan 20, 2019 9:55 am
Forum: Investing - Theory, News & General
Topic: ETF turnover effect on return
Replies: 6
Views: 637

Re: ETF turnover effect on return

All funds have costs to buy and sell and may have income from security lending. These are not in the ER. One can research reports for various funds and try to extract that data. Sometime one sees the estimate that the impact is 1% in cost for every 100% in turnover. I don't know if there are special...
by dbr
Sun Jan 20, 2019 9:53 am
Forum: Investing - Theory, News & General
Topic: Bogle "5% Gold"
Replies: 75
Views: 6826

Re: Bogle "5% Gold"

A-Commoner wrote:
Sun Jan 20, 2019 9:41 am
Should gold be considered part of your emergency fund? For example, if you have a 6 month e-fund, keep 4 months worth of cash or short term bonds and 2 months worth of gold?
The price of gold is highly volatile. That is not usually what one has in mind for an emergency fund.
by dbr
Sun Jan 20, 2019 9:51 am
Forum: Investing - Help with Personal Investments
Topic: Need help with my 10% cash just sitting there.
Replies: 10
Views: 1237

Re: Need help with my 10% cash just sitting there.

Wellesley is part stock and part bond and you don't specify where those parts fall in your allocation. Assuming you know what stock/bond allocation you want and you already have that, then you could shift the cash part of that allocation to the munis or to Wellesley and take a little back from your ...
by dbr
Sun Jan 20, 2019 9:45 am
Forum: Investing - Help with Personal Investments
Topic: Bonus and 401K Stable income fund option
Replies: 5
Views: 340

Re: Bonus and 401K Stable income fund option

It is extraordinarily difficult to time the market and come out ahead. You can just as easily miss a significant run-up while you are waiting for the market to crash, and, once invested, you have to decide when to cash out again. If the real idea is to be 100% invested in stocks, just do it.
by dbr
Sat Jan 19, 2019 10:25 pm
Forum: Personal Consumer Issues
Topic: Son moving to Denver from California
Replies: 39
Views: 2561

Re: Son moving to Denver from California

An irony about the Midwest is I read an article that states most (like 75%) of Upper Midwest drivers don't bother to mount winter tires as such ever. That would be Minnesota, Wisconsin, and Michigan. Interesting. Growing up in Alaska, nearly 100% of people put studded tires on for the winter. If yo...
by dbr
Sat Jan 19, 2019 7:17 pm
Forum: Personal Consumer Issues
Topic: Is California worth the premium?
Replies: 89
Views: 5027

Re: Is California worth the premium?

I know people who most definitely choose to live in California, specifically SoCal and even more specifically SB. I also know people who have been ecstatic to no longer live in California, at least not LA area. I guess it is up to the individual. I for one would have/have had no interest in an uphil...
by dbr
Sat Jan 19, 2019 6:04 pm
Forum: Personal Consumer Issues
Topic: Son moving to Denver from California
Replies: 39
Views: 2561

Re: Son moving to Denver from California

An irony about the Midwest is I read an article that states most (like 75%) of Upper Midwest drivers don't bother to mount winter tires as such ever. That would be Minnesota, Wisconsin, and Michigan. Apparently the perception exists that it isn't worth the bother in spite of whatever objective data ...
by dbr
Sat Jan 19, 2019 4:48 pm
Forum: Investing - Help with Personal Investments
Topic: Term investments planning (5 , 10, 15 years out)
Replies: 2
Views: 161

Re: Term investments planning (5 , 10, 15 years out)

I think a useful view of what the outcomes can be for different asset allocations over time is to plug the scenario into www.firecalc.com with no contributions or withdrawals. The program prints out a chart of what would have happened in each of a hundred plus actual past years. FireCalc is a little...
by dbr
Sat Jan 19, 2019 4:43 pm
Forum: Personal Finance (Not Investing)
Topic: 401k - withdraw all at once? check my math
Replies: 11
Views: 734

Re: 401k - withdraw all at once? check my math

Right a rollover should work. Does the current plan not have a stable value fund or a short term bond fund that is just as suitable for her stated need as a savings account. On the other hand I guess your tax estimate is right (I haven't done or looked at 2018 tax forms) and maybe it is worth it to ...
by dbr
Sat Jan 19, 2019 4:36 pm
Forum: Investing - Theory, News & General
Topic: Risk Definition By Warren Buffet
Replies: 17
Views: 905

Re: Risk Definition By Warren Buffet

I’m reading this as Buffett primarily thinking about pension funds and endowments, then just throwing in “individual investors” in there, although I’m skeptical the advice applies except perhaps to 20-something accumulators. Individual savers are in a much more precarious position and at the back o...
by dbr
Sat Jan 19, 2019 4:05 pm
Forum: Investing - Help with Personal Investments
Topic: Any bond gurus?
Replies: 13
Views: 1196

Re: Any bond gurus?

It seems like you are trying to find characteristics of this fund to dissuade your friend from investing with EJ, but I doubt a bond fund with reasonable credit quality and duration and expense ratio is going to produce a compelling reason. If he really wants to stay with EJ, I'd consider letting i...
by dbr
Sat Jan 19, 2019 4:02 pm
Forum: Investing - Help with Personal Investments
Topic: Stable value fund in 401k instead of total bond market fund?
Replies: 9
Views: 530

Re: Stable value fund in 401k instead of total bond market fund?

On the other hand the benefit of fixed value in fixed in income to a long term investor in stocks and bonds is illusory. The key to that statement is "long term." But over the long-term, stocks could be argued to be less risky than fixed income. Many, perhaps even most, investors buy bonds to provi...
by dbr
Sat Jan 19, 2019 3:57 pm
Forum: Investing - Help with Personal Investments
Topic: Stable value fund in 401k instead of total bond market fund?
Replies: 9
Views: 530

Re: Stable value fund in 401k instead of total bond market fund?

In general stable value fund interest rates lag current rate curves, meaning that stable value funds may be lagging current yields until they catch up. This works both up and down.
by dbr
Sat Jan 19, 2019 3:34 pm
Forum: Investing - Theory, News & General
Topic: Risk Definition By Warren Buffet
Replies: 17
Views: 905

Re: Risk Definition By Warren Buffet

I recall having heard similar comments from Merton's luncheon speech at a SS research symposium a few years back. Merton discussed the risk of long term bonds not keeping up with inflation. No mention of TIPS were made at the time. It makes sense to me that stocks have the potential of beating infl...
by dbr
Sat Jan 19, 2019 3:28 pm
Forum: Investing - Help with Personal Investments
Topic: Pls advise on the deployment of 3 fund portfolio, Thank you!
Replies: 7
Views: 642

Re: Pls advise on the deployment of 3 fund portfolio, Thank you!

Also now what I am really questioning about is the deployment plan. Based on the current stock market, shall I put in $11K at one time and make the purcase or shall I put let's $55K before APR for 2018 and just invest a lum sum at a time? I heard that a lump-sum investment will outperform the alter...
by dbr
Sat Jan 19, 2019 3:25 pm
Forum: Investing - Help with Personal Investments
Topic: Stable value fund in 401k instead of total bond market fund?
Replies: 9
Views: 530

Re: Stable value fund in 401k instead of total bond market fund?

Stable value funds can be a very good investment only available in a 401k. While I think there is a record of safety, it is still true that the assets are held in an entity specific to your plan, distinct for example from holding a fund of US Treasuries, which are backed by the US Government. I thin...
by dbr
Sat Jan 19, 2019 3:09 pm
Forum: Investing - Theory, News & General
Topic: Risk Definition By Warren Buffet
Replies: 17
Views: 905

Re: Risk Definition By Warren Buffet

It's a long term view of risk or more cynically a rich person's view of risk. Not everyone can act rationally in the face of a steep drawdown, and not everyone can afford to ignore a steep draw down. For some of us a steep drawdown will be life changing, for example if you become disabled at the ag...
by dbr
Sat Jan 19, 2019 3:08 pm
Forum: Investing - Theory, News & General
Topic: Risk Definition By Warren Buffet
Replies: 17
Views: 905

Re: Risk Definition By Warren Buffet

Risk is not a defined word. Risk is risk of something, and that something can be a lot of different things, several of which are of interest to investors. One of those is the chance one will not reach a certain financial objective, thinking usually of how much money will be accumulated at the end of...
by dbr
Sat Jan 19, 2019 2:59 pm
Forum: Investing - Theory, News & General
Topic: Risk Definition By Warren Buffet
Replies: 17
Views: 905

Re: Risk Definition By Warren Buffet

After taxes it is difficult for TIPS to keep up with inflation whereas stock investments do have a shot of keeping up with or exceedingly inflation after taxes I didn't know taxes eroded the value of tax-advantaged accounts. Or, maybe they don't. To withdraw money from IRA/401k accounts you have to...
by dbr
Sat Jan 19, 2019 12:25 pm
Forum: Personal Finance (Not Investing)
Topic: Navigating Through the Nursing Home Search
Replies: 21
Views: 1072

Re: Navigating Through the Nursing Home Search

Search for Elderly Waiver program for your state.

Example from a random state: https://dhs.iowa.gov/sites/default/file ... 1920191724

I am not sure how helpful this may be for someone with a terminal illness, but maybe it will help.
by dbr
Sat Jan 19, 2019 10:56 am
Forum: Personal Finance (Not Investing)
Topic: FIL diagnosed with Alzheimers/Dementia at age 55 -- any advice for financial help?
Replies: 8
Views: 1106

Re: FIL diagnosed with Alzheimers/Dementia at age 55 -- any advice for financial help?

Is he currently managing his own money? If so, is there a plan in place to put someone else in charge of his affairs as he becomes less able to make decisions on his own? +1 It would also be good to get all the legal paperwork in order while he is still capable enough to sign it. It would be good t...