Search found 24077 matches

by dbr
Mon Dec 11, 2017 5:53 pm
Forum: Investing - Help with Personal Investments
Topic: Choose IRA Rollover Provider - investment options
Replies: 5
Views: 239

Re: Choose IRA Rollover Provider - investment options

Why not decide on an investment strategy such as holding a three fund portfolio, total stock market, that kind of thing and check what funds are available at different shops that meet your strategy at lowest cost. That is a better idea than trying to compare fund performance. Also if you are dealing...
by dbr
Mon Dec 11, 2017 5:48 pm
Forum: Personal Finance (Not Investing)
Topic: using capital gains to offset capital losses
Replies: 5
Views: 355

Re: using capital gains to offset capital losses

Capital losses, short and long term, offset their corresponding gains first. Any excess losses are then used to offset any other residual gains. Finally, if you still have net losses they are applied to your total income for the year, up to 3k and the rest carried over to the following year, as sho...
by dbr
Mon Dec 11, 2017 5:42 pm
Forum: Investing - Help with Personal Investments
Topic: Cap gains - when?
Replies: 8
Views: 608

Re: Cap gains - when?

Let’s say someone regularly buys S&P 500 in a taxable brokerage account... holds it for 20-30 years and doesn’t sell a share until retirement. Would capital gains taxes only be applied when you sell? Any other fees being taken out every year that take away from compounding? Ways money can be remove...
by dbr
Mon Dec 11, 2017 10:30 am
Forum: Investing - Theory, News & General
Topic: Vanguard Investment Advice
Replies: 24
Views: 2546

Re: Vanguard Investment Advice

Looks like Vanguard PAS is just like other companies that sell AUM, give a cookie cutter portfolio that appears to be too complex for someone to do on their own. I guess they figure if this type of thing helps sales and other firms, Vanguard may as well profit using the same technique. As a person ...
by dbr
Mon Dec 11, 2017 10:10 am
Forum: Investing - Theory, News & General
Topic: TSM vs High Dividend Yield if I never choose to sell?
Replies: 36
Views: 2102

Re: TSM vs High Dividend Yield if I never choose to sell?

I am in my late 20's and have 2,000,000 to invest. I have a relatively safe government job that will supply me with a pension when I am older. With that time horizon and a pension, I would be inclined to put it all in a Warren Buffett 90/10 portfolio so long as you promise to rarely look at your st...
by dbr
Mon Dec 11, 2017 10:02 am
Forum: Investing - Theory, News & General
Topic: What mix of intermediate and short term bonds?
Replies: 45
Views: 2232

Re: What mix of intermediate and short term bonds?

TIPS are also pretty low right now. VIPSX has a 0.2% SEC yield. FWIW, in the FI portion of my portfolio I have 50% intermediate bonds (IG IT, using VFIDX). The other 50% is less inflation sensitive: short term investment grade (VFSUX) and older iBonds keepers. Total average duration = 3.7 years. Wh...
by dbr
Mon Dec 11, 2017 9:51 am
Forum: Investing - Help with Personal Investments
Topic: Tax Consequences of Un-Jointing a Joint Account
Replies: 19
Views: 834

Re: Tax Consequences of Un-Jointing a Joint Account

Are the owners related and who furnished the original consideration? Gill Yes, husband and wife. Husband (me) established the account years ago. We're exploring the idea of keeping our finances separate and this one account is the only issue. It would have to be divided in half with each half havin...
by dbr
Mon Dec 11, 2017 9:38 am
Forum: Personal Consumer Issues
Topic: How easy is it to minimize tax liability yourself without a CPA/accountant?
Replies: 15
Views: 1262

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

The observation that applies here is that what you are able to do is easy and what you are not able to do is hard. I personally find individual taxes "easy" but would hardly just dive in on business taxes. I guess I would consider that "hard." But the real question is not with or without a CPA but r...
by dbr
Mon Dec 11, 2017 9:35 am
Forum: Investing - Theory, News & General
Topic: VTI-Is this truly the total us stock market?
Replies: 6
Views: 968

Re: VTI-Is this truly the total us stock market?

I do not consider any of the "lazy" portfolios to be well regarded as they are cooking school recipe books instead of a serious efforts at a good asset allocation. But whatever you think about that, don't confuse recommendations to tilt to asset classes or follow a factor investing approach with hol...
by dbr
Mon Dec 11, 2017 9:26 am
Forum: Investing - Help with Personal Investments
Topic: Tax Consequences of Un-Jointing a Joint Account
Replies: 19
Views: 834

Re: Tax Consequences of Un-Jointing a Joint Account

Yes, you can split the account without selling things and paying capital gains taxes or creating a gift, as far as I know. Of course there are now other tax consequences if people change from joint to separate filing and so on.
by dbr
Mon Dec 11, 2017 9:20 am
Forum: Investing - Help with Personal Investments
Topic: How to Achieve CAGR of 6% in non-taxable Acct?
Replies: 10
Views: 922

Re: How to Achieve CAGR of 6% in non-taxable Acct?

In general the expected return is function of increasing risk beginning with a savings account at the lowest risk and return and ending with certain subclasses of stocks with the most risk and return. This set of estimates might give you a general idea: https://portfoliosolutions.com/latest-learning...
by dbr
Mon Dec 11, 2017 9:15 am
Forum: Personal Consumer Issues
Topic: USAA 2.5% Cash Back Credit Card
Replies: 251
Views: 43486

Re: USAA 2.5% Cash Back Credit Card

All credit card websites have their quirks and some are more user friendly than others. Also they frequently update the appearance and function as an "enhancement." I have found you just have to learn to work with what is there on the five or six bank websites I have had occasion to use. Actual fail...
by dbr
Mon Dec 11, 2017 9:12 am
Forum: Investing - Help with Personal Investments
Topic: What to do when emergency fund runs out? (IPS)
Replies: 8
Views: 972

Re: What to do when emergency fund runs out? (IPS)

Obviously you need an emergency-emergency fund. What you do might depend a lot on what the emergency is. The answer could range from just selling some taxable long term investments to selling the house and moving to pulling your kids out of college to sending you or your spouse back to work or to wo...
by dbr
Mon Dec 11, 2017 9:01 am
Forum: Investing - Help with Personal Investments
Topic: Dividends ETF
Replies: 7
Views: 524

Re: Dividends ETF

Ha. But I think he meant ETFs with the word "dividend" in the name. But wait, the yield on VDADX is less than the yield on VFIAX and not much more than the yield on VTSAX. (Yeah, I'm not telling anyone what those tickers are, either.) Joke's on you—the DA in VDADX is probably dividend appreciation,...
by dbr
Sun Dec 10, 2017 2:09 pm
Forum: Investing - Theory, News & General
Topic: What mix of intermediate and short term bonds?
Replies: 45
Views: 2232

Re: What mix of intermediate and short term bonds?

In a rising rate environment, even the slowly rising rate structure which is anticipated, short term bonds are attractive IMO. This is especially so now when interest rate spreads between short and intermediate term bonds have narrowed considerably. You get paid very little these days to take on du...
by dbr
Sun Dec 10, 2017 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: Pay Estimated Taxes
Replies: 7
Views: 692

Re: Pay Estimated Taxes

There is no such thing as quarterly tax filing. As livesoft pointed out you can make payments to the IRS at any time. You just want to make sure you don't fall behind relative to your rate of earning. This can be accomplished by withholding from any account that allows it. Withholding when done appl...
by dbr
Sun Dec 10, 2017 1:13 pm
Forum: Investing - Theory, News & General
Topic: What mix of intermediate and short term bonds?
Replies: 45
Views: 2232

Re: What mix of intermediate and short term bonds?

I think you should hold IT and not try to predict interest rates. Why? Is it that we should just assume the term premium will always be there (on average) for us? Also, what about the somewhat flat yield curve? We know rates are very low as compared to the last 70 years. I totally agree that there ...
by dbr
Sun Dec 10, 2017 1:03 pm
Forum: Investing - Theory, News & General
Topic: What mix of intermediate and short term bonds?
Replies: 45
Views: 2232

Re: What mix of intermediate and short term bonds?

I don't know the answer to your question, but I think it is important for people to realize that an intermediate term bond FUND may contain individual bonds of all terms - short, intermediate, and long term. Like total bond market - all those bonds are not intermediate term. It contains bonds of al...
by dbr
Sun Dec 10, 2017 1:01 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio advice: Total market vs Larry Portfolio
Replies: 35
Views: 2254

Re: Portfolio advice: Total market vs Larry Portfolio

There is the question of how much difference it makes that really matters. You say you like the principle for a couple of reasonable reasons, but does uncertainty about what will really happen combined with additional complexity really amount to a good enough reason to go the LP route -- I mean in t...
by dbr
Sun Dec 10, 2017 12:52 pm
Forum: Investing - Theory, News & General
Topic: What mix of intermediate and short term bonds?
Replies: 45
Views: 2232

Re: What mix of intermediate and short term bonds?

I think you should hold IT and not try to predict interest rates.
by dbr
Sun Dec 10, 2017 12:42 pm
Forum: Investing - Help with Personal Investments
Topic: How to Achieve CAGR of 6% in non-taxable Acct?
Replies: 10
Views: 922

Re: How to Achieve CAGR of 6% in non-taxable Acct?

I am not sure that calculator is the tool you want to use. Does it take into account the distribution of annual returns (volatility) as well as the average? I would try a run in FireCalc. Note that asset allocation has a weak effect on how long a portfolio lasts compared to withdrawal rate and luck ...
by dbr
Sun Dec 10, 2017 12:05 pm
Forum: Investing - Help with Personal Investments
Topic: Recommendation Best fund for retirees in taxable
Replies: 20
Views: 700

Re: Recommendation Best fund for retirees in taxable

This money would be in a brokerage account so I am not sure how easy it would be to place cds. Yes, maybe split bond allocation between int. Muni and total bond so tax hit is smaller and more diversification. I’ll probably have to tell them about this change of plan as I educated them about the van...
by dbr
Sun Dec 10, 2017 12:02 pm
Forum: Investing - Theory, News & General
Topic: How should I look at SS and pensions when developing my post-FRA AA?
Replies: 30
Views: 835

Re: How should I look at SS and pensions when developing my post-FRA AA?

I would use a DCF method to estimate a value for the pension, or any other stream of future payments, and count that in the bonds component of my AA. This to avoid all those absurdities that usually pop out when one uses extravagant accounting procedures. Incorporating virtual assets when trying to...
by dbr
Sun Dec 10, 2017 11:54 am
Forum: Investing - Theory, News & General
Topic: How should I look at SS and pensions when developing my post-FRA AA?
Replies: 30
Views: 835

Re: How should I look at SS and pensions when developing my post-FRA AA?

flyingaway wrote:
Sun Dec 10, 2017 11:49 am
I don't have a pension. I do not count social security in my retirement portfolio. I just consider it as one of my safety nets or financial cushions.
Which then affects how you manage our portfolio without social security being turned into a virtual portfolio asset.
by dbr
Sun Dec 10, 2017 11:52 am
Forum: Investing - Theory, News & General
Topic: How should I look at SS and pensions when developing my post-FRA AA?
Replies: 30
Views: 835

Re: How should I look at SS and pensions when developing my post-FRA AA?

[If you elect the annuity your net assets will be lower than if you elect a lump sum, yes. But your net expenses that have to be funded by your net assets will be lower. I wouldn't count it as an asset until you make the election and the payout is received. I don’t have any expenses. Wife provides ...
by dbr
Sun Dec 10, 2017 11:47 am
Forum: Investing - Theory, News & General
Topic: How should I look at SS and pensions when developing my post-FRA AA?
Replies: 30
Views: 835

Re: How should I look at SS and pensions when developing my post-FRA AA?

My pensin plan gives me the choice of collecting 500k at separation, or 3k/month for the rest of my life. Would anyone think that if I chose the instant payout I can include that amont under “cash”, but if I pick the pension I am half a million poorer ? Yes, you are absolutely half a million poorer...
by dbr
Sun Dec 10, 2017 11:38 am
Forum: Investing - Help with Personal Investments
Topic: Recommendation Best fund for retirees in taxable
Replies: 20
Views: 700

Re: Recommendation Best fund for retirees in taxable

Illinois, so no state specific funds I am aware of. I could do something like 30% vanguard total world and 70% vanguard intermediate. Muni fund. I wonder if the munis aren’t as diversified and riskier than a mix of treasuries and corporates? I think I recall the recommendation from Larry Swedroe is...
by dbr
Sun Dec 10, 2017 11:30 am
Forum: Investing - Theory, News & General
Topic: investing in taxable accounts
Replies: 10
Views: 1455

Re: investing in taxable accounts

Taking into account asset allocation and asset location I have total US and total OUS index funds for most of my taxable holdings. When there is unspent RMD money transferred in, it would go into those funds. In the meantime rebalancing is eventually done if required. I would consider this the defau...
by dbr
Sun Dec 10, 2017 11:26 am
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 1923
Views: 1179934

Re: The Three-Fund Portfolio

In the end, for me, simplicity is the most important quality of the Three-Fund Portfolio. I'll rebalance once per year and then in 20-30 years I'll peek. Although, to this point, I haven't found a way to rebalance without peeking. Assuming we can forget advisors who would do the rebalancing, the on...
by dbr
Sun Dec 10, 2017 11:22 am
Forum: Investing - Help with Personal Investments
Topic: Recommendation Best fund for retirees in taxable
Replies: 20
Views: 700

Re: Recommendation Best fund for retirees in taxable

I would like a recommendation for a fund for several risk averse retirees in a taxable account. The main goal is for the money (low 6 figures) to keep up with inflation. They are ok with an allocation to stocks. They have no need for this money for anticipated expenses, only potentially for medical...
by dbr
Sun Dec 10, 2017 11:09 am
Forum: Personal Consumer Issues
Topic: Do people still use AAA?
Replies: 146
Views: 7839

Re: Do people still use AAA?

We use AAA for the hotel discounts, which are significant. It also keeps me from belonging to AARP (similar discounts) which I don't like because of their politics. We've used them for emergency tire blows and battery jumps (DD actually had them replace her battery one time). gasdoc Yes, AAA has be...
by dbr
Sun Dec 10, 2017 11:07 am
Forum: Investing - Help with Personal Investments
Topic: Recommendation Best fund for retirees in taxable
Replies: 20
Views: 700

Re: Recommendation Best fund for retirees in taxable

Vanguard's Tax Managed Balanced fund, VTMFX, is 50% US stocks and 50% tax exempt bonds might fit. The down side of not holding pure stock funds or pure TE bond funds in a taxable account is you may lose tax loss harvesting possibilities and more difficulty rebalancing. I thought about this fund but...
by dbr
Sun Dec 10, 2017 11:05 am
Forum: Investing - Theory, News & General
Topic: Forward looking expected returns and SD:your guess and reason
Replies: 6
Views: 496

Re: Forward looking expected returns and SD:your guess and reason

Over the years I guess I’ve learned to trust the wisdom of the bogleheads.... May be there is a concensus on what’s good here on the board... The wisdom here is that trying to estimate future return distributions is subject to much uncertainty even for a long term average and probably not possible ...
by dbr
Sun Dec 10, 2017 10:59 am
Forum: Investing - Theory, News & General
Topic: How should I look at SS and pensions when developing my post-FRA AA?
Replies: 30
Views: 835

Re: How should I look at SS and pensions when developing my post-FRA AA?

This sentence "It makes sense to me to regard them as guaranteed income streams and subtract them from projected expenses for cash flow purposes but it doesn't feel right just to ignore them when I calculate my AA." leaves out the correct answer that regarding pensions and annuities as income stream...
by dbr
Sun Dec 10, 2017 10:49 am
Forum: Investing - Help with Personal Investments
Topic: Recommendation Best fund for retirees in taxable
Replies: 20
Views: 700

Re: Recommendation Best fund for retirees in taxable

I would like a recommendation for a fund for several risk averse retirees in a taxable account. The main goal is for the money (low 6 figures) to keep up with inflation. They are ok with an allocation to stocks. They have no need for this money for anticipated expenses, only potentially for medical...
by dbr
Sun Dec 10, 2017 10:24 am
Forum: Investing - Help with Personal Investments
Topic: Dividends ETF
Replies: 7
Views: 524

Re: Dividends ETF

Almost all ETFs pay dividends, so if you mean the dividend-paying Total US Stock Market index ETF like VTI or ITOT or the Total International Stock Market Index ETF like VXUS or ACWX, then Yes! It is very wise to have such ETFs in your taxable account if they will not fit into your Roth IRA or your...
by dbr
Sun Dec 10, 2017 10:11 am
Forum: Investing - Theory, News & General
Topic: How should I look at SS and pensions when developing my post-FRA AA?
Replies: 30
Views: 835

Re: How should I look at SS and pensions when developing my post-FRA AA?

Simple straightforward question. How should I look at SS and pensions when developing my post-FRA AA? Should I count them as bonds @ 25x, should I discount them to 20x or 15x, or should I disregard them. It makes sense to me to regard them as guaranteed income streams and subtract them from project...
by dbr
Sun Dec 10, 2017 10:04 am
Forum: Investing - Help with Personal Investments
Topic: Cash heavy and unsure
Replies: 12
Views: 958

Re: CDs and treasuries

Why would anyone buy treasuries over CDs? I am not an accomplished investor, but I have read enough of the fine print to know the difference. Why would one choose treasuries over a CD if investing under $250,000? liquidity, probably. Also, you can buy treasuries that are inflation protected whereas...
by dbr
Sun Dec 10, 2017 10:01 am
Forum: Investing - Help with Personal Investments
Topic: Dividends ETF
Replies: 7
Views: 524

Re: Dividends ETF

https://www.bogleheads.org/wiki/Tax-eff ... _placement

Is there some reason you are attracted to a dividend ETF? If so you should read through the many, many discussions of dividend investing and see what you think.
by dbr
Sun Dec 10, 2017 9:58 am
Forum: Investing - Help with Personal Investments
Topic: Cash heavy and unsure
Replies: 12
Views: 958

Re: Cash heavy and unsure

The question for the board is where does the cash go? 5 year CDs pay as well as decent dividend stocks and the market is overvalued. Treasuries make no sense to me when 5 year CDs and 10 year treasuries are as close as they are in an era if interest rate increases.I actually favor 1 year 1.7 CDs ov...
by dbr
Sun Dec 10, 2017 9:32 am
Forum: Investing - Theory, News & General
Topic: Vanguard Investment Advice
Replies: 24
Views: 2546

Re: Vanguard Investment Advice

The 9-box M* system of stock and bond styles is used by a lot of people. Vanguard publishes a version of that concept on many of its fund data pages. f they want people to know what they have, why not publish the style box rather. That would also include value as well as size and credit quality as w...
by dbr
Sun Dec 10, 2017 9:18 am
Forum: Personal Consumer Issues
Topic: Paying contractors for incomplete work
Replies: 22
Views: 1406

Re: Paying contractors for incomplete work

If nothing else you now know who not to call. It isn't a bad thing to know that before you look for someone for something bigger. As for DIY plumbing there are lots of things the homeowner can do until he can't. Things of this sort have a way of not cooperating they way it looks in the YouTube video...
by dbr
Sun Dec 10, 2017 9:12 am
Forum: Personal Consumer Issues
Topic: Hit a deer and may be car shopping
Replies: 8
Views: 707

Re: Hit a deer and may be car shopping

It can happen that the repair cost exceeds the current value of the car, in which case the insurance company will "total" the car meaning they will write you a check for the car and take the vehicle as scrap. In that case you will have $11,000 to apply to whatever new or used vehicle you choose to b...
by dbr
Sun Dec 10, 2017 9:05 am
Forum: Investing - Theory, News & General
Topic: TSM vs High Dividend Yield if I never choose to sell?
Replies: 36
Views: 2102

Re: TSM vs High Dividend Yield if I never choose to sell?

I am in my late 20's and have 2,000,000 to invest. I have a relatively safe government job that will supply me with a pension when I am older. My logic is to reinvest all dividends/CG for the next 20 or so years until I choose to retire. My thought process behind using the High Yield fund as oppose...
by dbr
Sun Dec 10, 2017 8:57 am
Forum: Investing - Help with Personal Investments
Topic: Windfall and Personal Retirement
Replies: 4
Views: 783

Re: Windfall and Personal Retirement

By stocks do you mean individual stocks or stock mutual funds? A collection of individual stocks will not be very diversified. Funds an advisor may put you in will almost certainly have higher costs than you should pay. There may also be issues of tax efficiency. In any case you want to be sure now ...
by dbr
Sun Dec 10, 2017 8:51 am
Forum: Investing - Help with Personal Investments
Topic: Need to invest adult siblings trust money
Replies: 23
Views: 1459

Re: Need to invest adult siblings trust money

You would have to consult your attorney but I think you should look closely at the SPIA as that guarantees a monthly payout as long as they are alive and removes you from any obligation to manage the investments or the distributions. It would seem a strong argument that this would be a defensible me...
by dbr
Sun Dec 10, 2017 8:40 am
Forum: Investing - Theory, News & General
Topic: Which is better: Wellesley or 5-yr 2.5% CD?
Replies: 51
Views: 3748

Re: Which is better: Wellesley or 5-yr 2.5% CD?

Keep in mind that inflation probably will not erode the purchasing power if you choose good, competitive bank CDs. The argument that "cash" is a foolish investment because its purchasing power will be cut in half in 72/X years (where X is the inflation rate) is true if "cash" means physical, paper ...
by dbr
Sat Dec 09, 2017 12:06 pm
Forum: Personal Finance (Not Investing)
Topic: Does this happen to you? Educating friends about personal finance
Replies: 104
Views: 5512

Re: Does this happen to you? Educating friends about personal finance

Whenever one of the young guys at work had their first child, I would politely suggest to them that they start saving for college immediately. They were always receptive to my advice. Then there were a couple of guys in their 40s who each had multiple teenagers. They asked me when I started saving ...
by dbr
Sat Dec 09, 2017 11:07 am
Forum: Investing - Theory, News & General
Topic: Trying to nail down asset allocation for second bucket
Replies: 43
Views: 1399

Re: Trying to nail down asset allocation for second bucket

I don't know how your asset allocation should change over time in the period from retirement to the onset of significant income. I have an intuition that it shouldn't change by very much. The issue would be strongly affected by what fraction of your assets you need to consume to get through the ini...