Search found 26877 matches

by dbr
Mon Jun 18, 2018 10:22 am
Forum: Investing - Theory, News & General
Topic: Bill Bernstein's 8:4:5:3 ratio
Replies: 5
Views: 436

Re: Bill Bernstein's 8:4:5:3 ratio

Also, it is known that all such numbers should be prime numbers and the presence of 8 and 4 pretty much invalidates the suggestion. Wikipedia's definition: "Prime number (or a prime) is a natural number greater than 1 that cannot be formed by multiplying two smaller natural numbers." dbr: Why shoul...
by dbr
Mon Jun 18, 2018 10:10 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Balanced Index Fund Admiral Shares (VBIAX)
Replies: 17
Views: 1148

Re: Vanguard Balanced Index Fund Admiral Shares (VBIAX)

Is Vanguard Balanced Index Fund Admiral Shares (VBIAX) a horrible choice for a taxable account? Hi TheTimeLord - Ideally a balance fund is not preferred for a taxable account because any distributions from he bonds portfolio of the fund would be taxed at an investors ordinary income tax rate. Howev...
by dbr
Mon Jun 18, 2018 10:05 am
Forum: Investing - Help with Personal Investments
Topic: Kid's Online Access for Kid's Brokerage Accounts
Replies: 6
Views: 535

Re: Kid's Online Access for Kid's Brokerage Accounts

Brokers supply monthly reports. Paying a little, if any, to get a copy in snail mail might be an option if one wants the child to be aware of what is there. It could be a good education. I do not subscribe to the do not peek idea. Looking frequently can be combined with education in not messing with...
by dbr
Mon Jun 18, 2018 10:03 am
Forum: Investing - Help with Personal Investments
Topic: Planning to buy a home in California
Replies: 6
Views: 214

Re: Planning to buy a home in California

The best way to hedge against increases in pricing is to buy the house now. You don't need to manage the property, that's what property managers are for. That seems logical to me. The only result of combining real estate market risk and investment risk is for the total to compound to even more risk...
by dbr
Mon Jun 18, 2018 9:56 am
Forum: Investing - Theory, News & General
Topic: Is individual Bonds better than Bond Fund?
Replies: 11
Views: 289

Re: Is individual Bonds better than Bond Fund?

IIRC Suze Orman owns only bonds, no stocks? (but says most people should have stocks) In that case and with that level of assets I think it's more justified for at least some money. I'm not really familiar with the rationales and whatever she talks about, and my impression is that many people like ...
by dbr
Mon Jun 18, 2018 9:42 am
Forum: Investing - Theory, News & General
Topic: Is individual Bonds better than Bond Fund?
Replies: 11
Views: 289

Re: Is individual Bonds better than Bond Fund?

Suze has a lot of good advice; this is one thing I think she spreads too much FUD about. There are some reasons to hold a bond ladder (e.g., liability matching portfolio); however, more generally, a diversified bond fund is excellent. Yes, FUD is exactly what it is. This is not a service to anyone.
by dbr
Mon Jun 18, 2018 9:40 am
Forum: Investing - Theory, News & General
Topic: Is individual Bonds better than Bond Fund?
Replies: 11
Views: 289

Re: Is individual Bonds better than Bond Fund?

With individual bonds you get more control on effectively the cash flows, choosing when to buy and sell. You get to determine the risk exposures, maturity dates, and what to do. And then what do you do with that control and how much meaningful difference does it make? Also with control you acquire ...
by dbr
Mon Jun 18, 2018 9:31 am
Forum: Investing - Theory, News & General
Topic: Bill Bernstein's 8:4:5:3 ratio
Replies: 5
Views: 436

Re: Bill Bernstein's 8:4:5:3 ratio

Sure that kind of thing makes all sorts of sense if it comes with an explanation for how those numbers were determined that is convincing for why the numbers shouldn't be something else. Did you read such an explanation? There are reams and reams of discussion about how allocation might be distribut...
by dbr
Mon Jun 18, 2018 9:25 am
Forum: Investing - Theory, News & General
Topic: Is individual Bonds better than Bond Fund?
Replies: 11
Views: 289

Re: Is individual Bonds better than Bond Fund?

For the purpose of maintaining a portfolio for retirement withdrawals there is no advantage to holding individual bonds rather than a fund except in people's heads.

One should read here: https://www.bogleheads.org/wiki/Individ ... _bond_fund
by dbr
Mon Jun 18, 2018 9:19 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Brokerage Acct. WHY ?
Replies: 6
Views: 771

Re: Vanguard Brokerage Acct. WHY ?

In any case there is lots of discussion you can read: https://www.google.com/search?sitesearc ... e+accounts
by dbr
Mon Jun 18, 2018 9:17 am
Forum: Investing - Help with Personal Investments
Topic: MD&P just purchased X / sold Y [md&pharmacist]
Replies: 180
Views: 10346

Re: MD&P just purchased X / sold Y [md&pharmacist]

Generally August and September (and February) tend to be the worst months for the markets, so hopefully an opportunity for a good trade will present itself between now and then. I don't carry any weight around here but I see no harm in keeping the thread open for awhile. Buried in all of the fluff ...
by dbr
Mon Jun 18, 2018 9:07 am
Forum: Investing - Theory, News & General
Topic: A different theoretical view of SWR
Replies: 54
Views: 2882

Re: A different theoretical view of SWR

Ron, your assumption is arbitrary and unfounded and your result is therefore equally arbitrary and unfounded. That does not mean the future will not behave that way; it just means there is no sound basis for belief it will more than there is for lots of other assumptions. If one wants to present thi...
by dbr
Mon Jun 18, 2018 8:58 am
Forum: Investing - Help with Personal Investments
Topic: STAR vs. 3-Fund Portfolio
Replies: 9
Views: 827

Re: STAR vs. 3-Fund Portfolio

Please understand that I am aware each BH comes with a differing experience level when they read/respond. I am just beginning my journey and while I am still learning the ins-and-out, please explain how by using data right off the Vanguard website it is not the correct way to judge performance. It ...
by dbr
Sun Jun 17, 2018 8:22 pm
Forum: Investing - Help with Personal Investments
Topic: New to VG. Tax hit on trsfr of proprietary fund?
Replies: 4
Views: 271

Re: New to VG. Tax hit on trsfr of proprietary fund?

Then I saw somewhere that when you liquidate a fund during a transfer, it drops to earth into your taxable income, even if you don't see a dime of it. This probably happened about a month ago. Is there any way I can convince the IRS not to tax it? It seems rather unfair under the circumstances. Can...
by dbr
Sun Jun 17, 2018 8:16 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Balanced Index Fund Admiral Shares (VBIAX)
Replies: 17
Views: 1148

Re: Vanguard Balanced Index Fund Admiral Shares (VBIAX)

To start you could make some estimates of your tax cost to hold that fund instead of some other way of holding your investments and decide if it is horrible. None of us know what your taxes look like.
by dbr
Sun Jun 17, 2018 8:13 pm
Forum: Investing - Theory, News & General
Topic: Which boglehead rule do you break--and are ok with
Replies: 137
Views: 8566

Re: Which boglehead rule do you break--and are ok with

I would say the admonition to use index funds needs to be qualified. The point is there are distinctions. The real point is to operate at low cost, to be diversified, and to not have manager risk. There are certainly funds that are not index funds that do that. For example Vanguard Treasury bond fun...
by dbr
Sun Jun 17, 2018 8:07 pm
Forum: Investing - Help with Personal Investments
Topic: Please help with RMDs and asset allocation
Replies: 8
Views: 818

Re: Please help with RMDs and asset allocation

Thank you for your thoughtful responses. I will follow the given suggestions. When I asked about taking more than $18,000 per year I was not including the RMD. It's good to know that I do have some leeway. I just wondered if my asset allocation looks ok in general - especially the Tax Deferred acco...
by dbr
Sun Jun 17, 2018 4:36 pm
Forum: Investing - Help with Personal Investments
Topic: Take Advantage of Stable Value Fund?
Replies: 22
Views: 1173

Re: Take Advantage of Stable Value Fund?

For a person long term 90% equities long term bonds, especially Treasuries, make perfect sense. Even if there is not some convincing proof that the choice is superior, it should be fine. A possibility is that if one wanted to cut down on the stock allocation a stable value fund could the place for t...
by dbr
Sun Jun 17, 2018 3:32 pm
Forum: Investing - Help with Personal Investments
Topic: STAR vs. 3-Fund Portfolio
Replies: 9
Views: 827

Re: STAR vs. 3-Fund Portfolio

You don't have a reliable basis for asserting anything has "outperformed" something else. FWIW Portfolio Visualizer comparing your two options since 1993 shows Star to have a slightly higher CAGR, a slightly higher standard deviation of annual returns, and identical Sharpe and Sortino ratios. In sho...
by dbr
Sun Jun 17, 2018 3:20 pm
Forum: Investing - Help with Personal Investments
Topic: Please help with RMDs and asset allocation
Replies: 8
Views: 818

Re: Please help with RMDs and asset allocation

A general idea about withdrawing from investments is to use the withdrawal to point the asset allocation back to target. That does require looking at where things are and calculating how much to withdraw from what.
by dbr
Sun Jun 17, 2018 2:56 pm
Forum: Investing - Theory, News & General
Topic: Why is risk adjusted return important?
Replies: 35
Views: 2416

Re: Why is risk adjusted return important?

I'm answering someone's question. Other people will have to tell me what you do with it. If risk adjusted return could provide a one-size-fits-all answer to "pay debt vs. invest," that would be significant. I guess my idea is that risk adjusted return (M-M model) would be helpful to understand that...
by dbr
Sun Jun 17, 2018 9:56 am
Forum: Investing - Help with Personal Investments
Topic: calculator to get to desire $$$
Replies: 15
Views: 1013

Re: calculator to get to desire $$$

It sounds like it is almost immaterial what happens to your portfolio as far as a successful retirement, i.e. being able to pay bills and have some fun. One question I have is you said you have a number in mind that you would like to be at in 6 years. What is that number based on what you have now?...
by dbr
Sun Jun 17, 2018 9:55 am
Forum: Investing - Help with Personal Investments
Topic: Take Advantage of Stable Value Fund?
Replies: 22
Views: 1173

Re: Take Advantage of Stable Value Fund?

Generally stable value funds are not quoted with expenses, so this is a completely different animal than I'm used to. Normally the stated yield is net of everything so you just don't care about or even want to know the expense ratio. You might have a fee for your plan separate from your investment ...
by dbr
Sun Jun 17, 2018 9:52 am
Forum: Investing - Help with Personal Investments
Topic: calculator to get to desire $$$
Replies: 15
Views: 1013

Re: calculator to get to desire $$$

Or just do the math in a spreadsheet or a scientific calculator. Of course the formula depends on what you're assuming and what you want to know. It sounds like you know "Dollars Now" and "Future Target". If you assume a certain growth "Rate" and want to know how many "Years" it will take to reach ...
by dbr
Sun Jun 17, 2018 9:50 am
Forum: Investing - Help with Personal Investments
Topic: calculator to get to desire $$$
Replies: 15
Views: 1013

Re: calculator to get to desire $$$

I entered the information into Firecal.com. The result show zero chance of running out of money. I did not including SS or pension. The question for me is I have a pension that covers my expenses. I just figure to let the portfolio grow for the next 6 years and then start using some of the interest...
by dbr
Sun Jun 17, 2018 9:43 am
Forum: Investing - Theory, News & General
Topic: Why is risk adjusted return important?
Replies: 35
Views: 2416

Re: Why is risk adjusted return important?

Possibly this method is corresponds best to the idea of "What return would I have if the risk were the same as something else I am comparing it to?": https://en.wikipedia.org/wiki/Modigliani_risk-adjusted_performance Based on that article, the Modigliani risk adjusted return of VTSAX (or similar to...
by dbr
Sun Jun 17, 2018 8:59 am
Forum: Investing - Theory, News & General
Topic: How much tilt is enough to make a difference?
Replies: 27
Views: 1740

Re: How much tilt is enough to make a difference?

Alexa9 wrote:
Sun Jun 17, 2018 8:57 am
I like a 50% tilt
25% each: VTI, VXUS, VBR, VSS
It may do better or worse, but at least I won't have near half my portfolio in Mega Caps.
Isn't your analysis 9x11? How close to that are you?
by dbr
Sun Jun 17, 2018 8:56 am
Forum: Investing - Theory, News & General
Topic: Why is risk adjusted return important?
Replies: 35
Views: 2416

Re: Why is risk adjusted return important?

Really basic question here. How do you determine the risk adjustedreturn of a fund? P.S. inestopedia gives the following. https://www.investopedia.com/terms/r/riskadjustedreturn.asp Possibly this method is corresponds best to the idea of "What return would I have if the risk were the same as someth...
by dbr
Sun Jun 17, 2018 8:50 am
Forum: Investing - Help with Personal Investments
Topic: Wanting to learn: seeking approval or criticism on my portfolio
Replies: 12
Views: 1113

Re: Wanting to learn: seeking approval or criticism on my portfolio

A pension is not a bond. The effect of having income from a pension can be considered in your need, ability, and willingness to take risk. The possibility of cashing out can be taken into account as a possible scenario for increased assets and less income at the time. Those assets are not necessaril...
by dbr
Sun Jun 17, 2018 8:42 am
Forum: Investing - Help with Personal Investments
Topic: Take Advantage of Stable Value Fund?
Replies: 22
Views: 1173

Re: Take Advantage of Stable Value Fund?

Since you have a 30 year time horizon, i would not consider this fund choice. This fund will most likely not keep up with the inflation rate over the next 30 years. Consider yourself lucky to have such a good employer plan. Do you know that to be true? SV fund yields tend to be similar to intermedi...
by dbr
Sun Jun 17, 2018 8:40 am
Forum: Personal Consumer Issues
Topic: iPad Pro 12.9": Replacement for Laptop?
Replies: 26
Views: 1917

Re: iPad Pro 12.9": Replacement for Laptop?

I would say no. In my world a desktop, a larger iPad, an iPad mini, a Kindle, and an iPhone all serve their own purposes and are not interchangeable. Which one's go where at any time is always a choice to be addressed. I suspect the advocates of a real laptop probably have a point, but I don't have ...
by dbr
Sun Jun 17, 2018 8:32 am
Forum: Investing - Help with Personal Investments
Topic: Take Advantage of Stable Value Fund?
Replies: 22
Views: 1173

Re: Take Advantage of Stable Value Fund?

If your IPS is as specific as to need to be changed so you can invest in a stable value fund rather than Treasuries, then I would say your IPS is over-specified. Yes, stable value funds are reasonable alternatives in 401k plans and one reason some 401k plans might be better than all available altern...
by dbr
Sun Jun 17, 2018 8:29 am
Forum: Investing - Help with Personal Investments
Topic: Adding U.S. Growth Fund Investor Shares (VWUSX) to portfolio
Replies: 11
Views: 794

Re: Adding U.S. Growth Fund Investor Shares (VWUSX) to portfolio

Hello everyone, My current portfolio is: 40% stock and 60% bond/CD 40% stock (taxable + non-taxable) = 80% Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) and 20% Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) I am planning to increase the proportion of large-cap...
by dbr
Sun Jun 17, 2018 8:17 am
Forum: Personal Consumer Issues
Topic: Anyone live in (or familiar with) John Knox Village in Kansas City?
Replies: 2
Views: 537

Re: Anyone live in (or familiar with) John Knox Village in Kansas City?

I'm thinking about looking at John Knox Village senior independent living community in Kansas City. Wondering what it's like to live there and what kind of $$ we're talking about. Would appreciate any input. I know nothing about them, but I do know that if you want to know what it will cost you to ...
by dbr
Sun Jun 17, 2018 8:06 am
Forum: Investing - Help with Personal Investments
Topic: CD ladders vs bond funds
Replies: 5
Views: 722

Re: CD ladders vs bond funds

Why are you concerned about the exact risk in fixed income? Are you in a position where you are depending on exactly what happens to a very large amount of money with significant consequences for small differences in exactly what return materializes in the near term? Or, is your position that you ar...
by dbr
Sun Jun 17, 2018 8:00 am
Forum: Personal Consumer Issues
Topic: A vehicle that "sits up" but can't afford CRV
Replies: 48
Views: 4035

Re: A vehicle that "sits up" but can't afford CRV

99% of people are confused with seating position, you want to be as low as possible looking as far out and up as possible. Look for cars with great visibility, which has nothing to do with car height or sitting up as you put it. Lots of compact SUVs I've sat in have terrible A-pillar blind spots. H...
by dbr
Sun Jun 17, 2018 7:52 am
Forum: Investing - Help with Personal Investments
Topic: High Dividend Stocks as bond substitute?
Replies: 36
Views: 2973

Re: High Dividend Stocks as bond substitute?

If you want to hold stocks and not bonds, then that is up to you, but please don't try to think some stocks are bonds. It is no more complicated than that.
by dbr
Sat Jun 16, 2018 2:12 pm
Forum: Personal Finance (Not Investing)
Topic: Tracking spending before retirement useful for estimating retirement expenses?
Replies: 38
Views: 1879

Re: Tracking spending before retirement useful for estimating retirement expenses?

It was absolutely useful. It was not sufficient because some things changed. It is certainly most helpful information as long as you are paying attention to what you are looking at. It will tell you what some items are going to be and it won't tell you what some other items are going to be.
by dbr
Sat Jun 16, 2018 1:23 pm
Forum: Investing - Theory, News & General
Topic: Flaw in Logic? CD ladder instead of bond funds
Replies: 61
Views: 3945

Re: Flaw in Logic? CD ladder instead of bond funds

I have bonds funds in my retirement accounts. However, in taxable I have a 5 year CD ladder. I've set it up to provide cash between retirement and RMDs at 70. Each year some CDs will mature and I will use that to replenish my cash holdings. If I have left over cash, which I expect, I'll either roll...
by dbr
Sat Jun 16, 2018 1:11 pm
Forum: Investing - Theory, News & General
Topic: A different theoretical view of SWR
Replies: 54
Views: 2882

Re: A different theoretical view of SWR

From a theoretical perspective I've come to believe that over the long term reasonable investments in stocks and bonds ultimately serve to accomplish one major feat. They help a portfolio combat inflation. Given a 30-year retirement period this yields a SWR of 3.33%. SWRs can easily be calculated f...
by dbr
Sat Jun 16, 2018 12:26 pm
Forum: Personal Consumer Issues
Topic: A vehicle that "sits up" but can't afford CRV
Replies: 48
Views: 4035

Re: A vehicle that "sits up" but can't afford CRV

It would help to know what she can afford since that is the actual problem.
by dbr
Sat Jun 16, 2018 10:32 am
Forum: Investing - Theory, News & General
Topic: Which boglehead rule do you break--and are ok with
Replies: 137
Views: 8566

Re: Which boglehead rule do you break--and are ok with

Very interesting thread to follow so figured why not chime in: 1. At age 24, hold way more cash than recommended (lot of big purchases upcoming - wedding, down payment, etc) 2. Hold 10% bonds in Roth IRA due to Target Date in 401K and size/growth with contributions to each respective account 3. Wil...
by dbr
Sat Jun 16, 2018 10:31 am
Forum: Investing - Help with Personal Investments
Topic: VCAIX - shorter term alternatives?
Replies: 4
Views: 378

Re: VCAIX - shorter term alternatives?

Do you know the reasoning for that advice? Does the "advice" apply to you? A good alternative to VCAIX might be VCAIX. There is a CA tax exempt MM fund at Vanguard.
by dbr
Sat Jun 16, 2018 10:27 am
Forum: Investing - Help with Personal Investments
Topic: Using Wellesley Fund as a bond alternative
Replies: 18
Views: 2127

Re: Using Wellesley Fund as a bond alternative

The Wellesley fund is 65% bonds. Therefore, you can use it for your bond holdings, as long as the amount you want to hold in bonds is 65% of the fund balance. However, I don't like the fund in a taxable account. The stock turnover is fairly high, leading to large capital gains. And both the stocks ...
by dbr
Sat Jun 16, 2018 10:11 am
Forum: Investing - Theory, News & General
Topic: How much tilt is enough to make a difference?
Replies: 27
Views: 1740

Re: How much tilt is enough to make a difference?

Considering that the dependence on factor loadings is continuous the issue depends on the definition of difference. I suppose one criterion for that is when all the outcomes as a function of some factor loading exceed all the outcomes should one have zero loading. Since that never happens the answer...
by dbr
Sat Jun 16, 2018 10:06 am
Forum: Investing - Help with Personal Investments
Topic: Should fixed income allocation necessarily change over the years?
Replies: 11
Views: 654

Re: Should fixed income allocation necessarily change over the years?

When you say things like "necessity" you are assuming far more certainty about how things might happen than even remotely exists. Retirement withdrawal security is not very dependent on asset allocation. People do wonder and investigate whether or not it is helpful to mess around with asset allocati...
by dbr
Sat Jun 16, 2018 9:48 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Managed Payout Fund
Replies: 29
Views: 2349

Re: Vanguard Managed Payout Fund

The "auto-pilot" features of this fund are nice. It's one less thing I have to worry about or discuss helping older family manage their money. Most brokers or mutual fund companies will arrange to make periodic fixed withdrawals from a holding. I don't think you have to buy a quirky fund to do that...
by dbr
Sat Jun 16, 2018 9:42 am
Forum: Investing - Theory, News & General
Topic: Which boglehead rule do you break--and are ok with
Replies: 137
Views: 8566

Re: Which boglehead rule do you break--and are ok with

Skipped a couple of principles: As a consumer: 1. Bought two new cars in the last 6 years and one was expensive. However, my behavior is still boglehead as I still own them and plan on keeping them. BTW I lend out the Nissan Leaf on http://turo.com/ and so I make a little money on the side. 2. Have...
by dbr
Fri Jun 15, 2018 4:51 pm
Forum: Personal Consumer Issues
Topic: I am STUNNED over how much help my friends recieved with house purchase!
Replies: 47
Views: 3603

Re: I am STUNNED over how much help my friends recieved with house purchase!

The one lesson in my experience, which might be called shocking, was how much money some people have. That was a new experience for us. We are more used to that now.
by dbr
Fri Jun 15, 2018 4:48 pm
Forum: Personal Finance (Not Investing)
Topic: How to find a good CPA?
Replies: 8
Views: 554

Re: How to find a good CPA?

Most likely you just need to supply missing data, quite possibly the cost basis.

Should it happen you want professional help you probably want to find an Enrolled Agent (EA) as this kind of accountant can actually represent you to the IRS. But that is in the last resort. Just write to them first.