Search found 24813 matches

by dbr
Mon Jan 22, 2018 10:37 am
Forum: Investing - Help with Personal Investments
Topic: Advice on constructing a hands-off portfolio with intermediate-term uncertainty
Replies: 6
Views: 415

Re: Advice on constructing a hands-off portfolio with intermediate-term uncertainty

If you plan to make a large purchase with a time certain time-frame, then you need to tee it up with a conservative investment, such as a CD. On the other hand, if you are OK with not making the large purchase, but only to purchase it when the time is right even when it could have taken much longer...
by dbr
Mon Jan 22, 2018 10:28 am
Forum: Investing - Help with Personal Investments
Topic: Ready to give up on bond fund, Lost 2.25% past 6 months
Replies: 37
Views: 3820

Re: Ready to give up on bond fund, Lost 2.25% past 6 months

Few questions for the experts here, as I've been thinking of purchasing SWAGX for the bond/fixed income portion of my Roth IRA. -If I'm reading things correctly, does it appear that the OP mistook price of the bond fund for total return of the bond fund? Probably he is looking at the price and not ...
by dbr
Mon Jan 22, 2018 10:17 am
Forum: Investing - Help with Personal Investments
Topic: Ready to give up on bond fund, Lost 2.25% past 6 months
Replies: 37
Views: 3820

Re: Ready to give up on bond fund, Lost 2.25% past 6 months

I haven't seen a good reason to hold bond funds other than maybe tax exempt ones in taxable accounts. If you have access to CDs and/or good stable value funds, go with that. With bond funds, you may have to wait almost twice the duration of the funds just to get the original principal plus the orig...
by dbr
Mon Jan 22, 2018 10:11 am
Forum: Investing - Theory, News & General
Topic: Puzzled by Berkin & Swedroe contradiction re term premium
Replies: 2
Views: 186

Re: Puzzled by Berkin & Swedroe contradiction re term premium

There is also a matter of risk. It used to be and I don't know if you see it anymore that Larry suggested duration should be extended when you can get 20bps in yield for every extra year in duration. In your case extending maturity (proxy for duration, I know) by 15 years gets you 70bps or about 5bp...
by dbr
Mon Jan 22, 2018 10:05 am
Forum: Investing - Help with Personal Investments
Topic: current asset vs paycheck asset allocation
Replies: 3
Views: 252

Re: current asset vs paycheck asset allocation

If your 401k automatically rebalances (mine does) it doesn't matter too much, and mirroring is probably fine. If it doesn't for some reason, you can use new contributions to rebalance each pay period, or periodically, by switching back and forth between funds. Yes, exactly so. The object is to main...
by dbr
Mon Jan 22, 2018 9:51 am
Forum: Investing - Help with Personal Investments
Topic: Ready to give up on bond fund, Lost 2.25% past 6 months
Replies: 37
Views: 3820

Re: Ready to give up on bond fund, Lost 2.25% past 6 months

Novice here. I have small part of my retirement portfolio in the bond fund of SWAGX, an intermediate bond fund from Schwab. It’s been losing money ever since I bought it 6 months ago. I want to just give up and invest in a 2% cd at synchrony instead. I thought bonds were supposed to be the stablizi...
by dbr
Sun Jan 21, 2018 6:17 pm
Forum: Investing - Theory, News & General
Topic: When Vanguard papers say "diversification benefits," what precisely are they referring to?
Replies: 4
Views: 456

Re: When Vanguard papers say "diversification benefits," what precisely are they referring to?

As far as I know "diversification benefit" means that the risk of the portfolio is reduced because two uncorrelated assets having the same expected return and the same expected risk combine to produce the same expected return and less risk. If the correlation were perfectly negative, there would be ...
by dbr
Sun Jan 21, 2018 1:56 pm
Forum: Investing - Help with Personal Investments
Topic: A 4-5% rebalance to bonds barely budges risk/return
Replies: 38
Views: 2619

Re: A 4-5% rebalance to bonds barely budges risk/return

past performance has no bearing on future results, i dont know if it matters what the difference was in the past This seems to overstate it a bit. It's imperfect but it's all we've got. SOMETHING has to drive our asset allocation strategies and if not historical returns, then what? Phases of the mo...
by dbr
Sun Jan 21, 2018 1:38 pm
Forum: Investing - Help with Personal Investments
Topic: A 4-5% rebalance to bonds barely budges risk/return
Replies: 38
Views: 2619

Re: A 4-5% rebalance to bonds barely budges risk/return

There is also the concept of rebalancing out of stocks too high but not rebalancing in to stocks too low. The general trend of that strategy is to bias away from risk and also reduce return.
by dbr
Sun Jan 21, 2018 1:29 pm
Forum: Investing - Theory, News & General
Topic: [Bogleheads' Guide to Investing - Is this calculation correct?]
Replies: 6
Views: 722

Re: [Bogleheads' Guide to Investing - Is this calculation correct?]

The table looks wrong to me, too. http://i63.tinypic.com/kewva9.png And the numbers given for the newsletter look wrong if the quote in this post is right. https://www.bogleheads.org/forum/viewtopic.php?t=13424 Ron Thanks for posting the chart. Ok, that IS some goofy math. Somebody didn't proof rea...
by dbr
Sun Jan 21, 2018 1:28 pm
Forum: Investing - Help with Personal Investments
Topic: A 4-5% rebalance to bonds barely budges risk/return
Replies: 38
Views: 2619

Re: A 4-5% rebalance to bonds barely budges risk/return

Is there anything wrong with not rebalancing at all? Losing 30 versus 40 percent of piortfolio would be just as painful but I would keep buying like I did in 2008 (although now I have 10x more). If you never reblance then eventually over time the highest returning and riskiest assets will dominate ...
by dbr
Sun Jan 21, 2018 1:23 pm
Forum: Investing - Help with Personal Investments
Topic: AA questions mix index funds w/high yield
Replies: 7
Views: 360

Re: AA questions mix index funds w/high yield

Just a quick comment by way of example is that AMZA has a current yield of 24.25% and a three year annualized return of -14.4%. I don't know what is going on with the other investments, but the fundamental properties of investments are return and the variability of return, and I would focus on those...
by dbr
Sun Jan 21, 2018 12:50 pm
Forum: Investing - Help with Personal Investments
Topic: AA questions mix index funds w/high yield
Replies: 7
Views: 360

Re: AA questions mix index funds w/high yield

Almost no one has any idea what those tickers are.
by dbr
Sun Jan 21, 2018 12:48 pm
Forum: Investing - Help with Personal Investments
Topic: A 4-5% rebalance to bonds barely budges risk/return
Replies: 38
Views: 2619

Re: A 4-5% rebalance to bonds barely budges risk/return

1. Rebalancing is for the purpose of keeping in the ballpark of where one wants to be. It is true that 5% is perhaps barely noticeable threshold. 2. There are probably only three asset allocations worth considering most of the time for most people 75/25, 50/50, 25/75. If someone wants to adopt 100/0...
by dbr
Sun Jan 21, 2018 12:43 pm
Forum: Investing - Theory, News & General
Topic: AA is much harder than I thought...
Replies: 45
Views: 4766

Re: AA is much harder than I thought...

Whether or not you invest 100% in stocks or add some bonds depends on your need to get the return. You pretty much have to run a model estimating the outcomes to compare the two. You also have to assess your ability to cope if you don't get the return you really want. Young age and ability to earn, ...
by dbr
Sat Jan 20, 2018 7:29 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation and rebalancing
Replies: 7
Views: 481

Re: Asset allocation and rebalancing

what I don't understand is that there is advice everywhere to buy and hold, not sell when the market goes lower... however when the market goes lower different asset classes will go down at different rates. Say Bonds drop 10%, Stocks drop 20%.. now do you sell Bonds at a 10% loss and direct the mon...
by dbr
Sat Jan 20, 2018 5:15 pm
Forum: Personal Finance (Not Investing)
Topic: Met with a CFP, not too impressed.
Replies: 51
Views: 8562

Re: Met with a CFP, not too impressed.

We went to a Garrett Financial Network planner. I think we paid $2,300 but I could be wrong. We went back for a second meeting to go over the plan. The next weekend I sat down with the plan and a calculator. Our Social Security payments were off by $10k, our pension amounts were wrong, she had mixe...
by dbr
Sat Jan 20, 2018 5:13 pm
Forum: Investing - Help with Personal Investments
Topic: Income in retirement questions
Replies: 13
Views: 1615

Re: Income in retirement questions

Thanks for the info. What about High Yield Corporate Bonds VWEHX? It has a nice consistent yield. I thought if it would yield 4.5% consistently that would reduce the amount of stocks needed to sell for income. It is a mistake to confuse the dividends and interest paid out by various investments wit...
by dbr
Sat Jan 20, 2018 4:35 pm
Forum: Investing - Help with Personal Investments
Topic: Lifestrategy Growth and Total Stock market -Roth
Replies: 10
Views: 741

Re: Lifestrategy Growth and Total Stock market -Roth

I think he needs to take control of his investments and put some effort into settling on an asset allocation. If he already has, he should share it with you. One should not invest based on what has performed well recently. Invest according to one’s IPS. I second this. Wow. Rudest and most unhelpful...
by dbr
Sat Jan 20, 2018 1:34 pm
Forum: Investing - Help with Personal Investments
Topic: When do you sell shares?
Replies: 1
Views: 205

Re: When do you sell shares?

The general advice is to not hold any shares in your employer stock and that you should sell any ESOP or RSU shares as soon as you can.
by dbr
Sat Jan 20, 2018 1:33 pm
Forum: Investing - Help with Personal Investments
Topic: Income in retirement questions
Replies: 13
Views: 1615

Re: Income in retirement questions

I am nearing retirement and would like some advice. I am 61, my wife 60. No debts. Investing through Vanguard, how would be the best way to withdraw money from my account in retirement. Taking the dividends from my portfolio and my Social Security will leave me around $24,000 short per year. Any su...
by dbr
Sat Jan 20, 2018 12:33 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation and rebalancing
Replies: 7
Views: 481

Re: Asset allocation and rebalancing

Do you guys balance your portfolio based on the original cost basis and not on the current market? I am assuming it should be on the cost basis because you don't want to buy/sell assets based on market swings? Or do you use some other strategy such as waiting for your allocation to deviate past a c...
by dbr
Sat Jan 20, 2018 11:37 am
Forum: Investing - Help with Personal Investments
Topic: Lost money through Bitconnect scam - learned my lesson
Replies: 94
Views: 6891

Re: Lost money through Bitconnect scam - learned my lesson

i'm sorry you didn't read my post from December 17, 2017 before putting money into bitconnect: https://www.bogleheads.org/forum/viewtopic.php?t=234790 If you had read my post, would you have stayed away or not? The answer to that tells you if you will overlook things that are too good to be true fo...
by dbr
Sat Jan 20, 2018 11:27 am
Forum: Investing - Theory, News & General
Topic: What "efficient market" does and doesn't mean
Replies: 20
Views: 940

Re: What "efficient market" does and doesn't mean

I don't think controlling the risk of a portfolio by blending bonds with stocks requires an assessment as to whether or not the market is efficient. How risky the market is comes from a empirical observation rather than from theory. I don't think most Bogleheads concern themselves with what efficien...
by dbr
Sat Jan 20, 2018 10:55 am
Forum: Personal Finance (Not Investing)
Topic: Are Retirement Accounts Protected from Lawsuits in Virginia?
Replies: 3
Views: 330

Re: Are Retirement Accounts Protected from Lawsuits in Virginia?

Maybe this thread is helpful: https://www.bogleheads.org/forum/viewtopic.php?t=134808 I do know the issue in general is lack of exemption from liability not in bankruptcy for IRAs. It is difficult to find data that is specific to those two conditions (IRA, not bankruptcy). Generally in bankruptcy re...
by dbr
Sat Jan 20, 2018 10:49 am
Forum: Investing - Help with Personal Investments
Topic: Lost money through Bitconnect scam - learned my lesson
Replies: 94
Views: 6891

Re: Lost money through Bitconnect scam - learned my lesson

i'm sorry you didn't read my post from December 17, 2017 before putting money into bitconnect: https://www.bogleheads.org/forum/viewtopic.php?t=234790 If you had read my post, would you have stayed away or not? The answer to that tells you if you will overlook things that are too good to be true fo...
by dbr
Sat Jan 20, 2018 10:25 am
Forum: Investing - Help with Personal Investments
Topic: Investment Options (Friend)
Replies: 7
Views: 302

Re: Investment Options (Friend)

I agree some 401k to which he has access is a good choice as well, or better, than an IRA.
by dbr
Sat Jan 20, 2018 10:23 am
Forum: Investing - Theory, News & General
Topic: Buying overseas?
Replies: 1
Views: 250

Re: Buying overseas?

Is buying overseas the best idea? Here's an interesting article, https://money.usnews.com/money/blogs/on-retirement/2014/02/18/12-reasons-to-buy-real-estate-overseas I guess the article would be more helpful if it also listed 12 reasons not to buy overseas. Personally I have no idea, but my assumpt...
by dbr
Sat Jan 20, 2018 10:15 am
Forum: Investing - Help with Personal Investments
Topic: Investment Options (Friend)
Replies: 7
Views: 302

Re: Investment Options (Friend)

All of those ERs are too high. They aren't really ERs but rather fund costs with fees added in for the plan he is in.

If he is no longer employed by this company he should roll over the assets to an IRA or Roth IRA at a reasonable broker and buy reasonable funds with the money.
by dbr
Sat Jan 20, 2018 10:11 am
Forum: Investing - Help with Personal Investments
Topic: Lifestrategy Growth and Total Stock market -Roth
Replies: 10
Views: 741

Re: Lifestrategy Growth and Total Stock market -Roth

kerplunk wrote:
Sat Jan 20, 2018 10:02 am
I think he needs to take control of his investments and put some effort into settling on an asset allocation. If he already has, he should share it with you.

One should not invest based on what has performed well recently. Invest according to one’s IPS.
I second this.
by dbr
Sat Jan 20, 2018 10:04 am
Forum: Investing - Help with Personal Investments
Topic: Job offer - no 401k offered
Replies: 25
Views: 2810

Re: Job offer - no 401k offered

I am considering a job offer - like everything about the job except the employer does not offer 401k at all. As DH is also working, what are our options in lieu of 401k to save on taxes ? We understand IRA may be an option but it has a limit of $5500 vs the $18500 limit of 401k. Any suggestions ple...
by dbr
Sat Jan 20, 2018 9:59 am
Forum: Investing - Help with Personal Investments
Topic: Inherited Stocks, Dividends, and Taxes
Replies: 10
Views: 494

Re: Inherited Stocks, Dividends, and Taxes

Thanks again for all replies. I see the distinction between the dividend being treated as short term capital gains, not ordinary income. I think in our scenario it will end up being taxed at ordinary income rates, but must be filled out on the Schedule D and Qualified Dividends and Capital Gain Wor...
by dbr
Sat Jan 20, 2018 9:25 am
Forum: Personal Finance (Not Investing)
Topic: Stats on When People Take Social Security
Replies: 168
Views: 10836

Re: Stats on When People Take Social Security

This too is our situation where my wife was a stay home mom so she has earned only a small amount towards her own SS, but I was under the impression that she would need to wait until FRA to ensure should would receive a whole 50% of my SS once I reach FRA. Note she is 2.5 years older so my plan was...
by dbr
Sat Jan 20, 2018 9:19 am
Forum: Investing - Theory, News & General
Topic: Why can you only send dividends/capital gains from vanguard funds to your bank account at vanguard?
Replies: 8
Views: 802

Re: Why can you only send dividends/capital gains from vanguard funds to your bank account at vanguard?

Just as a comparison, all the dividends paid at any of my brokers (there are three) just go into sweep accounts and I manually move the money where I want or need it at any point in time. I really haven't bothered to investigate setting up anything else. Among all the possible places cash can reside...
by dbr
Fri Jan 19, 2018 5:07 pm
Forum: Investing - Help with Personal Investments
Topic: Quesiton about Bond Funds
Replies: 4
Views: 484

Re: Quesiton about Bond Funds

Example here is VBTLX as an example. I see the SEC Yield is 2.62% which exactly matches the current value of the 10 Year Treasury yield. However, I know that VBTLX holdings are not strictly 10 year but rather a mix of 64% Treasuries of varying lengths (2Y, 5Y, 10Y) and other types of bonds as well....
by dbr
Fri Jan 19, 2018 4:23 pm
Forum: Investing - Help with Personal Investments
Topic: Assistance with parents retirement strategy
Replies: 4
Views: 527

Re: Assistance with parents retirement strategy

Questions:[/u][/b] 1. The 2015 and 2016 withdrawals were high due to one-time expenses (e.g., refurbishing a bathroom and other household expenses). Any recommendations on how to handle one-time expenses? Do you just try to lower your expenses in subsequent years to offset the high withdrawals? Sor...
by dbr
Fri Jan 19, 2018 1:41 pm
Forum: Personal Consumer Issues
Topic: Alternatives to Subaru Forrester
Replies: 34
Views: 1816

Re: Alternatives to Subaru Forrester

Back to the topic of alternatives the Outback is quieter and better riding than the Forrester. For some people that would sway a decision. The Forrester is just marginally easier to enter and exit and see out of.
by dbr
Fri Jan 19, 2018 1:31 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard Brokerage Tax Forms
Replies: 6
Views: 896

Re: Vanguard Brokerage Tax Forms

I went and looked at my TurboTax prepared tax returns and dividends and interest are reported by payer, where payer is an institution and not a fund. That is, the tax return totaled all the payments from all the funds held at that broker. There are separate reports for my wife and for me as we do no...
by dbr
Fri Jan 19, 2018 12:18 pm
Forum: Investing - Help with Personal Investments
Topic: Case For/Against Financial Advisor + Portfolio
Replies: 8
Views: 518

Re: Case For/Against Financial Advisor + Portfolio

Expected return on a portfolio is determined by what assets are held less costs. By assets one means stocks vs bonds and within stocks the distribution over factors such as US/International, size, value, etc. and for bonds duration and credit risk, etc. When you vary those factors you also vary the ...
by dbr
Fri Jan 19, 2018 12:08 pm
Forum: Investing - Help with Personal Investments
Topic: Inherited Stocks, Dividends, and Taxes
Replies: 10
Views: 494

Re: Inherited Stocks, Dividends, and Taxes

Thanks for the replies. Hypothetical calculation below, does this look correct? 1000 shares of ABC at a value of $9/share on date of death for total value of $9k. Date of Death was November 1st, 2016. Dividend pays on December 1st, 2016, for $90 total, buying 9 shares at $10 each. Other dividends p...
by dbr
Fri Jan 19, 2018 12:02 pm
Forum: Investing - Help with Personal Investments
Topic: Inherited Stocks, Dividends, and Taxes
Replies: 10
Views: 494

Re: Inherited Stocks, Dividends, and Taxes

Follow-up question, I am assuming the brokerage would send me the tax form with the numbers for taxes owed sometime during the January to March time frame after the stocks are sold. Is that correct? I am not too worried about the fine accounting, just if my general understanding is correct. I would...
by dbr
Fri Jan 19, 2018 11:07 am
Forum: Investing - Help with Personal Investments
Topic: Inherited Stocks, Dividends, and Taxes
Replies: 10
Views: 494

Re: Inherited Stocks, Dividends, and Taxes

The dividend reinvestments are new purchases of stock that have their own basis if you sell then using specific lot identification. They will have their own gains and losses which would be short term if held less than a year. The amount of money involved is probably too small to bother doing any fin...
by dbr
Fri Jan 19, 2018 11:04 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Portfolio Watch Evaluation -- Help Needed.
Replies: 14
Views: 784

Re: Vanguard Portfolio Watch Evaluation -- Help Needed.

It makes no sense to look at those kinds of comments. If you know how your portfolio is distributed across size and value dimensions and read about what those mean, then you can decide for yourself what you want to do. The Vanguard description of your portfolio is baloney. In reality TSM holds growt...
by dbr
Fri Jan 19, 2018 10:45 am
Forum: Investing - Theory, News & General
Topic: 10 years expenses in FI
Replies: 49
Views: 4730

Re: 10 years expenses in FI

Thoughts? People should quantitatively evaluate whether or not there is actually a financial benefit to all this "engineering" before they decide to take comfort in it. Sleep factor is an over-rated, even meaningless, criterion for devising a retirement plan. There are much better routes to mental ...
by dbr
Fri Jan 19, 2018 10:01 am
Forum: Personal Finance (Not Investing)
Topic: What can I do to fight this ridiculous medical bill?
Replies: 86
Views: 4051

Re: What can I do to fight this ridiculous medical bill?

I would say go back to your insurance company to see if they can/will do anything and after that see if you can negotiate a reduction from the hospital.
by dbr
Fri Jan 19, 2018 9:47 am
Forum: Investing - Help with Personal Investments
Topic: Invest or keep in cash
Replies: 1
Views: 447

Re: Invest or keep in cash

Savings for a house in two or three years should just be in cash. It is your (our) bad luck that interest rates are low right now. That also means the cost of borrowing money for a house is low right now. You should probably be thankful for that.
by dbr
Fri Jan 19, 2018 9:29 am
Forum: Personal Finance (Not Investing)
Topic: Someone Needs To Pay For What They Did (Advice sought)
Replies: 25
Views: 3814

Re: Someone Needs To Pay For What They Did (Advice sought)

I wouldn't approach the landlord to pay for it but instead would advise her, with backup, that it was done by her vendor while you were not at home. I'd let her know that I expect the maintenance company to pay the bill and ask if she wanted me to contact them or will she contact them on her own. I...
by dbr
Fri Jan 19, 2018 9:24 am
Forum: Investing - Help with Personal Investments
Topic: High Dividend Stocks as bond substitute?
Replies: 32
Views: 1997

Re: High Dividend Stocks as bond substitute?

Stocks are not bonds. Allocation should be set by need, ability, and willingness to take risk. Sometimes there are no cherries, only pits, in the bowl.
by dbr
Fri Jan 19, 2018 9:21 am
Forum: Investing - Help with Personal Investments
Topic: How to step in?
Replies: 10
Views: 967

Re: How to step in?

DCA is a cover up for not knowing what you want your investment plan to be. The best fix for that is to read and learn and come up with a good plan that you understand. In the meantime it does make sense not to be hasty and to make the mistake of being too cautious rather than the mistake of being f...