Search found 72 matches

by laidback_and_relaxed
Tue Oct 15, 2019 7:52 pm
Forum: Investing - Theory, News & General
Topic: Bank of America declares 'the end of the 60-40' standard portfolio
Replies: 88
Views: 15233

Re: Bank of America declares 'the end of the 60-40' standard portfolio

This, and other similar positions for greater equity positions in investors' asset allocation, seem to ignore that for many their investment needs to produce income that will regularly be withdrawn. Bonds, at whatever rate of return, are typically safer than equities (keeping the discussion to inves...
by laidback_and_relaxed
Wed Oct 09, 2019 7:59 am
Forum: Investing - Theory, News & General
Topic: Only Good Argument Against Indexed Funds
Replies: 14
Views: 2967

Only Good Argument Against Indexed Funds

This Reuters article posted on Yahoo Finance is the 1st and only good argument I’ve seen against passive funds (and ETFs?). Basically it says that passive funds don’t weigh in on management issues like management compensation and such, letting poorly run companies get away with more. The article com...
by laidback_and_relaxed
Thu Sep 05, 2019 11:51 am
Forum: Personal Finance (Not Investing)
Topic: LTC Monthly Coverage Amount
Replies: 12
Views: 924

Re: LTC Monthly Coverage Amount

I figured on co-insuring a certain amount of my long term care when I acquired my LTCI policy from Genworth years ago. It does include an inflation factor that increases my coverage annually. I'm not sure where I'll reside in the event of a LTC event or how long it will be, so it's difficult to esti...
by laidback_and_relaxed
Wed Aug 21, 2019 6:42 am
Forum: Investing - Theory, News & General
Topic: [Book: Living off Your Money, by M. McClung (Prime Harvesting)]
Replies: 470
Views: 118470

Re: [Book: Living off Your Money, by M. McClung (Prime Harvesting)]

How does Prime or Alternate Prime work when you run out of Bonds, as in a long period (number of years) where your equities doen't ever get to 20% over target (inflation adjusted)? What is the target for balancing back in to Bonds? What do you mean "how does it work"? I don't really understand your...
by laidback_and_relaxed
Tue Aug 20, 2019 7:36 am
Forum: Investing - Theory, News & General
Topic: [Book: Living off Your Money, by M. McClung (Prime Harvesting)]
Replies: 470
Views: 118470

Re: [Book: Living off Your Money, by M. McClung (Prime Harvesting)]

How does Prime or Alternate Prime work when you run out of Bonds, as in a long period (number of years) where your equities doen't ever get to 20% over target (inflation adjusted)? What is the target for balancing back in to Bonds? For example, start with $1M in equities and $200K in bonds (80/20, I...
by laidback_and_relaxed
Thu Aug 15, 2019 7:15 am
Forum: Personal Investments
Topic: What is your minimum loss in order to make TLH worthwhile?
Replies: 9
Views: 803

Re: What is your minimum loss in order to make TLH worthwhile?

The decision to TLH or not should rely more on your situation. I plan on spending most if not all of my investments over my lifetime, so I believe TLH makes no sense at whatever loss. [I've been carrying a large loss forward since the dot com bubble bursting, and I'm using a buy and hold generally s...
by laidback_and_relaxed
Mon Aug 12, 2019 8:34 am
Forum: Investing - Theory, News & General
Topic: With Rates Falling Should U Buy Annuity?
Replies: 18
Views: 2017

Re: With Rates Falling Should U Buy Annuity?

I'm seriously looking at an Fixed Annuity for a maturing bond in my bond ladder later this year, instead of rolling it over into another bond. High credit 5 year through 8 year bonds are yielding 2.5% to 3.0% at best, less for AA and AAA credit quality. Bond funds aren't yielding much more and I exp...
by laidback_and_relaxed
Wed Jul 24, 2019 7:25 pm
Forum: Investing - Theory, News & General
Topic: The Bucket Approach
Replies: 74
Views: 6352

Re: The Bucket Approach

I thought this was interesting: http://livingoffyourmoney.com/ The free preview is actually pretty adequate in itself. It's surprising, really, just how little difference reasonable and rational technique makes. In the end you still have a SWR of 4%. Spoiler: The "three bucket" strategy turned out ...
by laidback_and_relaxed
Fri Jul 05, 2019 8:55 am
Forum: Investing - Theory, News & General
Topic: The secondary market value for brokered CDs doesn't seem consistent with current interest rates.
Replies: 6
Views: 631

Re: The secondary market value for brokered CDs doesn't seem consistent with current interest rates.

Are the CDs comparable with regards to features? Callable CDs are typically offered at a higher yield, depending on the particulars of the CD (length of time, when callable). And then there's the commissions associated with the sale/purchase, though commissions will only decrease the yield on second...
by laidback_and_relaxed
Wed Jul 03, 2019 9:06 am
Forum: Investing - Theory, News & General
Topic: Doubling Your Money
Replies: 47
Views: 12102

Re: Doubling Your Money

arcticpineapplecorp. wrote:
Sun May 13, 2018 11:54 am
. And that's with dividends reinvested! :oops: After inflation it would've been even worse!

I don't think stock price charts you find on Vanguard, Fidelity, Yahoo, etc. include dividends. It's a price history chart, isn't it?
by laidback_and_relaxed
Fri Jun 28, 2019 2:32 am
Forum: Investing - Theory, News & General
Topic: How do you trade individual bonds in this inverted yield curve environment?
Replies: 21
Views: 1226

Re: How do you trade individual bonds in this inverted yield curve environment?

I ladder individual bonds and notes, with infrequent sells (selling only to get out of individual bonds that get downgraded credit ratings below A). I attempt to match up maturing bonds/notes in the ladder with expected expenses/liabilities in my retirement. So the way I play an inverted yield curv...
by laidback_and_relaxed
Thu Jun 27, 2019 5:58 am
Forum: Investing - Theory, News & General
Topic: How do you trade individual bonds in this inverted yield curve environment?
Replies: 21
Views: 1226

Re: How do you trade individual bonds in this inverted yield curve environment?

I ladder individual bonds and notes, with infrequent sells (selling only to get out of individual bonds that get downgraded credit ratings below A). I attempt to match up maturing bonds/notes in the ladder with expected expenses/liabilities in my retirement. So the way I play an inverted yield curve...
by laidback_and_relaxed
Wed Jun 12, 2019 8:32 am
Forum: Investing - Theory, News & General
Topic: CD vs Treasury Spread
Replies: 13
Views: 2104

Re: CD vs Treasury Spread

Relative to the short end of the curve, keep in mind the fixed purchase date structure of CDs if your only purchasing new (usually commission free vs purchasing on the open market where there are commissions to be paid). Banks offer CDs with future purchase dates that start the clock ticking for int...
by laidback_and_relaxed
Wed Jun 12, 2019 8:17 am
Forum: Investing - Theory, News & General
Topic: Slice and dice for bonds
Replies: 49
Views: 3656

Re: Slice and dice for bonds

I structure my bonds in a Liability Matching Portfolio, or a ladder, that matches up with expected withdrawals in retirement, sort of. I say sort of due to the variability in my withdrawal amounts, hard to predicted years in the future. So I'm more interested in duration, quality, return, and abilit...
by laidback_and_relaxed
Sun May 19, 2019 7:42 pm
Forum: Investing - Theory, News & General
Topic: Undisclosed Fees with "Market on Close" Orders
Replies: 23
Views: 1408

Re: Undisclosed Fees with "Market on Close" Orders

I want to close this thread with my apologies for casting aspersions on E*Trade and the brokerage industry regarding this trade made as requested using “Market On Close”. Overall, I’m quite satisfied with the trade. The trade closed exactly at the price reported at the close for the day for SPY by Y...
by laidback_and_relaxed
Fri May 17, 2019 1:35 pm
Forum: Investing - Theory, News & General
Topic: Undisclosed Fees with "Market on Close" Orders
Replies: 23
Views: 1408

Re: Undisclosed Fees with "Market on Close" Orders

OP, from reading the comments and your document, it seems like MOC just filled you at a price that is different from NAV. ETFs trade differently from NAV all the time, even in the day. You might have repeatedly sold or bought SPY before using limit orders and got filled in the day at a significant ...
by laidback_and_relaxed
Thu May 16, 2019 1:37 pm
Forum: Investing - Theory, News & General
Topic: Undisclosed Fees with "Market on Close" Orders
Replies: 23
Views: 1408

Re: Undisclosed Fees with "Market on Close" Orders

Could you provide a detailed example/explanation/description of the fee(s) that you are seeing? Is it an SEC fee or an additional fee by e*trade for using that order type? Not clear from your posting. The SPY NAV closed 15 bs higher than what the MOC transaction in my account closed at. I assume it...
by laidback_and_relaxed
Thu May 16, 2019 9:40 am
Forum: Investing - Theory, News & General
Topic: Undisclosed Fees with "Market on Close" Orders
Replies: 23
Views: 1408

Undisclosed Fees with "Market on Close" Orders

FYI, never again will I use "Market on Close" (MOC) order with a brokerage service. I've recently started drawing from my after tax brokerage account at E*Trade, where I usually have used Limit Orders to sell my ETFs. I'm matching these transactions in my IRA accounts with Fidelity to maintain a con...
by laidback_and_relaxed
Sat May 11, 2019 9:34 am
Forum: Personal Finance (Not Investing)
Topic: Question on Capital One $450 bonus offer
Replies: 12
Views: 1412

Re: Question on Capital One $450 bonus offer

I recevied the same offer from Cap One. I'm assuming any deposit via my attached bank account would qualify. I will pull into that WF account from my post tax brokerage account, then transfer from WF bank account to the Cap One MM account. I'm also assuming I can continue to withdraw existing funds ...
by laidback_and_relaxed
Wed Apr 17, 2019 7:06 pm
Forum: Investing - Theory, News & General
Topic: What is your one favorite fixed income for retirement?
Replies: 46
Views: 7030

Re: What is your one favorite fixed income for retirement?

I'm a little different than most folks on this site, I use individual corporate bonds (A rated and above), Treasuries, and CDs, all in a ladder that goes through the next 7 to 8 years. You'll see mention here and in the field to it as a "Liability Matching Portfolio", and I used corporate bonds mos...
by laidback_and_relaxed
Mon Apr 15, 2019 1:46 pm
Forum: Investing - Theory, News & General
Topic: What is your one favorite fixed income for retirement?
Replies: 46
Views: 7030

Re: What is your one favorite fixed income for retirement?

I'm a little different than most folks on this site, I use individual corporate bonds (A rated and above), Treasuries, and CDs, all in a ladder that goes through the next 7 to 8 years. You'll see mention here and in the field to it as a "Liability Matching Portfolio", and I used corporate bonds most...
by laidback_and_relaxed
Mon Mar 25, 2019 10:23 pm
Forum: Personal Finance (Not Investing)
Topic: Long-term care insurance
Replies: 45
Views: 2504

Re: Long-term care insurance

The life insurance rider isn't inflation protected, at least in the policies that I've seen and hear of. That's a big deal if your expecting to live unassisted for many years and expect that any claims will happen later in your life. All LTCI policies offer some sort of inflation protection, it come...
by laidback_and_relaxed
Fri Mar 22, 2019 2:14 pm
Forum: Investing - Theory, News & General
Topic: Overbalancing, interested please explain it to me
Replies: 44
Views: 2219

Re: Overbalancing, interested please explain it to me

I'm in the deaccumulation phase, so my strategy is based on that (not buying equities again ever, other than dividend reinvestment). Overbalancing for those of us in that category would be anything more than inflation adjusted increase of 20% over whatever timeframe. I'm very comfortable with that a...
by laidback_and_relaxed
Fri Dec 07, 2018 4:59 pm
Forum: Investing - Theory, News & General
Topic: If everybody indexed, the only word you could use is chaos, catastrophe
Replies: 107
Views: 18823

Re: If everybody indexed, the only word you could use is chaos, catastrophe

All the arguments against ETF and passive investing that I've seen assumes there's one big common ETF (passive investment) that everybody uses. That's not the case with 1000's of passive investment options, each with a unique slice of whatever market they're representing (at least that's what the ma...
by laidback_and_relaxed
Thu Nov 01, 2018 4:37 pm
Forum: Personal Consumer Issues
Topic: Do capital losses count against ACA MAGI?
Replies: 14
Views: 2695

Re: Do capital losses count against ACA MAGI?

Resurrecting this older thread. I have over $75K of capital loss carry forward dating back to my stock losses taken in 2000. The annual $3K credit was nice. I retired last year, my wife a few years ago, now 60. I'm 65, on Medicare, and planning on after tax brokerage account withdrawals to fund my n...
by laidback_and_relaxed
Sat Oct 20, 2018 2:58 am
Forum: Personal Consumer Issues
Topic: Morning/Nighttime Stretching Routine
Replies: 11
Views: 1529

Re: Morning/Nighttime Stretching Routine

I need to add a little context to my situation before I answer completely. I recently stopped working and focus now on enjoying life, reflecting on my past, getting healthy and recently started researching Christian Theologies, and I live alone. I had one knee operation about 12 years ago and the ot...
by laidback_and_relaxed
Fri Sep 07, 2018 3:16 pm
Forum: Investing - Theory, News & General
Topic: "Safeguarding Your Wealth From The Effects Of Cognitive Decline"
Replies: 52
Views: 5693

Re: "Safeguarding Your Wealth From The Effects Of Cognitive Decline"

I'm in California where we have a special licensed professional fiduciary. I've provided her with Springing Durable Power of Attorney. The process is pretty well defined by law with respect to having her pick up my financial duties, and the DPA. Licensed Professional Fiduciaries won't necessarily pr...
by laidback_and_relaxed
Thu Apr 26, 2018 2:51 am
Forum: Personal Consumer Issues
Topic: How did you tell the boss you're leaving/retiring?
Replies: 129
Views: 15261

Re: How did you tell the boss you're leaving/retiring?

My boss told me I was retiring, and handed me my last paycheck, shook my hand and said goodbye. It was mostly a one-way communication from him to me. He knew my personal situation and that of Silicon Valley; I wouldn't be finding another job. All-in-all it was all okay. I've been working 43 solid ye...
by laidback_and_relaxed
Sun Apr 22, 2018 3:50 am
Forum: Investing - Theory, News & General
Topic: when to rebalance?
Replies: 12
Views: 1603

Re: when to rebalance?

I've recently "retired" and started relying on my investment portfolio and a few other sources for income (de-accumulating). I was targeting a 66/34 AA and ended up closer to a 69/31 AA for starters, due to the recent gains in stocks. I'm of the school that believes in rebalancing infrequently and i...
by laidback_and_relaxed
Sun Feb 18, 2018 2:25 pm
Forum: Investing - Theory, News & General
Topic: premium bonds
Replies: 7
Views: 605

Re: premium bonds

Yea, bond pricing is confusing, I look at it as % relative to par and not a $ figure. Most bonds are in $1,000 denominations. For some reason, large institutions favor premium priced bonds. Retail investors favor discounted bonds, offered for less than par. I don't think !06% is far off. My own ladd...
by laidback_and_relaxed
Sun Feb 18, 2018 2:17 pm
Forum: Investing - Theory, News & General
Topic: 6 and 12 MO CD's or Treasury Bills
Replies: 13
Views: 3996

Re: 6 and 12 MO CD's or Treasury Bills

I've been purchasing short term CDs and Treasury Bills for several years now, as part of a diversified portfolio and in my retirement accounts. I'll go for the higher yield at the time the money comes available. I favor Treasury Bills, zero coupons, since I can engage the money immediately for retur...
by laidback_and_relaxed
Wed Nov 29, 2017 6:49 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Brokered CDs
Replies: 3
Views: 816

Re: Fidelity Brokered CDs

Fidelity customer here, and I buy brokered CDs regularly. And nope, not until the maturity date of the CD. The funds will be deposited and available on the same day, in my experience.
by laidback_and_relaxed
Sat Oct 14, 2017 8:06 am
Forum: Personal Investments
Topic: Bonds v. bond funds
Replies: 36
Views: 2804

Re: Bonds v. bond funds

Individual bond investor here, and claim that it is quite different than owning a bond fund or ETF. I've averaged about .5% more than the Fidelity Total Bond Fund over the last 5 years. My objective is to match future liabilities with a cash flow generated by the bond ladder, with some modifications...
by laidback_and_relaxed
Sat Sep 16, 2017 1:29 pm
Forum: Investing - Theory, News & General
Topic: Basic questions on credit ratings
Replies: 5
Views: 915

Re: Basic questions on credit ratings

Ratings don't change the closer the particular bond is to maturing. What does change is the price and "value", IMHO. The Pitney Bowes bond I added to my 6 year bond ladder six years ago was rated at BAA3, acquired at a premium. The price started out at greater than 100% of par, and as it approached ...
by laidback_and_relaxed
Wed Aug 09, 2017 3:44 am
Forum: Investing - Theory, News & General
Topic: Are Index Funds Evil?
Replies: 30
Views: 5444

Re: Are Index Funds Evil?

I'm amazed at the number of pundits espousing how bad indexed ETFs (and mutual funds) are. I'm comforted by the universal trait they all have, a vested interest in active management. You have to love capitalism! :happy
by laidback_and_relaxed
Fri Jun 23, 2017 11:04 am
Forum: Non-US Investing
Topic: USD money market fund/T-bills
Replies: 5
Views: 1101

Re: USD money market fund/T-bills

I'm using very short term CDs (FDIC insured) and US Treasury Notes, from my broker, Fidelity. These are commission free and provide a small non-zero positive yield, versus what I'm seeing in available MM funds. 3 month yield is about 1% (annualized), maybe a few basis points more. It's a convenient ...
by laidback_and_relaxed
Tue May 09, 2017 11:08 am
Forum: Investing - Theory, News & General
Topic: Buffet and Bogle on bonds
Replies: 24
Views: 4123

Re: Buffet and Bogle on bonds

When listening to or reading an interview of a financial pundit you must keep in mind their perspective. In this case Buffett's perspective was definitely Berkshire Hathaway's perspective. He was speaking about the investment strategy of the company and I agree 100%, if you're an ongoing concern wit...
by laidback_and_relaxed
Thu May 04, 2017 2:45 pm
Forum: Personal Finance (Not Investing)
Topic: CapitalOne360 No More Living Trust Option for New Accounts
Replies: 6
Views: 2392

CapitalOne360 No More Living Trust Option for New Accounts

I just spoke with CapitalOne360 after opening a new MM account (1% APY for funds over $10K), already have a savings account (.75% APY), titled in my Living Trust. I was informed that they no longer retitle accounts to Trusts. The only option I had to create the MM account was to title it in my name....
by laidback_and_relaxed
Tue May 02, 2017 10:37 am
Forum: Investing - Theory, News & General
Topic: Impact of Interest Rates on Bonds vs. Bond Mutual Funds
Replies: 16
Views: 1731

Re: Impact of Interest Rates on Bonds vs. Bond Mutual Funds

Bond funds as a risk mitigator work as long as you have a longer term planning horizon. Anything less than 5 years or so opens you up to the possibility of your bond fund's value significantly decreasing with the rise in interest rates expected. The values come back as the fund acquires newer bonds ...
by laidback_and_relaxed
Wed Apr 12, 2017 12:52 pm
Forum: Personal Investments
Topic: absolute amount or % to trigger a TLH
Replies: 12
Views: 1446

Re: absolute amount or % to trigger a TLH

I vote, no. But I don't see the logic of TLH in most circumstances. Given the assumption that you will consume all invested assets at some point, TLH is just "kicking the can down the road". If your tax bracket will be a lot lower at some point in time, TLH during a period where your tax bracket is ...
by laidback_and_relaxed
Fri Mar 03, 2017 10:54 am
Forum: Investing - Theory, News & General
Topic: Vanguard and bond recomendations
Replies: 18
Views: 2709

Re: Vanguard and bond recomendations

Keep in mind who's doing the saying that bonds are dangerous or a good diversifier. If you trade, yep. Bonds are at all time highs in price and lows in yields. Buying long is very dangerous, if you plan on bonds appreciating. Buying bad credit quality bonds unnecessarily risks principal and default ...
by laidback_and_relaxed
Wed Feb 15, 2017 4:33 pm
Forum: Personal Investments
Topic: Can I roll from an active 401(k) to an IRA?
Replies: 7
Views: 754

Re: Can I roll from an active 401(k) to an IRA?

"in service roll-over", plan determined. Some plans don't allow or restrict to so many per year or only after 59 1/2. Good luck!
by laidback_and_relaxed
Mon Feb 13, 2017 5:09 pm
Forum: Personal Investments
Topic: Does anyone have $0 in cash (except for bills), not even an emergency fund?
Replies: 45
Views: 3191

Re: Does anyone have $0 in cash (except for bills), not even an emergency fund?

Lots of cash (12%), thinking of moving most of the cash to rolling, short term FDIC insured CDs in my IRA. 3 month CDs, FDIC insured, earning 70 basis points beats the pants off the 1 or 2 basis points I get in MM or other FDIC insured accounts. I'm also looking at 3 month AA rated corporate bonds, ...
by laidback_and_relaxed
Thu Feb 02, 2017 3:29 pm
Forum: Investing - Theory, News & General
Topic: bond funds vs owning individual bonds
Replies: 45
Views: 5304

Re: bond funds vs owning individual bonds

There's a real difference for me, in that the bond ladder is funding future (planned) liabilities, or required retirement income. In my case it's not a perpetual or indefinite rolling ladder and individual bonds make more sense for me, versus bond funds. I also have a large enough income investing p...
by laidback_and_relaxed
Wed Feb 01, 2017 5:12 pm
Forum: Personal Investments
Topic: REITs
Replies: 7
Views: 1501

Re: REITs

My experience is with low cost public REIT ETFs only, and they're not 100% correlated to the S&P 500, only slightly. More significantly, they're negatively correlated with the 10 year US Treasury and interest rate increases in general. As interest rates rise, REITS face "headwinds" due to borrowing ...
by laidback_and_relaxed
Mon Jan 16, 2017 10:40 am
Forum: Investing - Theory, News & General
Topic: Do you manually do bookkeeping for all your investments by yourself?
Replies: 17
Views: 2773

Re: Do you manually do bookkeeping for all your investments by yourself?

Microsoft Money 98 user here. I manually enter in all transactions, almost 20 years now. Here's hoping I'll continue to be able to reinstall with each new platform technology. I'm not wild about aggregating online web sites that you provide credentials to and they regularly poll/collect from your br...
by laidback_and_relaxed
Tue Jan 03, 2017 3:08 pm
Forum: Investing - Theory, News & General
Topic: 2017 and on - Bond Strategy
Replies: 12
Views: 4608

Re: 2017 and on - Bond Strategy

I take a more aggressive approach, even as I approach retirement in 2 to 3 years. I don't see much difference between cash (and equivalents) and Treasuries to make a difference in my accumulation strategy. I prefer to overweight my cash allocation, not pay the extra fees associated with Treasury ETF...
by laidback_and_relaxed
Tue Dec 27, 2016 1:00 pm
Forum: Investing - Theory, News & General
Topic: Should individual bonds be held close to retirement?
Replies: 33
Views: 2878

Re: Should individual bonds be held close to retirement?

LMP investor here, saves me at least .5% a year in fees over a Bond fund and 3% or more over an annuity, IMHO.
by laidback_and_relaxed
Sat Dec 03, 2016 7:31 am
Forum: Investing - Theory, News & General
Topic: An opinion on bond investing in today's environment
Replies: 15
Views: 1565

Re: An opinion on bond investing in today's environment

Growth or Income? We all have a tendency to use one common standard for measuring or strategizing our investment portfolios. It's not that easy. People should use a different standard, approach, process for measuring their income investments. If you're not near or in retirement, this isn't of any in...
by laidback_and_relaxed
Thu Dec 01, 2016 3:18 pm
Forum: Personal Consumer Issues
Topic: Choosing a trustee and investment options
Replies: 4
Views: 940

Re: Choosing a trustee and investment options

As of today, the successor trustee on my Living Trust is family and want to change that. My Trust isn't super complicated, but I'm divorced and have children from that marriage, as well as being currently married with step children and other complications (like living out of state from all family an...