Search found 5278 matches

by Dandy
Wed Jun 27, 2018 8:15 pm
Forum: Investing - Help with Personal Investments
Topic: Do you/How do you stress-test your plan?
Replies: 29
Views: 1596

Re: Do you/How do you stress-test your plan?

have enough assets in .... bond funds to cover my current draw down needs for X years. For me I am able to do that to age 90 or 20 years. The excess is invested .... +1 Don't know if it is a stress test; but, that's my approach. The way I look at it the stress depends a lot on the reliance on equit...
by Dandy
Wed Jun 27, 2018 11:50 am
Forum: Investing - Help with Personal Investments
Topic: Do you/How do you stress-test your plan?
Replies: 29
Views: 1596

Re: Do you/How do you stress-test your plan?

Ron Scott Can I ask why you limit bonds to the short-term ones in your safe-stash? I don't limit bonds to short term. I actually have intermediate bond funds they are included in the "excess" portfolio witch is 67/33. So the 33 is intermediate bonds mostly included in Balanced Index and Wellesley In...
by Dandy
Wed Jun 27, 2018 7:15 am
Forum: Investing - Help with Personal Investments
Topic: Do you/How do you stress-test your plan?
Replies: 29
Views: 1596

Re: Do you/How do you stress-test your plan?

In retirement I make sure that I have enough assets in FDIC products and short term bond funds to cover my current draw down needs for X years. For me I am able to do that to age 90 or 20 years. The excess is invested 67/33. I track my expenses to determine any expense creep and will adjust my asset...
by Dandy
Wed Jun 27, 2018 6:55 am
Forum: Investing - Help with Personal Investments
Topic: Am I getting the run around?
Replies: 24
Views: 4332

Re: Am I getting the run around?

If it is that hard to get basic information then it usually is that it isn't an accident. Usually, it means that don't want you to do it because they will get lower fees or that the fees will become obvious. The rip off of employees in many/most? 401k, 403b, 457 plans is a scandal. What should be a ...
by Dandy
Tue Jun 26, 2018 9:46 am
Forum: Personal Consumer Issues
Topic: Family dynamics/in laws/am I being petty?
Replies: 143
Views: 7588

Re: Family dynamics/in laws/am I being petty?

A classic no win family situation. Bring it up an you look cheap or don't and stew (pun intended). I would leave it alone but if you want to I would not do it at the restaurant. A discussion before hand would be better. Now if you are reasonably well off you will still look cheap. As I said a classi...
by Dandy
Tue Jun 26, 2018 9:37 am
Forum: Personal Consumer Issues
Topic: Chipmunk problem
Replies: 61
Views: 5383

Re: Chipmunk problem

I have a patio surrounded by RR ties and chipmunk holes. I use a have a heart trap without bait. Just put it by the hole entrance and have caught at least 60 over the last 4 years. Got number 7 this spring today. Seems like they are procreating faster than I'm trapping. :oops: But prior to trapping ...
by Dandy
Tue Jun 26, 2018 9:16 am
Forum: Investing - Help with Personal Investments
Topic: Could Annuities be considered Bonds in AA
Replies: 27
Views: 1758

Re: Could Annuities be considered Bonds in AA

Annuities are income streams similar to salary, pensions, social security etc. They reduce the draw down from your investments to support your lifestyle. So, it allows you to take more risk than if you didn't have this income stream. So, base your allocation on your ability to take risk (which is no...
by Dandy
Mon Jun 25, 2018 2:49 pm
Forum: Investing - Help with Personal Investments
Topic: Double Digits years of living expenses in Fixed Income
Replies: 29
Views: 2529

Re: Double Digits years of living expenses in Fixed Income

Draw down and living expense often are different amounts. Draw down excludes pension, Social Security, etc. Living expense I assume is your yearly expenses. I have 20 years of draw down in FDIC and short term bond products which is about 2/3 of my fixed income.
by Dandy
Mon Jun 25, 2018 7:04 am
Forum: Investing - Theory, News & General
Topic: Liability Matching Portfolios 20% failure rate?
Replies: 19
Views: 1484

Re: Liability Matching Portfolios 20% failure rate?

Let's face it there is no perfect retirement investment strategy that can assure that you don't run out of money needed over a 3 decade or more retirement unless you are extremely wealthy. You and/or your spouse can spend years in LTC, an insurance company can fail, high inflation, a prolonged terri...
by Dandy
Sun Jun 24, 2018 2:01 pm
Forum: Investing - Help with Personal Investments
Topic: Is this all investing is?
Replies: 38
Views: 3946

Re: Is this all investing is?

You seem to be caught up with saving/investing and not in having a decent life balance. Money/wealth is a means to help enjoy life and to make sure you have necessities for a lifetime. Being frugal doesn't mean becoming a miser who just gets enjoyment from counting his money. You need to focus a bit...
by Dandy
Sun Jun 24, 2018 1:46 pm
Forum: Investing - Help with Personal Investments
Topic: Hitting your number---Now What?
Replies: 19
Views: 3036

Re: Hitting your number---Now What?

Since you didn't provide much detail the responses will have to be general. I would suggest shifting to asset preservation vs growth. That usually means lowering your equity exposure and may include holding shorter duration bond funds and/or other "safe" fixed income e.g. a CD ladder. But it is hard...
by Dandy
Sun Jun 24, 2018 9:38 am
Forum: Investing - Help with Personal Investments
Topic: Double Digits years of living expenses in Fixed Income
Replies: 29
Views: 2529

Re: Double Digits years of living expenses in Fixed Income

No, I think it makes a lot of sense. I am 70 and have "enough" and recently took full SS at age 70. That makes my income come close to covering our current life style. I had 20 years worth of draw down dollars in FDIC products and short term bond funds to cover our expenses prior to taking SS. I hav...
by Dandy
Sun Jun 24, 2018 9:14 am
Forum: Investing - Theory, News & General
Topic: Heavy in equities?
Replies: 46
Views: 4960

Re: Heavy in equities?

Someone had a great post a while back that concluded “I have a 50-50 portfolio since I can tolerate losing half my money without any effect on my lifestyle. Because that’s the half I’m leaving to the kids.“ That’s the psychology of someone who really has “won the game”, with a withdrawal rate of 2%...
by Dandy
Sun Jun 24, 2018 6:02 am
Forum: Investing - Theory, News & General
Topic: Heavy in equities?
Replies: 46
Views: 4960

Re: Heavy in equities?

I am 70 and in retirement. My allocation is 43/57 and I have enough given my assets and pension/SS income. So, I could take more risk but lean toward asset preservation. I am surprised that it seems many nearing or in retirement seem to continue a high equity allocation. Given that some need to stil...
by Dandy
Sat Jun 23, 2018 9:44 pm
Forum: Investing - Help with Personal Investments
Topic: Dividend Tax Withholding at Vanguard?
Replies: 10
Views: 1274

Re: Dividend Tax Withholding at Vanguard?

I had distributions withheld in taxable accounts at Vanguard on the old platform. When they switched to the brokerage platform that stopped (without notification to me). When I found out I asked my rep and she said it wasn't possible on the brokerage platform. RMDs on the brokerage platform can have...
by Dandy
Sat Jun 23, 2018 10:33 am
Forum: Personal Finance (Not Investing)
Topic: Minimizing my money worries in retirement
Replies: 17
Views: 2863

Re: Minimizing my money worries in retirement

I like Dr. Bernstein's approach (if you have "enough") which I generally follow: 1. Determine the dollar amount you need to withdraw from your nest egg (after taxes) each year. 2. He suggests multiply that by 20 to 25 (years) and put that amount in "safe" products (e.g. individual TIPS/short term Tr...
by Dandy
Fri Jun 22, 2018 6:43 am
Forum: Investing - Help with Personal Investments
Topic: $1,700,000 from family trust...
Replies: 83
Views: 10940

Re: $1,700,000 "Portfolio Review" update from family trust

Question 1: Upon receiving the trust funds should we put all of it into a Money Market acct. first off? That would be a reasonable choice. I would choose the Federal or Treasury Money market. I have check writing on the Federal Money Market so I can invest in a Vanguard Fund or brokerage CD, move mo...
by Dandy
Thu Jun 21, 2018 8:47 pm
Forum: Personal Finance (Not Investing)
Topic: I think I am going to put down 35-40% on a house
Replies: 12
Views: 1593

Re: I think I am going to put down 35-40% on a house

A new house/mortgage and children on the way are often full of expense surprises. I would be careful not to put too much of a deposit down.
by Dandy
Thu Jun 21, 2018 1:20 pm
Forum: Investing - Help with Personal Investments
Topic: "Never time the market" vs. lump sum investment
Replies: 68
Views: 5440

Re: "Never time the market" vs. lump sum investment

I like to tell people who are concerned about the market to do the following: 1. Pick you stock/fixed income allocation 2. invest some immediately at that allocation. e.g. 20%? 30%? 3. Set up an automatic investment each month for the rest at your desired allocation to be completely invested in a ye...
by Dandy
Tue Jun 19, 2018 8:15 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 6845
Views: 1496019

Re: Anyone buying today?

My guess is the market is reacting to tariff war concerns. Lots of bluster and threats and some tariff increases. Don't see how this won't get "worse" since nations have their economies and pride at stake. So, today might be the first of a serial decline -- or not. I have no problem with people who ...
by Dandy
Tue Jun 19, 2018 8:03 am
Forum: Personal Finance (Not Investing)
Topic: Retire at 50: Should I?
Replies: 93
Views: 12807

Re: Retire at 50: Should I?

I think you need to take a look at your allocation. No pension, no SS for a long time, buy health insurance, fund retirement longer than you have worked. How would you fare if/when the equity market takes a big hit and stays down for a few years while you are withdrawing? Do you have skills that you...
by Dandy
Tue Jun 19, 2018 7:44 am
Forum: Investing - Help with Personal Investments
Topic: CD or Bonds?
Replies: 6
Views: 820

Re: CD or Bonds?

I like diversity in fixed income so having both bond funds and CDs makes sense to me. I currently I would lean to adding shorter term CDs e.g. 2 yrs rather than add to bond funds. But, remember the bond funds will recover as they replace older lower interest bonds with newer higher interest bonds. U...
by Dandy
Tue Jun 19, 2018 7:11 am
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation for a 26 year old?
Replies: 15
Views: 1495

Re: Asset Allocation for a 26 year old?

It looks as if the future is bright but it isn't quite there yet. Until you start you medical practice what you have is potential and debt. In a few years you probably will have a much better financial position. Actual risk tolerance is very hard to determine especially at age 26 during a long equit...
by Dandy
Mon Jun 18, 2018 9:58 am
Forum: Investing - Theory, News & General
Topic: You Can Market Time At Valuation Extremes
Replies: 64
Views: 7641

Re: You Can Market Time At Valuation Extremes

The problem with market timing at valuation extremes are the "being right too early" problem that I posted about earlier and also the definition of "extreme valuations." First I am not making any case the current markets are overvalued or extremely overvalued. Just that the topic needs to be explor...
by Dandy
Mon Jun 18, 2018 8:39 am
Forum: Investing - Theory, News & General
Topic: You Can Market Time At Valuation Extremes
Replies: 64
Views: 7641

Re: You Can Market Time At Valuation Extremes

thanks for the information. Don't you think Mr. Bogle should address in some detail what Bogleheads should do to determine extreme valuation and actions that should be considered? After all extreme valuation should be somewhat rare and the impact on equity assets when the "reversion to the mean" are...
by Dandy
Mon Jun 18, 2018 7:51 am
Forum: Investing - Theory, News & General
Topic: You Can Market Time At Valuation Extremes
Replies: 64
Views: 7641

Re: You Can Market Time At Valuation Extremes

Mr. Bogle says you can/should? He did around the 2000 meltdown. He cut back his equity allocation significantly. Around 2013 when the market was up 30% or so he reaffirmed the idea of taking action during extreme valuations -- but said at that time the equity market wasn't extremely overvalued. I do...
by Dandy
Sat Jun 16, 2018 4:54 pm
Forum: Personal Finance (Not Investing)
Topic: Tracking spending before retirement useful for estimating retirement expenses?
Replies: 72
Views: 4699

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

For most tracking monthly expenses while working is a good start to estimating retirement expenses. A big surprise can be health/dental expenses. While my company health insurance pretty much was the same --the loss of dental insurance was an expense surprise. I have a good dental history but the co...
by Dandy
Sat Jun 16, 2018 9:42 am
Forum: Investing - Help with Personal Investments
Topic: Should fixed income allocation necessarily change over the years?
Replies: 11
Views: 759

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

A lot depends on your retirement expenses and retirement income. If you don't need much withdrawals from your nest egg to cover "normal" retirement lifestyle than a more aggressive investment allocation won't be as risky to your retirement. Lots of changes for most people. No salary, bonus, contribu...
by Dandy
Fri Jun 15, 2018 8:15 pm
Forum: Investing - Theory, News & General
Topic: Flaw in Logic? CD ladder instead of bond funds
Replies: 63
Views: 5239

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

Why all or nothing. Each fixed income product has certain pros and cons. e.g. Bond funds have better liquidity -- for emergencies or rebalancing for example. CDs have a known interest rate and maturity date and a government guarantee but are less liquid. A short term Treasury fund avoids state incom...
by Dandy
Fri Jun 15, 2018 6:45 pm
Forum: Personal Finance (Not Investing)
Topic: Timeshare ever worth it? Please share details
Replies: 123
Views: 11361

Re: Timeshare ever worth it? Please share details

I have no actual experience in buying one but have friends that did an regret it. Things that didn't make me want to buy 1. the sales pitch - anything that good doesn't need that high pressure sales 2. No matter how much you like the location/deal never wanted to commit to decades of vacationing in ...
by Dandy
Fri Jun 15, 2018 6:28 pm
Forum: Investing - Theory, News & General
Topic: Which boglehead rule do you break--and are ok with
Replies: 152
Views: 12639

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

1 :happy Develop a workable plan 2 :happy Invest early and often 3 :happy Never bear too much or too little risk 4 :happy Diversify 5 ?Never try to time the market (will on occasion buy on really bad days within my equity target range) 6 :happy Use index funds when possible 7 :happy Keep costs low 8...
by Dandy
Fri Jun 15, 2018 6:13 pm
Forum: Investing - Theory, News & General
Topic: Are Bogleheads smarter than the bond market?
Replies: 40
Views: 4533

Re: Are Bogleheads smarter than the bond market?

i don't know about smarter but it is somewhat elementary that longer duration bonds do better when interest rates are declining and shorter duration bonds do better when rates are rising. The Fed has been pretty clear for awhile that they are bent on raising rates gradually for the next 12 - 18 mont...
by Dandy
Tue Jun 12, 2018 10:41 am
Forum: Personal Consumer Issues
Topic: At what point to buy new car for safety
Replies: 95
Views: 10253

Re: At what point to buy new car for safety

There has been a lot of discussion about new safety features and auto deaths. I don't think that is the main point. Avoiding death and injury for you and family is of course important but probably not the critical selling feature. Avoiding accidents and the repair/insurance costs/ hassles, time with...
by Dandy
Tue Jun 12, 2018 7:28 am
Forum: Personal Finance (Not Investing)
Topic: Allowance [Giving allowance to child]
Replies: 28
Views: 2410

Re: Allowance [Giving allowance to child]

As a kid I had some chores and got a small allowance. The chores were not directly tied to the allowance they were obligations for being part of the family. At an early age mom took me to the bank and opened a passbook savings account so I could deposit some of my gift money (birthdays, etc). They a...
by Dandy
Tue Jun 12, 2018 5:38 am
Forum: Personal Consumer Issues
Topic: At what point to buy new car for safety
Replies: 95
Views: 10253

Re: At what point to buy new car for safety

If you can afford it go for a safer car. Not necessarily a new car. Many 2 or 3 year old cars have nice safety features especially compared to one 10 years old. But, many new cars have amazing safety features. I think the old frugal drive the car until it dies or gets 200k miles is out of date -- fo...
by Dandy
Mon Jun 11, 2018 10:34 am
Forum: Investing - Help with Personal Investments
Topic: Investing when someone else gets all dividends
Replies: 80
Views: 5290

Re: Investing when someone else gets all dividends

Why not Wellesley Income Fund. 3.21% current yield and a nice track record. Should provide a decent level of income and some appreciation for modest growth. The current yield is comparable to a 5 yr CD. Or you could consider a CD ladder for all or some of the amount. It will provide decent income an...
by Dandy
Mon Jun 11, 2018 10:09 am
Forum: Investing - Help with Personal Investments
Topic: What to do with individuals stocks?
Replies: 15
Views: 1007

Re: What to do with individuals stocks?

Why hold on so dearly to a strategy you no longer believe in? +1 You are right to be somewhat concerned about taxes. I would exit the riskier stocks first and partially offset that with the one that is carrying capital loss. If that creates too much taxes for this year - you could wait to sell the ...
by Dandy
Mon Jun 11, 2018 10:02 am
Forum: Investing - Help with Personal Investments
Topic: Strategy for a prolonged bear market
Replies: 65
Views: 5927

Re: Strategy for a prolonged bear market

Here are two "strategies" I've used: In 2008-9 I stopped pouring more money into equities after my nest egg reduction reached a certain threshold. I waited until the market recovered to that threshold or a bit more before continuing to buy equities. Note - I was just retired in April of 2008 - not t...
by Dandy
Mon Jun 11, 2018 7:42 am
Forum: Investing - Help with Personal Investments
Topic: Annuity/Pension subsitutes for portfolio
Replies: 31
Views: 2774

Re: Annuity/Pension subsitutes for portfolio

The problem with annuities is that they are not federally guaranteed. In fact they are not strictly speaking even state guaranteed. They are backed by state guarantee funds that will be funded after the fact by assessments on other insurance companies operating in the state. And even that coverGe i...
by Dandy
Sun Jun 10, 2018 9:41 pm
Forum: Personal Finance (Not Investing)
Topic: [Net worth in retirement: How do you know when "enough is enough"?]
Replies: 15
Views: 2835

Re: [Net worth in retirement: How do you know when "enough is enough"?]

life is short, health is a gift but doesn't always last long. These are great years - you have money, relatively good health, a job you like and it seems like close family. How do you want to spend the next part of your life? Living below your means is a lifestyle that helped you get a fortune. It d...
by Dandy
Sun Jun 10, 2018 7:51 am
Forum: Investing - Theory, News & General
Topic: Rising Interest Rate Strategy
Replies: 35
Views: 4551

Re: Rising Interest Rate Strategy

Age 70 with asset preservation goal. I have my fixed income (57%) allocated roughly 1/3 no loss of principal products, 1/3 short term bond funds and 1/3 intermediate bond funds. That somewhat tempers the impact of rate changes. I don't overly fuss about making sure each category is exactly 1/3 so I ...
by Dandy
Sat Jun 09, 2018 5:28 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a house in Florida but you are hundreds of miles away
Replies: 33
Views: 2899

Re: Buying a house in Florida but you are hundreds of miles away

hey should rent a place for 6 months to a year before buying to make sure they like the location. Living in Florida isn't for everyone. +1 My parents did many many years ago because they couldn't afford to live in the NY metro area. They adapted. Many others tried but couldn't adjust. North Florida...
by Dandy
Sat Jun 09, 2018 6:57 am
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation 53 years old
Replies: 21
Views: 1848

Re: Asset Allocation 53 years old

I don't think you need that aggressive allocation to reach your goal. I would dial back especially given we are in the midst of a very long bull market. I think 60/40 would be plenty aggressive. As you age and your assets dramatically increase I think there should be a shift from growth to preservat...
by Dandy
Fri Jun 08, 2018 7:41 am
Forum: Investing - Help with Personal Investments
Topic: Bond Funds
Replies: 7
Views: 813

Re: Bond Funds

Vanguard is offering a 5yr CD at 3.3% and a 3 yr CD at 3%. These are brokerage CDs that will pay you back all your investment if you hold them to maturity. If you want to sell them early you take market risk. The Fed is likely to announce a rate increase next week which may raise these and other rat...
by Dandy
Thu Jun 07, 2018 6:20 am
Forum: Investing - Help with Personal Investments
Topic: Fixed Income investments too conservative?
Replies: 59
Views: 4225

Re: Fixed Income investments too conservative?

You seem to have more than enough so for me that argues for asset preservation vs growth/more risk. I am 70 and am in much the same situation vis a vis having enough assets. I roughly follow Dr. Bernstein's idea of having 20 years worth of draw down money in "safe" products. I have about 1/3 of my f...
by Dandy
Wed Jun 06, 2018 6:07 pm
Forum: Investing - Help with Personal Investments
Topic: Beginner retirement portfolio question.
Replies: 15
Views: 1101

Re: Beginner retirement portfolio question.

New baby, new stay at home mom, new? house, 6 months E fund, thinking of 100% stock allocation. I'd say whoa. Lots of unanticipated expenses with homes/babies, used to 2 incomes now only one and we have had an 8 year bullish equity market that lulls people into the real equity risks. It is great tha...
by Dandy
Wed Jun 06, 2018 7:55 am
Forum: Investing - Help with Personal Investments
Topic: pension
Replies: 12
Views: 1534

Re: pension

Pensions, annuities, salaries, social security etc. are income streams. They reduce the need to withdraw money to meet expenses. They allow you to take more risk in your investments if you want -- but you don't have to. No need to count them as part of your investment fixed income. Keep it simple, b...
by Dandy
Mon Jun 04, 2018 4:17 pm
Forum: Investing - Help with Personal Investments
Topic: [what to sell for] RMD
Replies: 21
Views: 1577

Re: [what to sell for] RMD

Great convenience. You can rebalance in the taxable account as well as the TIRA to minimize timing issues. How early in the year do they do this? As soon as they Dec. 31 figures can be calculated? And do they help with withholding tax? 1. I try not to use the taxable account to rebalance to avoid un...
by Dandy
Mon Jun 04, 2018 6:44 am
Forum: Personal Finance (Not Investing)
Topic: The high probability of low-probability events
Replies: 6
Views: 881

Re: The high probability of low-probability events

Interesting way of looking at risk. Recently, a town in Maryland had a 1000 year flood for the second year in a row. This year a tree limb fell on my car in my driveway causing $9500 worth of damage. I've lived in this house for 44 years. In 2008 a mortgage crisis cost me a job in a mutual fund subs...
by Dandy
Mon Jun 04, 2018 6:18 am
Forum: Investing - Help with Personal Investments
Topic: [what to sell for] RMD
Replies: 21
Views: 1577

Re: [what to sell for] RMD

I had my first RMD this year. I decided to have VG take the RMD proportionately from my several TIRA funds. In my TIRA I have a large CD ladder using VG brokerage CDs. VG will ignore non fund assets when they take a proportionate RMD. I decided that after VG takes the RMD I will review my TIRA and r...