Search found 36360 matches

by dbr
Mon Aug 02, 2021 11:22 am
Forum: Personal Investments
Topic: Need help with TIPS explanation
Replies: 1
Views: 134

Re: Need help with TIPS explanation

First understand that the negative yield quoted is real yield. The real yield on much fixed income is equally negative. You will lose real dollars on about any fixed income investment today. Real yield can be negative from time to time. So, yes, if there is inflation greater than 1.5%, then the nomi...
by dbr
Mon Aug 02, 2021 8:53 am
Forum: Personal Investments
Topic: What type of account to open for my niece as a gift?
Replies: 8
Views: 470

Re: What type of account to open for my niece as a gift?

Either you misunderstood or the CSR is an uninformed idiot. The actual situation is that there is a 15K exclusion before you have to file a gift tax return. After that there is a multimillion dollar lifetime exemption before any tax has to be paid. There can also be state gift taxes with a differen...
by dbr
Mon Aug 02, 2021 8:46 am
Forum: Personal Investments
Topic: How do you figure whether you have 25x, 30x expenses ?
Replies: 6
Views: 1096

Re: How do you figure whether you have 25x, 30x expenses ?

You can't because there are income sources that start at different times. Among other things the planners like FireCalc are designed to accommodate the various scenarios that describe real people having real retirements. NNx is not a plan but just a very rough idea of what is involved. Retirement mo...
by dbr
Mon Aug 02, 2021 8:39 am
Forum: Personal Investments
Topic: What type of account to open for my niece as a gift?
Replies: 8
Views: 470

Re: What type of account to open for my niece as a gift?

Thanks for your reply! Fidelity customer care told me that you can only transfer 15K per year as a gift, the rest needs to pay taxes. Either you misunderstood or the CSR is an uninformed idiot. The actual situation is that there is a 15K exclusion before you have to file a gift tax return. After th...
by dbr
Sun Aug 01, 2021 3:43 pm
Forum: Investing - Theory, News & General
Topic: what is the purpose of bonds as investment? They suck, no?
Replies: 55
Views: 4616

Re: what is the purpose of bonds as investment? They suck, no?

Is it reasonable to expect that bonds will beat the inflation by 1-2% for long-term say 30 years? No, afraid not. Historically, they have more often than not but not always. https://imgur.com/fFPLsdI.png I would take that as a yes answer to the question. If the question were "Is it reasonable ...
by dbr
Sun Aug 01, 2021 12:47 pm
Forum: Investing - Theory, News & General
Topic: Is there value in this basic calculation?
Replies: 25
Views: 1944

Re: Is there value in this basic calculation?

We may be talking past each other but you have to do a weighted average not a straight average. I think I get it now. For example, if I had 2 shares (at $1 each) of Company X, and they went up 50%, and I had 1000 shares ($1 each) of Company Z that went up 10%, the average increase of the 2 is not 3...
by dbr
Sun Aug 01, 2021 9:58 am
Forum: Personal Investments
Topic: Nearly all fixed income in cash: Wrong decision?
Replies: 57
Views: 4903

Re: Nearly all fixed income in cash: Wrong decision?

Thanks for all the responses so far. A few replies: I think it depends on what your goal is for this portion of your portfolio. Are you looking for a stream of fixed income? To dampen the volatility of an equity portfolio? To hedge against inflation? I think cash is a fine way to do reduce volatili...
by dbr
Sun Aug 01, 2021 9:35 am
Forum: Personal Investments
Topic: Nearly all fixed income in cash: Wrong decision?
Replies: 57
Views: 4903

Re: Nearly all fixed income in cash: Wrong decision?

It is probably better to discuss these questions by defining one's objectives and then finding what asset allocations best serve those objectives. For example there is no question that as long as the system of capital enterprise is not destroyed by catastrophic events such as war, disintegration of ...
by dbr
Sun Aug 01, 2021 9:12 am
Forum: Investing - Theory, News & General
Topic: what is the purpose of bonds as investment? They suck, no?
Replies: 55
Views: 4616

Re: what is the purpose of bonds as investment? They suck, no?

Everywhere I look I am being told to have a large portion of money in bonds (40% or more). I am trying to figure why, other than just having spending money if the market crashes and you don't want to redeem shares at that point. The return on bonds are and have been historically very lame, barely k...
by dbr
Sun Aug 01, 2021 8:27 am
Forum: Investing - Theory, News & General
Topic: what is the purpose of bonds as investment? They suck, no?
Replies: 55
Views: 4616

Re: what is the purpose of bonds as investment? They suck, no?

Suck is not a property that meaningfully applies to investments. It is more productive to discuss the properties that matter for investments.
by dbr
Sun Aug 01, 2021 8:14 am
Forum: Investing - Theory, News & General
Topic: What is the process for a book to make it onto the Bogleheads approved reading list?
Replies: 10
Views: 912

Re: What is the process for a book to make it onto the Bogleheads approved reading list?

I don't think there is an approved reading list. There is a list of suggested reading in the Wiki that presumably got there because posters that wanted to go to the trouble created the list. I would guess that should someone edit that list to add something that a lot of people disagreed with then th...
by dbr
Sun Aug 01, 2021 7:52 am
Forum: Personal Investments
Topic: Holding Cash
Replies: 7
Views: 782

Re: Holding Cash

There are various options any of which on a given day offer a little more interest than something else. Right now there are no options that offer more than near zero interest and loss to inflation. Sometimes you get a bowl of cherries and sometimes the pits, and there is nothing you can do about it....
by dbr
Sat Jul 31, 2021 5:25 pm
Forum: Personal Investments
Topic: Who do my parents need to see to get their retirement in order?
Replies: 27
Views: 3280

Re: Who do my parents need to see to get their retirement in order?

To know if they have enough and aren’t likely to outlive their savings, your parents need to know their expected expenses in retirement. The link to the Fidelity planner from Backpacker61 can help with that. Exactly The whole point of all the planners, and Fidelity is pretty good, is to straighten ...
by dbr
Sat Jul 31, 2021 5:09 pm
Forum: Personal Investments
Topic: Which of these portfolios is best? (more int'l but higher fees?)
Replies: 6
Views: 575

Re: Which of these portfolios is best? (more int'l but higher fees?)

Those portfolios are not meaningfully different.
by dbr
Sat Jul 31, 2021 5:06 pm
Forum: Personal Investments
Topic: Nearly all fixed income in cash: Wrong decision?
Replies: 57
Views: 4903

Re: Nearly all fixed income in cash: Wrong decision?

I don't think your question is whether or not cash might or should be the choice for your fixed income allocation. It would seem that the question is whether or not it is possible to determine that at a certain time (now) the choice should be cash while at another time it should be bonds with some d...
by dbr
Sat Jul 31, 2021 4:25 pm
Forum: Personal Investments
Topic: Set up ROTH's for adult kids without them knowing
Replies: 45
Views: 3088

Re: Set up ROTH's for adult kids without them knowing

Our first line financial contribution to our children was making sure they got the education they needed and could use without having to go into debt for it. How soon they might get more support as middle aged adults is something we can easily discuss. The idea that there might be money that is alre...
by dbr
Sat Jul 31, 2021 4:21 pm
Forum: Investing - Theory, News & General
Topic: How to implement a bond floor?
Replies: 28
Views: 2452

Re: How to implement a bond floor?

I don't think there is a practical difference between a bond "floor" and a bond "allocation." It is just thought about differently For purposes of supplying retirement income the essence of the problem is an income floor. That means a holistic model involving annuities, pensions,...
by dbr
Sat Jul 31, 2021 2:45 pm
Forum: Personal Investments
Topic: Exchanging Capital Group American funds for VG funds
Replies: 3
Views: 343

Re: Exchanging Capital Group American funds for VG funds

Sounds fine. You said accounts and then "a" money market fund. If you are talking about retirement accounts there are presumably several and the transactions have to be kept in each account, meaning more than one settlement fund and being sure the sales don't also trigger a distribution. F...
by dbr
Sat Jul 31, 2021 2:36 pm
Forum: Personal Investments
Topic: Set up ROTH's for adult kids without them knowing
Replies: 45
Views: 3088

Re: Set up ROTH's for adult kids without them knowing

I don't know anything about blind trusts. Can anyone tell me more about this? Not blind trusts per se but this book may be helpful, or not: https://www.amazon.com/Beyond-Grave-Revised-Updated-Children/dp/0062336223/ref=sr_1_1?dchild=1&keywords=beyond+the+grave+book&qid=1627760088&sr=8-1...
by dbr
Sat Jul 31, 2021 2:28 pm
Forum: Personal Investments
Topic: Set up ROTH's for adult kids without them knowing
Replies: 45
Views: 3088

Re: Set up ROTH's for adult kids without them knowing

JMK909er wrote: Sat Jul 31, 2021 2:23 pm OK, how can I set up investment for them for later in life? I don't want them to touch it for many years.
See an estate attorney regarding trusts and wills. Do not DIY this.
by dbr
Sat Jul 31, 2021 2:22 pm
Forum: Personal Investments
Topic: [Worthy Bonds]
Replies: 11
Views: 716

Re: [Worthy Bonds]

Thanks, that discussion is what I am looking for. Somehow when I searched the board, I could not find them related to "worthbonds" keyword. It looks like lots of investors don't like it due to BlackBox nature. But for persons like me, looking for more returns than FDIC with higher risk to...
by dbr
Sat Jul 31, 2021 2:14 pm
Forum: Personal Investments
Topic: What does "won the game stop playing" mean in practice?
Replies: 230
Views: 25277

Re: What does "won the game stop playing" mean in practice?

Everyone needs to read and understand this paper. I didn't myself find anything I wasn't pretty clear on already. It should be noted that this paper is not a how to retire paper and doesn't actually tell anyone what to do. Here is my own example of what happens at the end of Pfau's paper. tl:dr I am...
by dbr
Sat Jul 31, 2021 12:50 pm
Forum: Personal Investments
Topic: What does "won the game stop playing" mean in practice?
Replies: 230
Views: 25277

Re: What does "won the game stop playing" mean in practice?

... Some author I read (it might have been Kitces, or maybe Bernstein himself), described the spectrum as having "safety first" at one end and "probabilistic portfolios" / Monte Carlos at the other. Side note: maybe you're thinking of Wade Pfau and Jeremy Cooper who had a paper ...
by dbr
Sat Jul 31, 2021 12:03 pm
Forum: Personal Investments
Topic: [Worthy Bonds]
Replies: 11
Views: 716

Re: WorthBonds

There is no guarantee you will get 5%. There is no guarantee that you won't lose part of your investment. You have zero information regarding the probability of either of those failures except that the risk is not negligible because there are no 5% 36 month investments today that do not have meaning...
by dbr
Sat Jul 31, 2021 10:34 am
Forum: Personal Consumer Issues
Topic: EV charging solutions in dense urban environs
Replies: 67
Views: 3397

Re: EV charging solutions in dense urban environs

Our situation is similar to yours. I consider an EV totally not feasible unless it becomes possible to install an underground cable and charging outlet in the city owned strip next to the curb. See here: http://projectgreenhome.org/ev.html Note conditions included allowing public access to anyone to...
by dbr
Sat Jul 31, 2021 10:29 am
Forum: Personal Investments
Topic: Advice on complicated retirement plan
Replies: 7
Views: 934

Re: Advice on complicated retirement plan

At your age with thoughts of early retirement it is not too soon to look at retirement planners like FireCalc, and there are others. This will give you a feel for the data to consider and the nature of the answer. FireCalc was written over at the early retirement forum as an approach to analyzing th...
by dbr
Sat Jul 31, 2021 8:35 am
Forum: Personal Investments
Topic: Where to Park Down Payment?
Replies: 9
Views: 988

Re: Where to Park Down Payment?

We anticipate buying another home in 1 year. Money needs to be seasoned if you'll eventually finance a new home, so if its shifted to a different account to purchase securities, then needs to be switched back to a different account to season, you'll lose at least 60 days. https://bluesteelrealestat...
by dbr
Sat Jul 31, 2021 8:34 am
Forum: Personal Investments
Topic: Portfolio questions for 68 year old retiree
Replies: 12
Views: 1840

Re: Portfolio questions for 68 year old retiree

The real question to be answered is what objective do you have for your investments and your real estate? Do you mean to maximize total worth of the investments or to maximize monthly withdrawals or payments? Is your pension inflation indexed or provided with a COLA? COLA Thank you Right. When a pe...
by dbr
Sat Jul 31, 2021 8:05 am
Forum: Personal Investments
Topic: Portfolio questions for 68 year old retiree
Replies: 12
Views: 1840

Re: Portfolio questions for 68 year old retiree

You could avoid worrying about bonds by just investing in 100% stocks. Inevitably there will be cash slushing around as part of the waxing and waning of cash flow, but each 1% of $1M is already $10,000 sitting somewhere. The real question to be answered is what objective do you have for your investm...
by dbr
Sat Jul 31, 2021 7:56 am
Forum: Personal Investments
Topic: Where to Park Down Payment?
Replies: 9
Views: 988

Re: Where to Park Down Payment?

What are you trying to do that savings accounts or short term CDs at a couple of banks would not meet your objective? Thinking you can somehow make a bunch of money on this is probably a mistake.

The purchase limit on I bonds is $10K/year, so forget that, and it doesn't make any difference anyway.
by dbr
Sat Jul 31, 2021 7:23 am
Forum: Personal Investments
Topic: When lump sum in hot market think of TLH as a little downside protection?
Replies: 18
Views: 1720

Re: When lump sum in hot market think of TLH as a little downside protection?

I think if you need to rationalize that TLH will somehow make an otherwise intolerable loss somehow possible to bear then your whole plan is off base and needs to be rethought. Most likely you are planning an asset allocation that is wrong for you or you really have not thought through the implicati...
by dbr
Fri Jul 30, 2021 4:05 pm
Forum: Personal Investments
Topic: Where to hold taxable funds while deciding on longer term investments, FIPDX ?
Replies: 6
Views: 536

Re: Where to hold taxable funds while deciding on longer term investments, FIPDX ?

Inflation adjustment is a long term benefit because the damage done by inflation comes from compounding over time. It should not be a significant criterion in the short run. In the same way return is a long term benefit that is effective when compounded over long times. Volatility due to longer dura...
by dbr
Fri Jul 30, 2021 3:45 pm
Forum: Personal Investments
Topic: Calculator: Taxes owed in retirement
Replies: 14
Views: 1629

Re: Calculator: Taxes owed in retirement

The problem is not to just calculate the tax but to set up a data set of personal tax items by year from retirement to death. In principle a spreadsheet can handle a problem like that with entries for all the inputs and formulas to compute the taxes year by year. Obviously there is a lot of estimati...
by dbr
Fri Jul 30, 2021 12:05 pm
Forum: Personal Investments
Topic: Portfolio questions for 68 year old retiree
Replies: 12
Views: 1840

Re: Portfolio questions for 68 year old retiree

The default suggestion (not a "should") for a bond fund would be a total stock market index fund. But at 90/10 there are dozens of options that aren't going to be much different in outcome as far as you can tell ex ante. There is some academic theory that the best pairing for a high stock ...
by dbr
Fri Jul 30, 2021 12:00 pm
Forum: Personal Investments
Topic: Calculator: Taxes owed in retirement
Replies: 14
Views: 1629

Re: Calculator: Taxes owed in retirement

I have done some future tax estimating using spreadsheets. Probably the "best" answer out there is to do more work on your spreadsheet to allow for cost basis to be entered and capital gain to be estimated a little better. You could also run some estimates on how much it would matter anyway,
by dbr
Fri Jul 30, 2021 11:24 am
Forum: Personal Finance (Not Investing)
Topic: What are your “rules” for how much real estate you’re comfortable buying?
Replies: 76
Views: 7521

Re: What are your “rules” for how much real estate you’re comfortable buying?

My parents bought in 1963 and sold around 1990. Before that they had owned homes elsewhere from 1943-1963. They used the proceeds to rent from 1990 to 2007. I sure don't see some kind of market timing or "bubble" in this. It is an example of scenarios for long term financial situations whe...
by dbr
Fri Jul 30, 2021 9:32 am
Forum: Personal Investments
Topic: Reply to Relationship Manager?
Replies: 41
Views: 3745

Re: Reply to Relationship Manager?

The wife and I chatted with our Fidelity relationship manager this morning. His assistant calls roughly every 6 months to setup a call. Our manager complimented our low cost, tax efficient portfolio and to my surprise (and my wife’s delight) discussed spending more of it (still in accumulation phas...
by dbr
Fri Jul 30, 2021 9:19 am
Forum: Personal Investments
Topic: Creating a portfolio as we retire
Replies: 14
Views: 2153

Re: Creating a portfolio as we retire

by delamer » Thu Jul 29, 2021 10:36 am One aspect of retirement planning that should be considered is what happens to the survivor’s income (and expenses) when one spouse dies. The survivor will receive less Social Security income and the pension amount could be affected. Thank you--I have consider...
by dbr
Fri Jul 30, 2021 9:12 am
Forum: Investing - Theory, News & General
Topic: Own actual bonds, vs Own bond fund
Replies: 19
Views: 1756

Re: Own actual bonds, vs Own bond fund

The baseline answer is that excepting Treasuries individual bonds are not diversified and the individual investor is likely to be disadvantaged buying and selling at too high costs.
by dbr
Fri Jul 30, 2021 9:09 am
Forum: Personal Investments
Topic: Reply to Relationship Manager?
Replies: 41
Views: 3745

Re: Reply to Relationship Manager?

What kind of things would this relationship manager try to sell me? Why not ask them? Maybe a new 0.1% AUM fee plan to invest your money in a 3-fund portfolio that does tax-loss harvesting for you? I like this idea. Why can't someone offer this? Probably because tax loss harvesting is not independe...
by dbr
Thu Jul 29, 2021 6:51 pm
Forum: Investing - Theory, News & General
Topic: Is there value in this basic calculation?
Replies: 25
Views: 1944

Re: Is there value in this basic calculation?

You can, of course, just average the % returns and it would be an average over data elements of a list of stocks. It would not be the return of a portfolio of a certain allocation of all those holdings. If the statistic of interest is what is the average return of stocks like those one could do as t...
by dbr
Thu Jul 29, 2021 6:47 pm
Forum: Personal Finance (Not Investing)
Topic: What are your “rules” for how much real estate you’re comfortable buying?
Replies: 76
Views: 7521

Re: What are your “rules” for how much real estate you’re comfortable buying?

Buy nothing more than what you need. Rent anything else. Real estate is a consumption item, I treat it as such. My parents lived many years owning a home in a HCOL area. They sold, put the proceeds in T-bills, and used that to both rent elsewhere and help pay daily expenses the rest of their lives ...
by dbr
Thu Jul 29, 2021 5:01 pm
Forum: Investing - Theory, News & General
Topic: Splitting VASGX into Two Fund Portfolio - No Bond and Bond Varieties for Tax-Free Growth
Replies: 2
Views: 223

Re: Splitting VASGX into Two Fund Portfolio - No Bond and Bond Varieties for Tax-Free Growth

At a certain point it might be simpler to just hold individual stock and bond funds rather than a mix-up of blended funds. Rebalancing is not that big a deal in tax deferred accounts.
by dbr
Thu Jul 29, 2021 3:39 pm
Forum: Personal Consumer Issues
Topic: Delta "Comfort Seat" Selection
Replies: 21
Views: 2522

Re: Delta "Comfort Seat" Selection

Delta Comfort+ essentially means getting a few (3"") more legroom. For some people this is a godsend. Some people couldn't care less. I don't hesitate to pay up for it if I am otherwise on an international flight in main cabin. Delta also tries to guard the overhead bin space for this par...
by dbr
Thu Jul 29, 2021 3:33 pm
Forum: Personal Finance (Not Investing)
Topic: What are your “rules” for how much real estate you’re comfortable buying?
Replies: 76
Views: 7521

Re: What are your “rules” for how much real estate you’re comfortable buying?

Buy nothing more than what you need. Rent anything else. Real estate is a consumption item, I treat it as such. My parents lived many years owning a home in a HCOL area. They sold, put the proceeds in T-bills, and used that to both rent elsewhere and help pay daily expenses the rest of their lives ...
by dbr
Thu Jul 29, 2021 3:23 pm
Forum: Investing - Theory, News & General
Topic: Are these wash sales?
Replies: 27
Views: 1115

Re: Are these wash sales?

A wash sale for not exactly identical securities only becomes one when the IRS says it is and backs that up in court. They have not been attempting to sort that out and there is no sign they are going to start any time soon. What difference there is between tax reporting that is never vetted by the ...
by dbr
Thu Jul 29, 2021 3:09 pm
Forum: Personal Consumer Issues
Topic: Delta "Comfort Seat" Selection
Replies: 21
Views: 2522

Re: Delta "Comfort Seat" Selection

Delta Comfort+ essentially means getting a few (3"") more legroom. For some people this is a godsend. Some people couldn't care less. I don't hesitate to pay up for it if I am otherwise on an international flight in main cabin. Delta also tries to guard the overhead bin space for this part...
by dbr
Thu Jul 29, 2021 2:59 pm
Forum: Personal Investments
Topic: Personal Advisor Service
Replies: 13
Views: 991

Re: Personal Advisor Service

Do you agree that I should cancel the PAS service and rebalance to the percentages above on a quarterly basis? Is this something I could do by calling any VG representative as our portfolio is $1.7m? I can't say you should or shouldn't cancel the service, but I would recommend that rebalancing need...
by dbr
Thu Jul 29, 2021 2:47 pm
Forum: Investing - Theory, News & General
Topic: Is there value in this basic calculation?
Replies: 25
Views: 1944

Re: Is there value in this basic calculation?

Unless you own the exact same dollar amount of each stock and you continue to own the same dollar amount of each, this is bad math. If you own $10,000 of Facebook and it goes up 5% and you own $100,000 of ExxonMobile, and it goes up 1%, your portfolio did not increase by 3%. What if I am measuring ...
by dbr
Thu Jul 29, 2021 12:06 pm
Forum: Personal Finance (Not Investing)
Topic: What are your “rules” for how much real estate you’re comfortable buying?
Replies: 76
Views: 7521

Re: What are your “rules” for how much real estate you’re comfortable buying?

I realize the answer may differ greatly for people who are younger and buying a first house vs older. Mostly I am looking for perspectives from people who are a bit older and have established a fairly large asset base. It seems there’s always a vacation home or larger house to buy, although I reali...