Search found 35390 matches

by dbr
Wed May 05, 2021 1:31 pm
Forum: Personal Investments
Topic: Allocation/Importance of bonds during wealth accumulation phase?
Replies: 7
Views: 520

Re: Allocation/Importance of bonds during wealth accumulation phase?

The function of bonds in a portfolio of stocks and bonds is to reduce the uncertainty of future outcome at the price of reducing the overall range of possible wealth gained. That includes both random variation and also the impact of some drastic but unlikely failing in stocks. When and how far you ...
by dbr
Wed May 05, 2021 1:25 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited trust question
Replies: 19
Views: 1059

Re: Inherited trust question

My inclination would be to consult my own attorney for an opinion on what might be done to get the trust distributed or terminated. I would not do this with an adversarial attitude, but it is a point that the trustee operates in the interests of the trust as written and not in your interest beyond t...
by dbr
Wed May 05, 2021 12:11 pm
Forum: Personal Finance (Not Investing)
Topic: Selling house as part of estate planning
Replies: 28
Views: 1547

Re: Selling house as part of estate planning

Thanks for the replies. I should clarify that I wasn't thinking of selling my house simply to make life easier for my kids. Maybe a better question, and one that's valid whether kids are involved or not, is whether you downsized by selling your house and then renting instead of buying. Then you hav...
by dbr
Wed May 05, 2021 12:08 pm
Forum: Personal Finance (Not Investing)
Topic: Selling house as part of estate planning
Replies: 28
Views: 1547

Re: Selling house as part of estate planning

If I wasn't so nice to our daughters I would leave everything of ours in the home to be disposed of, much like the daughters left some of their stuff for years when they left the nest. :D We'll clean out our stuff after they have cleaned out their stuff that is still here. Why are my daughter's col...
by dbr
Wed May 05, 2021 11:41 am
Forum: Personal Finance (Not Investing)
Topic: Selling house as part of estate planning
Replies: 28
Views: 1547

Re: Selling house as part of estate planning

I know lots of people who sell, downsize, and clean out because it benefits them. I haven't heard of someone doing that against their actual preferences in order to relieve their children or other heirs of a burden. I do know plenty of people who have been sadly forced to give up their residence and...
by dbr
Wed May 05, 2021 11:02 am
Forum: Personal Finance (Not Investing)
Topic: Wait until 70 to claim SS. Is this always best?
Replies: 50
Views: 3217

Re: Wait until 70 to claim SS. Is this always best?

Am I thinking this through clearly, or m I missing something? You are missing that increased Social Security is a form of longevity risk reduction. In other words the breakeven calculation does not consider the importance increased inflation indexed income might have if you do outlive the breakeven...
by dbr
Wed May 05, 2021 10:34 am
Forum: Personal Finance (Not Investing)
Topic: Retirement - Spenddown planning
Replies: 34
Views: 2130

Re: Retirement - Spenddown planning

I am not sure what you have in mind for a "template" but there are a number of retirement planning programs available that manage such things as starting Social Security or other income or expenses. iORP does some tax planning. All such programs include a probabilistic assessment of future...
by dbr
Wed May 05, 2021 10:21 am
Forum: Personal Investments
Topic: Allocation/Importance of bonds during wealth accumulation phase?
Replies: 7
Views: 520

Re: Allocation/Importance of bonds during wealth accumulation phase?

The function of bonds in a portfolio of stocks and bonds is to reduce the uncertainty of future outcome at the price of reducing the overall range of possible wealth gained. That includes both random variation and also the impact of some drastic but unlikely failing in stocks. When and how far you g...
by dbr
Wed May 05, 2021 10:01 am
Forum: Personal Investments
Topic: Retirees: Distributions in down markets
Replies: 35
Views: 2303

Re: Retirees: Distributions in down markets

I do wonder what will happen to stocks when bond rates start going materially higher (a 70s-plus scenario). We seem to be in such uncharted territory, at least in our lifetimes, that I tend to get wary of going too far into equities and become more concerned about having enough safe assets for a de...
by dbr
Wed May 05, 2021 9:55 am
Forum: Personal Investments
Topic: LSI vs. DCA, but with a twist [Lump sum vs. Dollar Cost Averaging]
Replies: 20
Views: 738

Re: LSI vs. DCA, but with a twist

Very much so. I don’t know if there is statistically a better outcome, but I think there is additional removal of psychological barriers. You’re not turning cold hard cash into funds, you’re only trading one fund for another. Additionally, after a few rounds you’re well removed from when any of thi...
by dbr
Wed May 05, 2021 9:50 am
Forum: Personal Investments
Topic: Portfolio advice for my wealthy millennial west coast niece
Replies: 12
Views: 1878

Re: Portfolio advice for my wealthy millennial west coast niece

Mixing and matching all those different funds would not be my taste. What thought/desire has generated that? There is such a thing as tilting a portfolio to small cap and value or as completing the S&P 500 to make the total market. Small cap value tilting needs to be a well understood intention,...
by dbr
Wed May 05, 2021 9:45 am
Forum: Personal Investments
Topic: Portfolio advice for my wealthy millennial west coast niece
Replies: 12
Views: 1878

Re: Portfolio advice for my wealthy millennial west coast niece

Here the questions- 2) Recently sold vested IPO stock and has 500K in cash to invest sitting in a bank account. Should the money be deployed right away? It already is deployed -- in cash. If that is the asset allocation wanted, then she is already there. If it isn't the asset allocation wanted, the...
by dbr
Wed May 05, 2021 8:27 am
Forum: Personal Investments
Topic: how to hedge your portfolio against rising interest rates
Replies: 14
Views: 572

Re: how to hedge your portfolio against rising interest rates

Note, by the way, that long term investors should hope that real interest rates do go up so that bonds return some more normal amount compared to now. You would not want to hedge to somehow negate that. Inflation is an issue in the long term. Fixed income can be offset from inflation by holding TIPS...
by dbr
Wed May 05, 2021 8:05 am
Forum: Investing - Theory, News & General
Topic: Lawsuits and taxable accounts
Replies: 23
Views: 1736

Re: Lawsuits and taxable accounts

You can do some reading in a search such as this one: https://www.bing.com/search?q=garnishing%20investment%20account&qs=n&form=QBRE&sp=-1&pq=garnishing%20investment%20account&sc=1-29&sk=&cvid=11E24BD7ACE94834ACBD81EC4CDEC55F If this is a real concern you probably should ...
by dbr
Wed May 05, 2021 7:56 am
Forum: Personal Investments
Topic: how to hedge your portfolio against rising interest rates
Replies: 14
Views: 572

Re: how to hedge your portfolio against rising interest rates

Positioning a long term investment plan to account for short term investment changes is not generally needed or advised. If your situation really depends on what happens in the market in the short run you should not be in the market, holding either stocks or bonds. Do you have specific near term pla...
by dbr
Wed May 05, 2021 7:50 am
Forum: Personal Investments
Topic: Schwab vs. Vangard Question / Mortgage vs. Bond Question
Replies: 13
Views: 759

Re: Schwab vs. Vangard Question / Mortgage vs. Bond Question

Where you hold and trade assets and what company runs the funds you hold are two different things. Lots of people hold Vanguard funds or ETFs at brokers other than Vanguard. Lots of people hold funds or ETFs that are not Vanguard. It may be less likely that one holds non-Vanguard funds or ETFs at Va...
by dbr
Wed May 05, 2021 7:46 am
Forum: Personal Investments
Topic: IPS: Bond Allocation by Age (31M/29F) and Net Worth
Replies: 6
Views: 434

Re: IPS: Bond Allocation by Age (31M/29F) and Net Worth

Need to take risk depends on how much expected return you need to meet your objectives and ability to take risk depends on how able you are to cope with not getting the expected return. To quantify this requires financial modelling such as in the many available retirement planners. As a practical ma...
by dbr
Wed May 05, 2021 7:25 am
Forum: Personal Finance (Not Investing)
Topic: [Looking for accountant - (non-qualified) stock options in private company]
Replies: 1
Views: 119

Re: [Looking for accountant - (non-qualified) stock options in private company]

You could consider the two books on options and equity compensation at Fairmark: https://fairmark.com/books/ I know of an accounting firm in my neighborhood that has someone on staff who does this kind of work and has, but that is not different from any other medium sized retail accounting firm in a...
by dbr
Wed May 05, 2021 7:16 am
Forum: Investing - Theory, News & General
Topic: Calculating Performance Net of Fees
Replies: 2
Views: 262

Re: Calculating Performance Net of Fees

Fund NAV is net of all income and expenses to the fund, so published returns by definition are after fund fees. That does not offset loads or advisor fees though. Those you would have to calculate for yourself, but such costs are not really fund costs at all, just expenses you have paid on your pers...
by dbr
Wed May 05, 2021 7:10 am
Forum: Personal Investments
Topic: Question for Plan Vision customers (account linking)
Replies: 3
Views: 325

Re: Question for Plan Vision customers (account linking)

Probably this sort of operational issue is best solved by talking to customer service at Plan Vision. If that is not fast and simple it might be an indication Plan Vision is not a good service. This could be a good test.
by dbr
Tue May 04, 2021 10:00 pm
Forum: Investing - Theory, News & General
Topic: Keeping track of my investments?
Replies: 15
Views: 1191

Re: Keeping track of my investments?

I just run my own spreadsheet. There are ways to electronically update the data but I have no problem typing it in when I want to see it. A number of the entries can't be accessed automatically anyway. This includes brokerage accounts, bank accounts, retirement plan accounts, and some miscellaneous ...
by dbr
Tue May 04, 2021 9:55 pm
Forum: Personal Investments
Topic: VFIRX Vanguard Short-Term Treasury questions
Replies: 3
Views: 472

Re: VFIRX Vanguard Short-Term Treasury questions

I bought VFIRX ( Vanguard Short-Term Treasury) a few years ago. I'm a newbie and still new to investing in a taxable account. 1. How come VFIRX gives dividends, shortterm gains, and long term gains? Is that how all bonds behaves? This link shows dividends, short term and long term: https://investor...
by dbr
Tue May 04, 2021 8:02 pm
Forum: Personal Investments
Topic: investment choices
Replies: 18
Views: 878

Re: investment choices

You have around $1M and modest needs such that you live on Social Security. Therefore the question to answer is what you want from that money. With no other information than I just summed up above investing everything in stocks is not necessarily inappropriate, but the lesson is that taking all the ...
by dbr
Tue May 04, 2021 6:07 pm
Forum: Personal Investments
Topic: Safety of vanguard balanced funds with inflation and rising interest rates
Replies: 5
Views: 717

Re: Safety of vanguard balanced funds with inflation and rising interest rates

Have 2 IRAs - one Wellington and one Wellesley. Approaching 70 years old and retired. Not depending on either for income right now. Have 2-3 years living expenses in either savings or short term bond fund. Have someone with investing experience tell me recently that with inflation and likely rising...
by dbr
Tue May 04, 2021 5:46 pm
Forum: Personal Investments
Topic: Responsible advice for windfall event?
Replies: 11
Views: 1292

Re: Responsible advice for windfall event?

You can't start to address any of this until your friend understands what they want. Has there been any inkling so far of how this person wants to spend the next ten to fifty years or so of their life, depending on whether they are now 40 or now 80. As far as taxes, that is what a person with this m...
by dbr
Tue May 04, 2021 12:58 pm
Forum: Personal Investments
Topic: Retirees: Distributions in down markets
Replies: 35
Views: 2303

Re: Retirees: Distributions in down markets

If you're a retiree, do you make any adjustments to distributions in down markets? Or do you just take the distributions as planned or needed and assume things will all turn out okay in the wash, over the years? Yes, I take what I want when I want it and then watch the washing machine as time goes ...
by dbr
Tue Apr 20, 2021 2:58 pm
Forum: Personal Investments
Topic: What does "won the game stop playing" mean in practice?
Replies: 206
Views: 18214

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

I think a hang up here is that when that sort of rate is available you can suggest all sorts of things that make sense that don't make much sense now. I think 1.5% real gets you the infamous 4% withdrawal rate.. SWR is for probabilistic strategies. LMP is not a probabilistic strategy. I don't know ...
by dbr
Tue Apr 20, 2021 2:52 pm
Forum: Personal Investments
Topic: What does "won the game stop playing" mean in practice?
Replies: 206
Views: 18214

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

I'm stating a fact, not making a judgement. It's not a fact, it's a hypothetical without empirical applicability. For practical purposes, it's impossible to get the consumption / savings balance exactly right. The real-world choice is between undersaving, then going broke in retirement. Or oversavi...
by dbr
Tue Apr 20, 2021 2:51 pm
Forum: Personal Investments
Topic: Sanity check on portfolio
Replies: 8
Views: 1051

Re: Sanity check on portfolio

2. What you are missing is that it doesn't seem you have any idea why you are choosing that portfolio except that it is one in a list with some other portfolios that all have roughly similar behavior as far as you can tell for the time being. (For the given standard deviations of annual return thos...
by dbr
Tue Apr 20, 2021 2:44 pm
Forum: Personal Investments
Topic: What does "won the game stop playing" mean in practice?
Replies: 206
Views: 18214

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

watchnerd wrote: Tue Apr 20, 2021 2:38 pm
dbr wrote: Tue Apr 20, 2021 1:51 pm and saved more than they needed to.
I thought living beneath your means was a good thing on Boglehead world?

Now it's bad?

And I thought deferred consumption was just that....deferred.

i.e. there is optionality to spend later
I'm stating a fact, not making a judgement.
by dbr
Tue Apr 20, 2021 2:43 pm
Forum: Personal Investments
Topic: What does "won the game stop playing" mean in practice?
Replies: 206
Views: 18214

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

At 2% real interest such a ladder pays back 4.4% real. That would be awesome. But it does not exist at present. I think a hang up here is that when that sort of rate is available you can suggest all sorts of things that make sense that don't make much sense now. I think 1.5% real gets you the infam...
by dbr
Tue Apr 20, 2021 2:36 pm
Forum: Investing - Theory, News & General
Topic: "Mortgage is a negative bond" - please help me understand
Replies: 336
Views: 18205

Re: "Mortage is a negative bond" - please help me understand

Shouldn’t it be: 1) 60k in TSM index fund and 40k in a Bond fund and a $40k house is the same thing as having 2) 60k in TSM index fund and 80k in a Bond fund and a mortgage balance of 40k (on a house worth $40k). I guess I’m hung up on the term “negative”. If it’s a negative bond then you need to a...
by dbr
Tue Apr 20, 2021 2:33 pm
Forum: Personal Investments
Topic: For "bucket" strategy...WTH do I use for my second "bucket"?
Replies: 22
Views: 3262

Re: For "bucket" strategy...WTH do I use for my second "bucket"?

If your portfolio is continually rebalanced to a set overall asset allocation, then you don't have buckets. What you have is an asset allocation. That is true even if you have mentally divided up the assets into what you are calling buckets. It wouldn't even make sense to say you withdrew "from...
by dbr
Tue Apr 20, 2021 1:59 pm
Forum: Personal Investments
Topic: Can someone explain wash sales to me?
Replies: 2
Views: 313

Re: Can someone explain wash sales to me?

If you buy replacement shares before the sale as well as after, then you can create a wash sale. But, the extent of the wash is only by how many replacement shares you buy. You do not disqualify taking a tax loss on the entire sale. Also, the effect of a wash sale is to adjust your cost basis so tha...
by dbr
Tue Apr 20, 2021 1:51 pm
Forum: Personal Investments
Topic: What does "won the game stop playing" mean in practice?
Replies: 206
Views: 18214

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

If someone has both a liability matching portfolio and a risk portfolio. And If the LMP is enough to cover their expenses so that they don't need to touch the RP, does the RP then avoid sequence of return risk? No, an LMP is specifically intended to not have sequence of returns risk. An example is ...
by dbr
Tue Apr 20, 2021 11:59 am
Forum: Personal Finance (Not Investing)
Topic: Personal liability for filing complaint for financial adviser?
Replies: 51
Views: 4365

Re: Personal liability for filing complaint for financial adviser?

OP, if you are really concerned about personal liability, be careful what you are posting in online reviews and online forums. If enough specific information is included (like names, screen grabs, holdings, etc.), it may be easier to connect and trace them back to the source than you think. So cons...
by dbr
Tue Apr 20, 2021 11:55 am
Forum: Personal Investments
Topic: Need portfolio guidance
Replies: 12
Views: 1459

Re: Need portfolio guidance

The first assessment is a simple 4% of assets is what you need to support your planned spending. That number is $45k less about $25k in SS or a need of $20k/year. You have $2M more or less and 4% of that is $80k, so you have far more money than you need or want. The logical next step is to ask what ...
by dbr
Tue Apr 20, 2021 11:01 am
Forum: Personal Investments
Topic: Wading Through The Fixed Income Maze
Replies: 18
Views: 1393

Re: Wading Through The Fixed Income Maze

As to Social Security, I am not sure what you mean by "This fixed income in addition to our SS would be approximately 25X expenses." A better assessment of how your portfolio and its allocation matches what you want to spend would come from stating your expected rate of annual withdrawals...
by dbr
Tue Apr 20, 2021 10:48 am
Forum: Personal Investments
Topic: Wading Through The Fixed Income Maze
Replies: 18
Views: 1393

Re: Wading Through The Fixed Income Maze

Please take this as humor, but humor with a point, from the old Bob Newhart show: https://www.youtube.com/watch?v=4BjKS1-vjPs That seems incredibly apt to this forum. It sure does. Maybe we can get it added as a sticky, or put in the wiki... :happy Regards, Yes, thanks to David Jay, and the other o...
by dbr
Tue Apr 20, 2021 10:41 am
Forum: Personal Investments
Topic: Investment Help - Opening Taxable
Replies: 3
Views: 407

Re: Investment Help - Opening Taxable

1. For the taxable account, my plan is to invest in US total stock market. Does this make sense? Absolutely 2. I like the simplicity of the retirement funds in my tax advantaged space, but I recognize that with my current setup and after I open the taxable account as planned, I will be greater than...
by dbr
Tue Apr 20, 2021 10:28 am
Forum: Personal Investments
Topic: Wading Through The Fixed Income Maze
Replies: 18
Views: 1393

Re: Wading Through The Fixed Income Maze

David Jay wrote: Tue Apr 20, 2021 9:52 am
Please take this as humor, but humor with a point, from the old Bob Newhart show: https://www.youtube.com/watch?v=4BjKS1-vjPs
That seems incredibly apt to this forum.
by dbr
Tue Apr 20, 2021 9:41 am
Forum: Personal Investments
Topic: Help with selecting 401(k) funds
Replies: 36
Views: 1927

Re: Help with selecting 401(k) funds

Thanks for the reply. That was my original thought as well, but as I looked through some of the actively managed funds I began wondering if some of them were worth the higher expense ratio. For example, HACAX (.66%) is a large growth fund with a 10Y total return of 18% (compared to 14% for VFIAX). ...
by dbr
Tue Apr 20, 2021 9:24 am
Forum: Personal Investments
Topic: Help with selecting 401(k) funds
Replies: 36
Views: 1927

Re: Help with selecting 401(k) funds

It should also be noted that I have access to VFIAX - Vanguard 500 Index (.04%) and VBIAX - Vanguard Balanced Index Fund Adm (.07%), but 0% was alloted to these under the "aggressive" approach I selected back when I started this job. My employer does a profit sharing system and contribute...
by dbr
Tue Apr 20, 2021 9:09 am
Forum: Personal Investments
Topic: Wading Through The Fixed Income Maze
Replies: 18
Views: 1393

Re: Wading Through The Fixed Income Maze

As to Social Security, I am not sure what you mean by "This fixed income in addition to our SS would be approximately 25X expenses." A better assessment of how your portfolio and its allocation matches what you want to spend would come from stating your expected rate of annual withdrawals...
by dbr
Tue Apr 20, 2021 9:07 am
Forum: Personal Investments
Topic: Sanity check on portfolio
Replies: 8
Views: 1051

Re: Sanity check on portfolio

1. Does this seem like a sane allocation? Anything I'm missing? 1. Most likely no harm done (but see below) 2. What you are missing is that it doesn't seem you have any idea why you are choosing that portfolio except that it is one in a list with some other portfolios that all have roughly similar ...
by dbr
Tue Apr 20, 2021 8:47 am
Forum: Personal Investments
Topic: Wading Through The Fixed Income Maze
Replies: 18
Views: 1393

Re: Wading Through The Fixed Income Maze

Amen to the above by David Jay. As far as cash management, my view is that this does not come from investment concerns but comes from practical concerns of cash flow. These are details specific to the magnitude and timing of what one spends and how cash income appears for that investor. Most people ...
by dbr
Tue Apr 20, 2021 8:28 am
Forum: Personal Investments
Topic: Wading Through The Fixed Income Maze
Replies: 18
Views: 1393

Re: Wading Through The Fixed Income Maze

You can remove a lot of the angst from bond holdings if you recognize that there are far more choices in bond offerings than there are reasons to select among them. There is a reason total bond funds are recommended for the three fund portfolio, the reason being that it does the job and suggests tha...
by dbr
Tue Apr 20, 2021 8:09 am
Forum: Personal Investments
Topic: For "bucket" strategy...WTH do I use for my second "bucket"?
Replies: 22
Views: 3262

Re: For "bucket" strategy...WTH do I use for my second "bucket"?

As far as I can see the essence of a buckets strategy is that you end up with a variable asset allocation and need a rule to time how the asset allocation varies. The scheme can get quite complicated if it attempts to ratchet down through three levels of risk. If want you want is to insulate yoursel...
by dbr
Tue Apr 20, 2021 7:45 am
Forum: Personal Investments
Topic: For "bucket" strategy...WTH do I use for my second "bucket"?
Replies: 22
Views: 3262

Re: For "bucket" strategy...WTH do I use for my second "bucket"?

"medium risk investments where I make some interest but it still hedges against a market downturn" sounds to me like an intermediate term bond fund such as total bond market. You wouldn't want stocks there because that is bucket 3. There are lots of blogs about bucket schemes. What do they...
by dbr
Tue Apr 20, 2021 7:35 am
Forum: Personal Investments
Topic: How fast to readjust AA
Replies: 14
Views: 1224

Re: How fast to readjust AA

If you don't move quickly then you extend the time over which you are exposed to the risk and return of your company stock holding. You get to choose if that is what you want. hint: That is probably not what you want. As the previous poster mentions only some tax consideration would affect this. The...