Search found 36329 matches

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: 4
Views: 229

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: 11
Views: 778

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: 3
Views: 419

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: 11
Views: 778

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: 71
Views: 6340

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: 37
Views: 3294

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: 11
Views: 1464

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: 10
Views: 640

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: 37
Views: 3294

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: 22
Views: 1640

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: 71
Views: 6340

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: 212

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: 9
Views: 1074

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: 71
Views: 6340

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: 1029

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: 9
Views: 1074

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: 947

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: 22
Views: 1640

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: 71
Views: 6340

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...
by dbr
Thu Jul 29, 2021 11:11 am
Forum: Personal Investments
Topic: Question about creating brokerage account through my 401k
Replies: 9
Views: 452

Re: Question about creating brokerage account through my 401k

I've never heard of this, and wonder what the downsides are to a self directed brokerage. Seems like so many more options with the same tax advantage. :confused There can be some fees and some transaction costs, so you have to control that. My plan costs $10/month. It also can happen that if your 4...
by dbr
Thu Jul 29, 2021 9:41 am
Forum: Personal Investments
Topic: Question about creating brokerage account through my 401k
Replies: 9
Views: 452

Re: Question about creating brokerage account through my 401k

98% of my 401 is in the directed brokerage at Schwab holding Vanguard and Fidelity funds. The cost are utterly negligible in my case as I have a fairly large portfolio and trade very little. If there is a transaction fee for what you want and a cost on the option, you will have to consider your situ...
by dbr
Thu Jul 29, 2021 9:35 am
Forum: Personal Investments
Topic: Personal Advisor Service
Replies: 13
Views: 947

Re: Personal Advisor Service

All of our current taxable distributions are taken from my accounts as my IRA represents 70% of our portfolio. I also want to reduce my projected RMD as much as possible when required to start my RMD in the year 2028. You should ask this of the advisor and see what the advice is. This sort of thing...
by dbr
Thu Jul 29, 2021 9:26 am
Forum: Personal Consumer Issues
Topic: which brand auto battery
Replies: 58
Views: 2958

Re: which brand auto battery

A different battery spec to examine is Reserve Capacity.
by dbr
Thu Jul 29, 2021 9:22 am
Forum: Personal Investments
Topic: New Investor Returns
Replies: 24
Views: 1527

Re: New Investor Returns

An essential fundamental concept about investing is that returns are highly variable both in the short run and in the long run. Returns can also have longer run "secular" trends and historical shifts. Also see that "time diversification" is a fallacy. Thinking that one can or is ...
by dbr
Thu Jul 29, 2021 9:15 am
Forum: Personal Consumer Issues
Topic: which brand auto battery
Replies: 58
Views: 2958

Re: which brand auto battery

What might be helpful is to look at possible specs and capacities that can be used in your vehicle. OEM spec might especially be a "small economy" size for your vehicle and better choices are available not because the battery is "better" but because it may be more robust for your...
by dbr
Thu Jul 29, 2021 8:35 am
Forum: Personal Consumer Issues
Topic: which brand auto battery
Replies: 58
Views: 2958

Re: which brand auto battery

If you want options in batteries you could investigate different technology such as AGM rather than lead plate.
by dbr
Thu Jul 29, 2021 8:26 am
Forum: Investing - Theory, News & General
Topic: Is there value in this basic calculation?
Replies: 22
Views: 1640

Re: Is there value in this basic calculation?

I would love to be a three-funder all the way, but a recent inheritance from a taxable account now makes that … difficult. There are now 27 individual stocks in my taxable account. Selling them to try to create a 3-fund indexed portfolio would trigger too many gains (not a problem I’m complaining a...
by dbr
Fri Jul 23, 2021 3:19 pm
Forum: Investing - Theory, News & General
Topic: Which TIPS offer the best inflation protection?
Replies: 29
Views: 2738

Re: Which TIPS offer the best inflation protection?

As for "expected inflation", I think that would already be priced into the TIPS, no? Even if the actual mark up in price by the Treasury did not occur yet, the market would already have discounted that. So if I were to purchase those TIPS now, then the mark up due to expected inflation wo...
by dbr
Fri Jul 23, 2021 11:57 am
Forum: Personal Investments
Topic: If you had No Significant Pension or SS what asset allocation would you chose for a 30 year time period?
Replies: 20
Views: 1311

Re: If you had No Significant Pension or SS what asset allocation would you chose for a 30 year time period?

If you mean you are retired and you are planning to take withdrawals from that asset allocation for an estimated 30 years then here are some generalizations: 1. How much you can successfully spend and how much will be left if dominated by the luck of history in the particular period in question. Thi...
by dbr
Fri Jul 23, 2021 10:01 am
Forum: Investing - Theory, News & General
Topic: How do you factor Rental Asset in Asset Allocation
Replies: 67
Views: 4874

Re: How do you factor Rental Asset in Asset Allocation

This is a good one for the BH forum. I am surprised most people aren't saying to SELL the real estate and put it in the BH portfolio. I absolutely look at the equity available in each rental but discount it realistically for costs to sell. Whatever I would net or be able to 1031 into another proper...
by dbr
Fri Jul 23, 2021 9:55 am
Forum: Personal Investments
Topic: What should Asset Allocation be for this Retired Parent
Replies: 19
Views: 959

Re: What should Asset Allocation be for this Retired Parent

I guess my original view grew from the fact that my mom is already receiving a fixed income through her pension. And how much different is a pension from a million dollar portfolio? I can see pros and cons to both. A pension is different from a portfolio with respect to about any and every property...
by dbr
Fri Jul 23, 2021 9:47 am
Forum: Investing - Theory, News & General
Topic: How do you factor Rental Asset in Asset Allocation
Replies: 67
Views: 4874

Re: How do you factor Rental Asset in Asset Allocation

Historically, there have been three primary asset classes, but today financial professionals generally agree that there are four broad classes of assets: Equities (stocks) Fixed-income and debt (bonds) Money market and cash equivalents Real estate and tangible assets https://www.thebalance.com/use-...
by dbr
Fri Jul 23, 2021 9:19 am
Forum: Personal Investments
Topic: What should Asset Allocation be for this Retired Parent
Replies: 19
Views: 959

Re: What should Asset Allocation be for this Retired Parent

For a person living on a pension and Social Security $70k in savings as total assets is inadequate as a financial reserve and should not be at risk. If we imagine her pension and SS to be in the range of $50k annually then 1% earning on $70k is $700 and 5% earning is $3500. Compared to $50k the diff...
by dbr
Fri Jul 23, 2021 9:00 am
Forum: Personal Investments
Topic: Can I buy DirectTreasury bonds or I-bonds in brokerages?
Replies: 16
Views: 1885

Re: Can I buy DirectTreasury bonds or I-bonds in brokerages?

Do interest rates affect TIPS too or just inflation ? Any other factors that effect TIPS Yes, TIPS market pricing is affected by real interest rates. If you sell the Tip bond before maturity you have interest rate risk (it can be either good or bad). If you hold the Tip ind until maturity you don't...
by dbr
Fri Jul 23, 2021 8:46 am
Forum: Personal Investments
Topic: Can I buy DirectTreasury bonds or I-bonds in brokerages?
Replies: 16
Views: 1885

Re: Can I buy DirectTreasury bonds or I-bonds in brokerages?

Destiple wrote: Fri Jul 23, 2021 8:43 am Do interest rates affect TIPS too or just inflation ? Any other factors that effect TIPS
Yes, TIPS market pricing is affected by real interest rates.
by dbr
Fri Jul 23, 2021 8:45 am
Forum: Personal Investments
Topic: What should Asset Allocation be for this Retired Parent
Replies: 19
Views: 959

Re: What should Asset Allocation be for this Retired Parent

I would back off and do more thinking about what purpose our mother has for this money. I would also clearly understand what all of her investments are and how large they are compared to possible needs. It is entirely possible this money should stay exactly where it is or in a similar bank deposit a...
by dbr
Fri Jul 23, 2021 8:40 am
Forum: Personal Investments
Topic: Are Bonds necessary if you have a pension and SS?
Replies: 28
Views: 3320

Re: Are Bonds necessary if you have a pension and SS?

It isn't a question of what is necessary. It is a question of what choice you want to make for how much risk you want to have with your investments. Risk means specifically how variable your returns are including the possibility that the Apple, Microsoft, or Amazon could lose 10%, 20%, or 50% in a y...
by dbr
Fri Jul 23, 2021 8:24 am
Forum: Investing - Theory, News & General
Topic: Standard deviation daily or annual
Replies: 3
Views: 283

Re: Standard deviation daily or annual

Portfolio visualizer says they quote SD of monthly returns. The data they show for total stock index fund , for 3M Company, and for Tesla are respectively 14%, 18%, and 62% from 2011 to 2021.
by dbr
Thu Jul 22, 2021 7:52 pm
Forum: Personal Finance (Not Investing)
Topic: power of attorney for 401(k)/403(b) acct.?
Replies: 3
Views: 317

Re: power of attorney for 401(k)/403(b) acct.?

it's probably just like the easy to find form at Fidelity for transferring assets between Fidelity and other brokers but is not to be used to transfer between Fidelity accounts, a different form that I found harder to find. I think I was able to track it down by Googling for how to transfer between ...
by dbr
Thu Jul 22, 2021 7:05 pm
Forum: Investing - Theory, News & General
Topic: Which TIPS offer the best inflation protection?
Replies: 29
Views: 2738

Re: Which TIPS offer the best inflation protection?

Thank you all for the very informative posts! What I take from the discussion so far is that the price change of TIPS that is due just to the inflation adjustment would be same for all TIPS, no matter what the duration is. So assuming there is no interest rate change, all TIPS should respond to an ...
by dbr
Thu Jul 22, 2021 4:17 pm
Forum: Investing - Theory, News & General
Topic: Which TIPS offer the best inflation protection?
Replies: 29
Views: 2738

Re: Which TIPS offer the best inflation protection?

Vanguard has a paper on this: The Long and Short of TIPS. They find that short-term TIPS has a greater correlation with short-term unexpected inflation compared to intermediate and long TIPS. So they advocate shortening TIPS duration. Personally I don't find this convincing - shouldn't you care mor...
by dbr
Thu Jul 22, 2021 3:38 pm
Forum: Investing - Theory, News & General
Topic: Calculating Asset Allocation
Replies: 13
Views: 803

Re: Calculating Asset Allocation

I would like to have a 60/40 allocation. What is recommended for styles of investing percentages within stocks and bonds categories? I am 65 years old. I haven't been paying too much attention to that aspect. I suggest the concept of the three fund portfolio using US total stock market, Internation...
by dbr
Thu Jul 22, 2021 3:21 pm
Forum: Personal Investments
Topic: Can I buy DirectTreasury bonds or I-bonds in brokerages?
Replies: 16
Views: 1885

Re: Can I buy DirectTreasury bonds or I-bonds in brokerages?

Are tips better than ibonds? Can you buy those in brokerages? There is a secondary market for TIPS. The question which is better does not mean anything. They are just different in a lot of ways and they are the same in the fact that the face value of a bond is periodically indexed according to the ...
by dbr
Thu Jul 22, 2021 2:42 pm
Forum: Personal Investments
Topic: Start building cash reserve or is it cash drag?
Replies: 21
Views: 3181

Re: Start building cash reserve or is it cash drag?

Is it wrong to consider cash as part of your fixed income allocation? So when we say 60/40 we mean 60% in equities and 40% in fixed income such as bonds, CDs, money market accounts, and high yield savings account. If that is the case, then why not include the cash one has in their high yield saving...
by dbr
Thu Jul 22, 2021 2:35 pm
Forum: Investing - Theory, News & General
Topic: Which TIPS offer the best inflation protection?
Replies: 29
Views: 2738

Re: Which TIPS offer the best inflation protection?

Vanguard has a paper on this: The Long and Short of TIPS. They find that short-term TIPS has a greater correlation with short-term unexpected inflation compared to intermediate and long TIPS. So they advocate shortening TIPS duration. Personally I don't find this convincing - shouldn't you care mor...
by dbr
Thu Jul 22, 2021 2:23 pm
Forum: Personal Investments
Topic: help a 77 year old friend organize his assets
Replies: 4
Views: 566

Re: help a 77 year old friend organize his assets

An SPIA can be purchased with a fixed escalator (1%, 2%,3%, etc). While this is not perfect inflation protection, a 3% escalator has a reasonable likelihood of outperforming inflation long term. That is probably true. Note I believe the escalation is implemented even when costs are not increasing, ...
by dbr
Thu Jul 22, 2021 2:20 pm
Forum: Investing - Theory, News & General
Topic: Calculating Asset Allocation
Replies: 13
Views: 803

Re: Calculating Asset Allocation

It depends on how finely you have stratified your definition of assets. The highest level is stocks vs bonds, and that is very simple if the funds you use hold only stocks or bonds in any one fund. If you use target retirement or blended funds of any kind you will have to look up the fund portfolio ...
by dbr
Thu Jul 22, 2021 2:16 pm
Forum: Investing - Theory, News & General
Topic: Why Jack Bogle Doesn't (Didn't) Own Non-US Stocks
Replies: 54
Views: 5088

Re: Why Jack Bogle Doesn't (Didn't) Own Non-US Stocks

I don't think this has been discussed here before, so I am very interested in what people have to say about it. I appreciate well crafted sarcasm :sharebeer but I'd rather see 100 threads on this subject, which very well may be the preeminent investing issue of our lifetime, than which brand of dog...
by dbr
Thu Jul 22, 2021 2:04 pm
Forum: Investing - Theory, News & General
Topic: Which TIPS offer the best inflation protection?
Replies: 29
Views: 2738

Re: Which TIPS offer the best inflation protection?

Vanguard has a paper on this: The Long and Short of TIPS. They find that short-term TIPS has a greater correlation with short-term unexpected inflation compared to intermediate and long TIPS. So they advocate shortening TIPS duration. Personally I don't find this convincing - shouldn't you care mor...
by dbr
Thu Jul 22, 2021 1:54 pm
Forum: Personal Investments
Topic: Best index fund calculator?
Replies: 6
Views: 701

Re: Best index fund calculator?

Hello everybody I wanted to get a recommendation if you do not mind posting the link in your reply to me for an index fund calculator , what I would like to do is find out what the future returns would look like if I were to invest $10,000 and contribute $500 per month into the fund and reinvest th...