Search found 35527 matches

by dbr
Tue May 11, 2021 3:40 pm
Forum: Personal Investments
Topic: Advice on Funding Assisted Living
Replies: 18
Views: 639

Re: Advice on Funding Assisted Living

Note the same models that tend to give 4% safe withdrawal rates for 30 year drawdowns would give more like 5.5% for 15 year drawdown.
by dbr
Tue May 11, 2021 3:32 pm
Forum: Personal Investments
Topic: How to go about selling stocks to buy an index fund?
Replies: 3
Views: 175

Re: How to go about selling stocks to buy an index fund?

Depending on your income including the capital gain the capital gains tax rate could be zero if you are careful what you sell and in which years. For single filers the bracket point is $40k taxable income, but for joint filers it is $80k taxable income. Over the bracket point the tax rate goes up to...
by dbr
Tue May 11, 2021 1:31 pm
Forum: Personal Investments
Topic: Social Security as Part of Bond Allocation
Replies: 51
Views: 1701

Re: Social Security as Part of Bond Allocation

Should Social Security income be treated as part of your bond allocation since it’s guaranteed income. If so, what % rate should it be used to calculate the total value. For example, $46,000 annual social security income. Is 3% a good value, so $46,000/0.03 = $1,533,333 bond equivalent. Higher or l...
by dbr
Tue May 11, 2021 12:49 pm
Forum: Personal Investments
Topic: Advice on Funding Assisted Living
Replies: 18
Views: 639

Re: Advice on Funding Assisted Living

$12,000/year on a portfolio of $300,000 is a 4% withdrawal rate. On a time span of 10-15 years that is not going to fail at about any scheme of investing assets. If you want a Vanguard fund to provide for this need the Target Retirement Income Fund or the LifeStrategy Income Fund might be choices. T...
by dbr
Tue May 11, 2021 12:34 pm
Forum: Personal Investments
Topic: Fidelity Bond Fund advice
Replies: 6
Views: 368

Re: Fidelity Bond Fund advice

Background: My company retirement plan is with Fidelity, I prefer to stick with Fidelity funds for simplicity. I do have a Fidelity Brokerage account linked to my 401K. My question is: For Bond Fund allocation I use only FXNAX (Fidelity® US Bond Index Fund) and have about 160K which is about a 35% ...
by dbr
Tue May 11, 2021 12:14 pm
Forum: Personal Investments
Topic: Should I continue buying company stock?
Replies: 12
Views: 910

Re: Should I continue buying company stock?

Please check the exact conditions for implementing NUA. I might be wrong but I think you do that only when you roll over the entire 401k and take the company stock as a distribution. But you have to take all of it, or at least you can do it only once. That would give you an income of $615k from tha...
by dbr
Tue May 11, 2021 11:59 am
Forum: Personal Investments
Topic: Diversifying away from valuable investment
Replies: 1
Views: 117

Re: Diversifying away from valuable investment

It looks like the problem is how to price the risk in the stock so that you know how much tax you can pay to diversify the holding. A starting point is that you don't even know how to estimate the risk. I'm surprised a person schooled as an advisor or as an accountant does not know how to compute th...
by dbr
Tue May 11, 2021 11:50 am
Forum: Personal Investments
Topic: Social Security as Part of Bond Allocation
Replies: 51
Views: 1701

Re: Social Security as Part of Bond Allocation

The first level rationale is that a bond really is a bond and a Social Security payment really is not a bond. A future guaranteed payment is also a "bond". In fact, bonds are just that: future guaranteed (to a larger or lesser extent) payments. It would be odd if a promise by, let's say, ...
by dbr
Tue May 11, 2021 11:47 am
Forum: Personal Investments
Topic: Should I continue buying company stock?
Replies: 12
Views: 910

Re: Should I continue buying company stock?

Please check the exact conditions for implementing NUA. I might be wrong but I think you do that only when you roll over the entire 401k and take the company stock as a distribution. But you have to take all of it, or at least you can do it only once. That would give you an income of $615k from tha...
by dbr
Tue May 11, 2021 11:39 am
Forum: Personal Investments
Topic: Dilemma: what to do with a large amount of cash at the age of 75?
Replies: 28
Views: 2472

Re: Dilemma: what to do with a large amount of cash at the age of 75?

I question the desire to go into real estate. That seems like work. And unless he has a lot of real estate experience and enjoys it, I don't really see the point. Yes, it could be a retirement pastime for a person who has spent their life in business and wants a business to run or be involved in. B...
by dbr
Tue May 11, 2021 11:37 am
Forum: Personal Investments
Topic: Social Security as Part of Bond Allocation
Replies: 51
Views: 1701

Re: Social Security as Part of Bond Allocation

I think people who say this, are really just looking for a way to mentally justify high equity allocations. We never see these kinds of posts when the market is tanking. You are free to set your AA to whatever you want it to be. You don’t need permission from anybody, and you don’t have to justify ...
by dbr
Tue May 11, 2021 11:33 am
Forum: Personal Investments
Topic: Social Security as Part of Bond Allocation
Replies: 51
Views: 1701

Re: Social Security as Part of Bond Allocation

How different is a social security payment of $2,500 in June 2022 from a $2,500 face value zero coupon bond maturing in June 2022 ? Besides the fact that the latter is marketable, while the former is not, they are basically the same. If you mean how different is a stream of SS payments from a decli...
by dbr
Tue May 11, 2021 11:07 am
Forum: Personal Investments
Topic: Social Security as Part of Bond Allocation
Replies: 51
Views: 1701

Re: Social Security as Part of Bond Allocation

But the real question about SS as a bond is whether or not that is helpful to arriving at a good choice of how many dollars should be invested in stocks and how many dollars should be invested in bonds. Yes, I think this is a good way to think about it -- i.e. do you get a better AA strategy if you...
by dbr
Tue May 11, 2021 11:03 am
Forum: Investing - Theory, News & General
Topic: annuities
Replies: 4
Views: 304

Re: annuities

Wade Pfau published some work on that, or maybe it was Kitces. You may be able to find it in a search of some kind.

I think the results were that fixed nominal SPIA plus stocks were not a bad idea, probably better than bonds/stocks. But you would have to find the paper/article.
by dbr
Tue May 11, 2021 10:57 am
Forum: Personal Investments
Topic: Dilemma: what to do with a large amount of cash at the age of 75?
Replies: 28
Views: 2472

Re: Dilemma: what to do with a large amount of cash at the age of 75?

i would be giving a lot of that away to worthwhile charities ----------------------------------- Yes, a person could consult with his estates attorney considering charitable trust giving or even endowing a trust for some reason. This is an issue of purpose and also an issue of inheritance and taxes.
by dbr
Tue May 11, 2021 10:55 am
Forum: Personal Consumer Issues
Topic: Windows 10 + Chrome = Slow and Sluggish
Replies: 53
Views: 2120

Re: Windows 10 + Chrome = Slow and Sluggish

Here is some research on Chrome and memory use: https://www.bing.com/search?q=chrome+is ... 0b43acae18
by dbr
Tue May 11, 2021 10:52 am
Forum: Personal Investments
Topic: Should I continue buying company stock?
Replies: 12
Views: 910

Re: Should I continue buying company stock?

Please check the exact conditions for implementing NUA. I might be wrong but I think you do that only when you roll over the entire 401k and take the company stock as a distribution. But you have to take all of it, or at least you can do it only once. That would give you an income of $615k from that...
by dbr
Tue May 11, 2021 10:41 am
Forum: Personal Investments
Topic: Social Security as Part of Bond Allocation
Replies: 51
Views: 1701

Re: Social Security as Part of Bond Allocation

How different is a social security payment of $2,500 in June 2022 from a $2,500 face value zero coupon bond maturing in June 2022 ? Besides the fact that the latter is marketable, while the former is not, they are basically the same. If you mean how different is a stream of SS payments from a decli...
by dbr
Tue May 11, 2021 9:23 am
Forum: Personal Investments
Topic: Social Security as Part of Bond Allocation
Replies: 51
Views: 1701

Re: Social Security as Part of Bond Allocation

To add to the comment about the effect of having income streams. The result can be to decide to take more risk in investing or to take less risk. The SS as bond option only implies increasing the actual investment in stocks. Mathematically it is even possible to end up specifying stocks to be more t...
by dbr
Tue May 11, 2021 9:18 am
Forum: Personal Investments
Topic: Selection of 401k funds
Replies: 7
Views: 403

Re: Selection of 401k funds

I am a great believer in the basic philosophy of the three fund portfolio with investments located for best tax efficiency. That means that the go to for fund selection in a 401k would be to find a low cost total bond market index fund and a total stock fund. I think you have both in your list. The ...
by dbr
Tue May 11, 2021 9:13 am
Forum: Personal Investments
Topic: Social Security as Part of Bond Allocation
Replies: 51
Views: 1701

Re: Social Security as Part of Bond Allocation

+1000 ^^^ For further discussion read these 22,400 previous posts on the question: https://www.google.com/search?sitesearch=bogleheads.org&q=social+security+as+bond What you do is assess your need, ability, and willingness to take risk in stocks and bonds and those analyses are affected by havin...
by dbr
Tue May 11, 2021 8:55 am
Forum: Personal Investments
Topic: Dilemma: what to do with a large amount of cash at the age of 75?
Replies: 28
Views: 2472

Re: Dilemma: what to do with a large amount of cash at the age of 75?

I think the Swedroe, Ferri, etc. ilk of advisors would be recommended. I am not making a recommendation for anyone in particular. This forum will be able to come up with a list of plausible suggestions that run the gamut of about all you can imagine with little guidance what to select. These will no...
by dbr
Tue May 11, 2021 8:21 am
Forum: Personal Investments
Topic: Your Honest Opinion On This SCV Portfolio
Replies: 13
Views: 705

Re: Your Honest Opinion On This SCV Portfolio

If you want a small cap and value tilt don't you at least want to go somewhere and calculate the factor loadings to see what you have done?

Of course the question what they should be has no answer without running some sort of optimization on an appropriate output.
by dbr
Tue May 11, 2021 8:12 am
Forum: Personal Investments
Topic: Does anybody actually rebalance across bond holdings?
Replies: 14
Views: 780

Re: Does anybody actually rebalance across bond holdings?

In theory, yes, but it has never happened. Even rebalancing stocks and bonds is a rare event for me. There is a degree of rebalancing when withdrawing. It is a "comes out in the wash" sort of thing.
by dbr
Tue May 11, 2021 8:09 am
Forum: Investing - Theory, News & General
Topic: What Ever Happened to "Your Age In Bonds"?
Replies: 108
Views: 8014

Re: What Ever Happened to "Your Age In Bonds"?

My father has always been an aggressive investor, and despite being nearly 72, he's not even remotely interested in bonds, and his and my mom's portfolio is 100% stock. But all of their essential spending needs are covered by SS benefits, so their portfolio is just for 'fun money'. It's those kinds...
by dbr
Mon May 10, 2021 10:17 pm
Forum: Personal Investments
Topic: [401k Rate Of Return]
Replies: 5
Views: 469

Re: [401k Rate Of Return]

The standard deviation of annual return for stocks is on the order of 20%. That means a standard deviation around an average of 8% would be the range -12% to +28% in a year. The two standard deviation range would be -32% to +48%. So in terms of statistics 20%-25% is uncommon but not extreme. The bes...
by dbr
Mon May 10, 2021 1:57 pm
Forum: Investing - Theory, News & General
Topic: Confused about dividend investing, market downturns and early retirement
Replies: 88
Views: 5675

Re: Confused about dividend investing, market downturns and early retirement

I was answering the question about what happens during a downturn and suggested that receiving income from dividend payers might be better than receiving no income from non-div payers during a downturn. If by "better" you mean something psychological, like "more comforting", the...
by dbr
Mon May 10, 2021 11:30 am
Forum: Personal Investments
Topic: What do people actually mean when they say "buy land" to build wealth?
Replies: 16
Views: 1760

Re: What do people actually mean when they say "buy land" to build wealth?

I would say buy land means exactly that. The idea is to buy land that has productive resources on it such as farmland, timberland, land lying over oil and gas deposits the rights to which are included, etc. It could also mean investing in real estate which you would operate as a business, from one h...
by dbr
Mon May 10, 2021 11:22 am
Forum: Personal Investments
Topic: Critique my dividend stock strategy
Replies: 60
Views: 4031

Re: Critique my dividend stock strategy

On the topic of general dividend investing; I don't understand the strong preference some people have with getting a regular but discretionary payment from your investments, where the discretion is that of the company management. Especially in tax-advantaged where there's no tax difference, why not...
by dbr
Mon May 10, 2021 11:17 am
Forum: Investing - Theory, News & General
Topic: Confused about dividend investing, market downturns and early retirement
Replies: 88
Views: 5675

Re: Confused about dividend investing, market downturns and early retirement

I'm not sure how or why you conclude I am making claims. Nowhere do I make any claim or suggest that anyone choose any particular investment strategy. I simply present data and the reader can draw whatever conclusion they want. Unfortunately, there seem to be many on this forum who claim: "div...
by dbr
Mon May 10, 2021 9:43 am
Forum: Personal Investments
Topic: How much is enough for a single man to retire?
Replies: 53
Views: 5273

Re: How much is enough for a single man to retire?

I think one sorta-lazy way to calculate end-of-life factors for a single person would be to look at a nice CCRC (continuing care retirement community) - including buy-in and monthly costs, and tack that onto your lump sum you need to save. $1M to $1.5M extra would probably do it for a very nice pla...
by dbr
Mon May 10, 2021 9:39 am
Forum: Personal Investments
Topic: What does your bond portfolio look like in this low interest world?
Replies: 65
Views: 5362

Re: What does your bond portfolio look like in this low interest world?

I’ve moved a good part of my fixed income portfolio to multi year guaranteed annuities (MYGAs). Better yield than bond funds, no market value fluctuations if held to maturity. I will decide whether to go back into bonds as the MYGAs mature. A great move in my opinion. In this rate environment, I’m ...
by dbr
Mon May 10, 2021 9:13 am
Forum: Personal Investments
Topic: How much is enough for a single man to retire?
Replies: 53
Views: 5273

Re: How much is enough for a single man to retire?

When I was planning for retirement I implemented a 25% contingency on expenses. It has turned out we have not spent that much. On the other hand it has also turned out that investment returns have not been worst case numbers and spending more than 4% rule would have been perfectly fine these 15 year...
by dbr
Mon May 10, 2021 9:10 am
Forum: Personal Investments
Topic: 529 College Fund when to move from 100% equity
Replies: 15
Views: 1076

Re: 529 College Fund when to move from 100% equity

. When we had kids in college 529s didn't exist and we financed college spending out of current income. That’s great but in constant dollars wages have remained constant since the 1990s while college costs have almost doubled. OP— I have a kid going off to school soon and when the market dropped la...
by dbr
Mon May 10, 2021 9:06 am
Forum: Personal Investments
Topic: 529 College Fund when to move from 100% equity
Replies: 15
Views: 1076

Re: 529 College Fund when to move from 100% equity

I am in 90/10 funds with my family's 529s, which are being drawn down now. That means you have no problem with the value fluctuating, such as a market decline of 20%-30%-40% that takes one to a few years to recover. The last decline of that sort happened in 2008 and took three years or so to recove...
by dbr
Mon May 10, 2021 9:02 am
Forum: Personal Investments
Topic: Buying Vanguard Funds through Fidelity?
Replies: 23
Views: 1943

Re: Buying Vanguard Funds through Fidelity?

Does fidelity charge those fee to buy vanguard funds if the account in question is a workplace sponsored retirement account? My workplace just removed vanguard abs a brokerage and switched us all to fidelity. I remained in vtsax without thinking about the fee question! A company retirement plan at ...
by dbr
Mon May 10, 2021 8:58 am
Forum: Personal Investments
Topic: All Growth funds in portfolio - Sell or stay in?
Replies: 9
Views: 528

Re: All Growth funds in portfolio - Sell or stay in?

I really appreciate your feedback. I have to say I am new and learning now. My 1 year overall returns are about 50%. Given this is in my retirement account, should I just sell everything now and put it in VTSAX or VFIAX? Is that a reasonable approach? Thanks I might. But before you make changes it ...
by dbr
Mon May 10, 2021 8:47 am
Forum: Personal Investments
Topic: 529 College Fund when to move from 100% equity
Replies: 15
Views: 1076

Re: 529 College Fund when to move from 100% equity

For a reached goal and a time line of 3-9 years across the two, I don't think I would have any money in stocks from now on. The alternative is that your holding could fall short of need anytime from now on. That is not a problem if the assumption is that you have other resources somewhere that can m...
by dbr
Mon May 10, 2021 8:31 am
Forum: Personal Investments
Topic: Retirement: No employer plan and not self employed
Replies: 12
Views: 1079

Re: Retirement Savings Question

Lots of people have ordinary "taxable" brokerage accounts. As suggested above, for tax efficiency one generally holds stocks rather than bonds in such accounts. Bonds can go in tax deferred accounts. A perfectly good holding is total stock market fund or ETF at a broker of your choice. A c...
by dbr
Mon May 10, 2021 8:24 am
Forum: Personal Investments
Topic: All Growth funds in portfolio - Sell or stay in?
Replies: 9
Views: 528

Re: All Growth funds in portfolio - Sell or stay in?

When you take a tilt like that the rule is that you stay there forever. Growth would not be a tilt that has any basis other than chasing performance.

A possible suggestion is to invest in the total market and just stay there. The comments above about tax deferred and taxable issues apply.
by dbr
Mon May 10, 2021 8:22 am
Forum: Personal Investments
Topic: How much is enough for a single man to retire?
Replies: 53
Views: 5273

Re: How much is enough for a single man to retire?

Single man, single woman, should make no difference. What matters are your annual expenses, and ensuring that your funds don't expire before you do. There are countless threads on this subject, many calculators, etc. A simple measure is to take your assets and divide by your life expectancy. If you...
by dbr
Mon May 10, 2021 8:11 am
Forum: Personal Investments
Topic: How much is enough for a single man to retire?
Replies: 53
Views: 5273

Re: How much is enough for a single man to retire?

A general estimate to answer this kind of question is the infamous estimate that a portfolio of stocks and bonds can safely support withdrawals of the initial portfolio value increased by inflation every year for up to 30 years. So your $3M portfolio would fit a plan of spending $120,000/year. You a...
by dbr
Mon May 10, 2021 7:58 am
Forum: Investing - Theory, News & General
Topic: Expense Ratios and Ratings / Recommendations
Replies: 7
Views: 517

Re: Expense Ratios and Ratings / Recommendations

Except low cost it is no to most of your questions and yes to there are lots of choices that could be as good. What is going on is a suggestion for a widely diversified, low cost, intermediate term bond fund as the generic go-to for a portfolio. If there is a driver it is that the recommendation is ...
by dbr
Mon May 10, 2021 7:49 am
Forum: Personal Investments
Topic: Investing - Approaching Retirement
Replies: 4
Views: 399

Re: Investing - Approaching Retirement

All of our investments are at Vanguard. - I have an IRA with $100,000. Invested in 50% VTSAX and 50% VBLTX - We have a joint investment account of $120,000 invested in 50% VTSAX and 50% VBLTX We have a savings account with $200,000 in cash at Marcus -$140,000 is two years living expenses -$70,000 i...
by dbr
Mon May 10, 2021 7:32 am
Forum: Personal Investments
Topic: What does your bond portfolio look like in this low interest world?
Replies: 65
Views: 5362

Re: What does your bond portfolio look like in this low interest world?

Bonds don't exist in isolation, there aren't any great places to put your money, so we are seeing, stocks, real estate, commodities, even crypto all through the roof. I see the dividend stock people touting that idea and shake my head in wonder, they waited until stocks were really high and then bo...
by dbr
Sun May 09, 2021 9:59 pm
Forum: Personal Investments
Topic: Critique my dividend stock strategy
Replies: 60
Views: 4031

Re: Critique my dividend stock strategy

I thought I might be better off with VYM, Vanguard’s High dividend yield ETF in early May last year. So far that is working out ok as compared to total bond ETFs. That fund lost about 25% in 2020 and lost 52% in 2007-2009. It took three years to recover from the latter, and that recovery was relati...
by dbr
Sun May 09, 2021 7:07 pm
Forum: Personal Consumer Issues
Topic: Windows 10 + Chrome = Slow and Sluggish
Replies: 53
Views: 2120

Re: Windows 10 + Chrome = Slow and Sluggish

A computer upgrade being due I got a Dell Win 10 desktop with 2TB SSD and 16GB memory. I use the Edge browser that comes with the system. It looks pretty sure that 8GB would be marginal and I don't run anything exotic at all. Without a doubt this is the fastest and cleanest system I've yet used in s...
by dbr
Sun May 09, 2021 5:53 pm
Forum: Personal Investments
Topic: What does your bond portfolio look like in this low interest world?
Replies: 65
Views: 5362

Re: What does your bond portfolio look like in this low interest world?

I have held half intermediate TIPS and half intermediate Treasuries in a 50/50 asset allocation for a couple of decades now. There is no plan to change anything. I did sell some stocks recently as rebalance band was exceeded. But we have been retired most of that time so this is a portfolio that is ...
by dbr
Sun May 09, 2021 5:47 pm
Forum: Personal Investments
Topic: Buying Vanguard Funds through Fidelity?
Replies: 23
Views: 1943

Re: Buying Vanguard Funds through Fidelity?

Am I correct in thinking that the main difference between the Mutual Fund and the ETF is that the ETF doesn't have you wait until the end of the day and use the end of day price as to when you purchased? I guess possibly the ETF versions aren't identical to the holdings of the Mutual Fund holdings ...
by dbr
Sun May 09, 2021 5:10 pm
Forum: Personal Investments
Topic: VTI vs. SCHB
Replies: 5
Views: 969

Re: VTI vs. SCHB

Based on what are you saying VTI is more volatile. In Portfolio Visualizer from 2010 to 2021 those two funds are identical.