Search found 9812 matches

by Call_Me_Op
Mon Jan 01, 2024 6:40 pm
Forum: Investing - Theory, News & General
Topic: A simple way to objectify risk tolerance
Replies: 14
Views: 2079

Re: A simple way to objectify risk tolerance

I think that people react based upon the instantaneous value of their overall portfolio. To first order, if a person would be freaked-out by a 25% drop in their portfolio value, they should probably not have more than 50% in stocks. So % Equity = 2*(% Max_Tolerable_Loss) seems reasonable.
by Call_Me_Op
Mon Jan 01, 2024 4:35 pm
Forum: Investing - Theory, News & General
Topic: Buffered ETF's
Replies: 4
Views: 1145

Re: Buffered ETF's

I have not studied them much, but I notice that they have a hard-limit on the upside but no hard-limit on the downside. That would seem to limit the appeal. May be of some value to some people strictly for behavioral reasons.
by Call_Me_Op
Mon Jan 01, 2024 1:57 pm
Forum: Personal Investments
Topic: How important are TIPS?
Replies: 27
Views: 3336

Re: How important are TIPS?

chrisdds98 wrote: Sun Dec 31, 2023 9:58 am TBM has default risk and would be completely wrecked with prolonged high inflation.
...which even a modest allocation to stocks is highly likely to take care of over time.
by Call_Me_Op
Mon Jan 01, 2024 12:09 pm
Forum: Personal Investments
Topic: Jan 2024 TIAA GSRA rate?
Replies: 12
Views: 1057

Re: Jan 2024 TIAA GSRA rate?

Fully liquid, but there may be a consequence with respect to Loyalty Bonus.
by Call_Me_Op
Mon Jan 01, 2024 12:05 pm
Forum: Personal Investments
Topic: Jan 2024 TIAA GSRA rate?
Replies: 12
Views: 1057

Re: Jan 2024 TIAA GSRA rate?

Eli79 wrote: Mon Jan 01, 2024 11:52 am
crefwatch wrote: Mon Jan 01, 2024 11:51 am https://www.tiaa.org/public/investment- ... r=47933633

Note that this link will deliver the then-current data sheet, in the future. I think you are interested in the new-money rate, in table under the subhead, "Interest Crediting Rates." But you simply wrote the word "rate".


Wow. It took a big dump.
The reason I do not trade my TIAA in the GSRA is if I do I may lose any associated Loyalty Bonus should I annuitize in the future. Much of it is "old money."
by Call_Me_Op
Mon Jan 01, 2024 11:55 am
Forum: Personal Finance (Not Investing)
Topic: Help me understand what “25x” means?
Replies: 23
Views: 4953

Re: Help me understand what “25x” means?

sapper1371 wrote: Mon Jan 01, 2024 11:19 am That’s for all the responses. My wife and I are hoping to retire at 55, and delay our SS and Pensions until 70. This means that my gap will basically be 100% for the first 15 years and then almost zero for years 16-40. So I guess X is not really meaningful with such a big swing.
Sure it is. You basically need 15X (where X refers to your expenses for the first year of retirement). Social Security should take care of the rest. Obviously, you want a buffer for unforeseen expenses.
by Call_Me_Op
Mon Jan 01, 2024 11:50 am
Forum: Personal Investments
Topic: Jan 2024 TIAA GSRA rate?
Replies: 12
Views: 1057

Re: Jan 2024 TIAA GSRA rate?

Eli79 wrote: Mon Jan 01, 2024 11:47 am
Call_Me_Op wrote: Mon Jan 01, 2024 11:45 am
Eli79 wrote: Mon Jan 01, 2024 11:41 am I don’t have access to it.

Thank you!
I think it depends upon vintage of the funds (when you added the money).
It updates monthly, but may have stayed the same (6%). I continuously invest but would divert the funds elsewhere once it dropped below treasury rates.
What treasuries are you referring to - tbills?
by Call_Me_Op
Mon Jan 01, 2024 11:45 am
Forum: Personal Investments
Topic: Jan 2024 TIAA GSRA rate?
Replies: 12
Views: 1057

Re: Jan 2024 TIAA GSRA rate?

Eli79 wrote: Mon Jan 01, 2024 11:41 am I don’t have access to it.

Thank you!
I think it depends upon vintage of the funds (when you added the money).
by Call_Me_Op
Mon Jan 01, 2024 9:21 am
Forum: Personal Investments
Topic: When to sell 0% iBonds
Replies: 33
Views: 5845

Re: When to sell 0% iBonds

I am probably an oddball in this regard (and others :)), but I don't worry about minor optimization, particularly when it is uncertain. I am holding my 0% I Bonds. If I sell them, I will need to pay taxes on whatever I buy. if I buy a TIPS, at my 35% federal rate, it may or may not make sense - depending upon future inflation and future tax rate. Plus I like the fact that they are unique investments - better than TIPS in a couple of ways even at a lower real rate.
by Call_Me_Op
Mon Jan 01, 2024 7:37 am
Forum: Personal Consumer Issues
Topic: Would you move midlife because a community doesn’t click
Replies: 63
Views: 15178

Re: Would you move midlife because a community doesn’t click

FWIW, I did feel that way for many years. But my neighborhood has gentrified to some extent and I have also become accustomed to it - so now I feel much better about things. Remember that neighborhoods can and do change - and that can go either way. Another point is I actually helped to change my neighborhood in a positive way. How, you might wonder. By calling people out when they were over-stepping their boundaries. For example, a guy a few houses away would let his dog bark outside all day and also sometimes into the night and very early in the morning - waking me up as well as some neighbors. I got together with the neighbors and put pressure on the local animal control officer, and he forced the neighbor to ensure that the dog does not...
by Call_Me_Op
Sun Dec 31, 2023 8:29 am
Forum: Investing - Theory, News & General
Topic: Can someone explain to me what's actually driving returns?
Replies: 77
Views: 12632

Re: Can someone explain to me what's actually driving returns?

popoki wrote: Fri Dec 29, 2023 9:38 pm The Fed intentionally tried to induce a recession and yet the resilient US economy powered through. Never bet against the US economy.
I don't agree. The Fed's goal was to tame inflation, not to drive the economy into a recession. The fact that aggressive Fed tightening often leads to a recession does not mean that was their goal.
by Call_Me_Op
Sun Dec 31, 2023 8:23 am
Forum: Investing - Theory, News & General
Topic: Can someone explain to me what's actually driving returns?
Replies: 77
Views: 12632

Re: Can someone explain to me what's actually driving returns?

I've heard all the classic examples of what drives long term, positive returns for stock market indexes. Population growth, inflation, innovation, GDP growth, etc. But the other day I listened to a podcast from Ben Felix that showed multiple studies proving that GDP growth usually does not equate to positive stock market returns, even over time. Examples used were China(30 years of large GDP growth yet flat stocks) and some other countries. With this being the case, what is the actual fundamental driver of stock returns, I know inflation plays a part, but I always thought the main driver was companies becoming more efficient/profitable and the overall economy becoming better. If this is not true, then what am I really investing in? Can som...
by Call_Me_Op
Sun Dec 31, 2023 8:07 am
Forum: Personal Investments
Topic: 5% Speculation Artificial Intelligence Play - Most effective way to Add AI to Portfolio
Replies: 23
Views: 2700

Re: 5% Speculation Artificial Intelligence Play - Most effective way to Add AI to Portfolio

TimeIsYourFriend wrote: Sun Dec 31, 2023 7:57 am Your best best would be to pick individual stocks that you think will be the winners....
Or better yet, don't pick any individual stocks at all.
by Call_Me_Op
Sun Dec 31, 2023 8:05 am
Forum: Personal Investments
Topic: 5% Speculation Artificial Intelligence Play - Most effective way to Add AI to Portfolio
Replies: 23
Views: 2700

Re: 5% Speculation Artificial Intelligence Play - Most effective way to Add AI to Portfolio

runner3081 wrote: Sun Dec 31, 2023 7:35 am Seems too late. When everyone is talking about it...
Exactly. It is like betting on Tom Brady (of the Patriots) when he was playing. He was super good and everybody knew it. People would have been willing to pay a lot to get a share of Tom Brady's future earnings, so you would have purchased shares of Tom Brady at a very high P/E. Your return would therefore have been strongly influenced by how he performed against the very high expectations.
by Call_Me_Op
Sat Dec 30, 2023 5:38 pm
Forum: Personal Investments
Topic: My father in law says to buy silver...
Replies: 32
Views: 2704

Re: My father in law says to buy silver...

JB2013 wrote: Sat Dec 30, 2023 5:00 pm I feel like I already know the strong consensus here, but is there any usefulness of having any silver?
It is certainly useful - as an electrical conductor - but copper is a better value.
by Call_Me_Op
Sat Dec 30, 2023 3:31 pm
Forum: Investing - Theory, News & General
Topic: Best book to convince someone investing isn't gambling
Replies: 102
Views: 120119

Re: Best book to convince someone investing isn't gambling

Would you read a book that argues investing IS "gambling"? Sure, why not? Well, make no mistake, in the short term, investing in the stock market certainly is gambling. Short-term behavior is largely driven by speculation. Honest question: I know speculation is always present. But is short-term volatility driven largely by speculation or is it the market's constant attempt to factor in new information as it moment-to-moment discounts the current value of future company cash flows? I do not know the answer. What's the difference? That' what speculation is - you are using the information you have at hand to try to out-guess the next guy (or gal). When you buy an index, you are accepting the consensus speculation. Over long periods ...
by Call_Me_Op
Sat Dec 30, 2023 3:00 pm
Forum: Investing - Theory, News & General
Topic: Best book to convince someone investing isn't gambling
Replies: 102
Views: 120119

Re: Best book to convince someone investing isn't gambling

watchnerd wrote: Wed Dec 27, 2023 8:50 am
Angel of Empire wrote: Wed Dec 27, 2023 7:16 am Would you read a book that argues investing IS "gambling"?
Sure, why not?
Well, make no mistake, in the short term, investing in the stock market certainly is gambling. Short-term behavior is largely driven by speculation.
by Call_Me_Op
Sat Dec 30, 2023 2:58 pm
Forum: Investing - Theory, News & General
Topic: SPIA: What Do You Think?
Replies: 91
Views: 9908

Re: SPIA: What Do You Think?

Taylor, would you kindly chime in on this SPIA thread to give us your perspective? We know you bought your SPIAs in your 80s and have found that to be very advantageous. Also, what do you think of buying a SPIA in an IRA and using the payments for RMDs? Julieta7: As you may know, I love my two worry-free lifetime annuities which help give me more income than I can spend. They are similar to Social Security but without the inflation adjustment. Many investors do not realize that a Single Premium Immediate Annuity (SPIA) provides the largest guaranteed lifetime income of any investment. Regarding "buying a SPIA in an IRA and using the payments for Required Minimum Distributions" this link should answer your question: Here’s The Ful...
by Call_Me_Op
Sat Dec 30, 2023 2:53 pm
Forum: Personal Finance (Not Investing)
Topic: 12% withdrawal rate?
Replies: 8
Views: 1826

Re: 12% withdrawal rate?

Our plan in retirement is to end with less (but not zero). Over the next ten years the value of our retirement accounts is supposed to decrease by about half. By then, expenses will be lower and Social Security will cover essentials. However, after recent gains the portfolio is not only well above our decreasing target path but is more than when I retired. Consequently, our dynamic withdrawal formula now has us cashing out at an annual rate of about 12% (spread quarterly). (The formula is simply the planned withdrawal amount plus 25% of the difference between the current portfolio value and the target portfolio value.) What are you doing to plan for possible long-term care expenses? It's tempting to believe that you will be spending a lot ...
by Call_Me_Op
Sat Dec 30, 2023 2:47 pm
Forum: Personal Investments
Topic: Investing for my parents in their 70s
Replies: 18
Views: 2323

Re: Investing for my parents in their 70s

Do you really think you should be investing your parent's money when you yourself are a novice? This sounds fraught with potential problems. Why not consider a low-cost advisory account with Vanguard?

Note also that everybody wants to invest when we just had a 25% year in the stock market. Lots of newbies get crushed (following a recent run-up) and end-up swearing-off stocks in the future.

I never get calls from relatives (looking to invest for the first time) after down years.
by Call_Me_Op
Sat Dec 30, 2023 11:39 am
Forum: Investing - Theory, News & General
Topic: REGISTRATION FOR THE 2023 BOGLEHEAD CONTEST
Replies: 672
Views: 41052

Re: REGISTRATION FOR THE 2023 BOGLEHEAD CONTEST

Ended in 3rd place. I should have taken my prediction seriously and put more in stocks. :sharebeer
by Call_Me_Op
Sat Dec 30, 2023 8:33 am
Forum: Personal Finance (Not Investing)
Topic: Basic Portfolio Depletion Question
Replies: 15
Views: 2034

Re: Basic Portfolio Depletion Question

Lots of factors to think about. From your overall health to SS claiming plan. Right now I withdraw more than 4% with the knowledge when I claim SS at 70 my required withdrawals will drop dramatically. You also need to think about RMDs and their impact on your portfolio. A SPIA can be a useful tool to reduce a portfolio and the impact of RMDs. But I would not put everything into a SPIA because of inflation and the potential to reduce my standard of living due to inflation. How does a SPIA help, when it provides income that is taxed just like RMDs? The issue with RMDs is not the taxation but the potential to put you into a higher tax bracket. The SPIA can be used to reduce the size of your IRA portfolio and therefore reduce the size of the R...
by Call_Me_Op
Sat Dec 30, 2023 8:07 am
Forum: Personal Finance (Not Investing)
Topic: Help me understand what “25x” means?
Replies: 23
Views: 4953

Re: Help me understand what “25x” means?

The X stands for residual living expenses - what you need after accounting for any pension, Social Security, or other income. You can think of it as an average residual living expense. The better way to do it is to simply sum, in today's dollars, what you will need between retirement start and end of life (use worst case). If you have those dollars at the start of retirement and achieve a positive real return, you should be in good shape. There is some oversimplification to what I said, but it's a good place to start.
by Call_Me_Op
Sat Dec 30, 2023 8:00 am
Forum: Investing - Theory, News & General
Topic: My appearance on Ralph Nader’s podcast where we discussed Jack Bogle and the Bogleheads
Replies: 2
Views: 1105

Re: My appearance on Ralph Nader’s podcast where we discussed Jack Bogle and the Bogleheads

Very nice - thanks Rick! Sounds like Ralph really appreciates what Jack stood for and accomplished.
by Call_Me_Op
Thu Dec 28, 2023 6:20 pm
Forum: Investing - Theory, News & General
Topic: What was the investment climate like in the bull market 10 years ago?
Replies: 55
Views: 7581

Re: What was the investment climate like in the bull market 10 years ago?

jyun wrote: Thu Dec 28, 2023 6:14 pm What was the investment climate like in the bull market 10 years ago?

In 2013, a decade ago, it seems the market consistently rose. Were you not apprehensive as it kept climbing? Did you opt for a more conservative investment approach, or did you persistently increase your allocation in US stocks?
The stock market climbs a wall of worry. It was no different 10 years ago.
by Call_Me_Op
Wed Dec 27, 2023 7:51 pm
Forum: Personal Finance (Not Investing)
Topic: Basic Portfolio Depletion Question
Replies: 15
Views: 2034

Re: Basic Portfolio Depletion Question

Golf maniac wrote: Wed Dec 27, 2023 6:31 pm Lots of factors to think about. From your overall health to SS claiming plan. Right now I withdraw more than 4% with the knowledge when I claim SS at 70 my required withdrawals will drop dramatically. You also need to think about RMDs and their impact on your portfolio. A SPIA can be a useful tool to reduce a portfolio and the impact of RMDs. But I would not put everything into a SPIA because of inflation and the potential to reduce my standard of living due to inflation.
How does a SPIA help, when it provides income that is taxed just like RMDs?
by Call_Me_Op
Wed Dec 27, 2023 7:30 pm
Forum: Personal Investments
Topic: Long term fixed income. Is it time?
Replies: 30
Views: 4367

Re: Long term fixed income. Is it time?

I hear you and others appreciate TIPS. I own a modest amount of TIPS in a tax-sheltered account but I have very little room for more. I'm in a 24% federal tax bracket so I question adding TIPS in my taxable brokerage account. Any thoughts? If I didn't have the tax-advantaged space, I would have bought them in taxable. I did buy a hefty amount of TIPS in taxable for family members who don't have enough, or the right kind of, tax-advantaged space. TIPS are no less tax efficient than nominal Treasuries in taxable; there is no state income tax, so that helps tax efficiency for those who pay state income tax. People worry about the "phantom income", but if you're going to reinvest the interest anyway, what difference does it make? You...
by Call_Me_Op
Wed Dec 27, 2023 5:41 pm
Forum: Personal Consumer Issues
Topic: Help - Locked Out of Gmail Account
Replies: 54
Views: 7117

Re: Help - Locked Out of Gmail Account

One of the big problems with Gmail is it is hard to reach anyone for help if you are having a problem. For the past few days, my primary 2FA has not been working but I am living with it for now because it is so hard to get help.
by Call_Me_Op
Wed Dec 27, 2023 4:43 pm
Forum: Personal Finance (Not Investing)
Topic: Basic Portfolio Depletion Question
Replies: 15
Views: 2034

Re: Basic Portfolio Depletion Question

LaurenRose wrote: Wed Dec 27, 2023 3:57 pm I am 63 and have been spending under 4%....wondering if I am too conservative, maybe live a little lol
You still did not answer my question (above) as to what you mean by 4%. I think you may be misinterpreting "the 4% rule."
by Call_Me_Op
Wed Dec 27, 2023 1:55 pm
Forum: Personal Investments
Topic: The Myth of "Owning the Market"
Replies: 84
Views: 12590

Re: The Myth of "Owning the Market"

LISD wrote: Tue Dec 26, 2023 7:12 pm
It seems to me that the "INDEX" should be rebalancing, just like it is recommended for individual investors, when certain sectors, etc get over-represented. What is your opinion on that?
No - because that is not what an index is supposed to do - at least if it is cap weighted.
by Call_Me_Op
Wed Dec 27, 2023 10:22 am
Forum: Personal Finance (Not Investing)
Topic: Basic Portfolio Depletion Question
Replies: 15
Views: 2034

Re: Basic Portfolio Depletion Question

This may be obvious to everyone but me, so I'd ask upfront for some understanding here with this question. I get the 4% withdrawal premise - about how much one can approximately withdraw on average, year over year, from a portfolio without completely depleting the portfolio during their lifetime of unknown length. If one is single and has already made planned distributions to heirs (no further planned legacy) - would you spend a bit more or less than an average, of 4%? Obviously we don't want to die broke (at least I don't want to lol) - but I also have no need to leave a bunch of money behind. At some point, I will likely annuitize the remainder and the rest will go (Medicare or Medicaid, please no interest in sidetracking on these topics...
by Call_Me_Op
Tue Dec 26, 2023 7:09 am
Forum: Investing - Theory, News & General
Topic: TIPS are too confusing. Are they really worth it versus using bond ETFs and Treasury notes for an IRA?
Replies: 20
Views: 3786

Re: TIPS are too confusing. Are they really worth it versus using bond ETFs and Treasury notes for an IRA?

VTIP has a 10 year avg return of 1.7. Does anyone think that they have experienced only 1.7 % inflation the past 10 years? Sorry Rick Ferri but I do not feel compelled to buy this. That's not how TIPS are supposed to work. They are subject to market forces - specifically real interest rates. They are not perfect instruments. Short-term TIPS or IBonds do a much better job of tracking inflation in real time. This is why you see people trying to time TIPS purchases. Sometimes they are a good deal, sometimes not. This is not a just a TIPS bond fund or ETF thing. If you had purchased a 10 year TIPS in 2019, it would be under water right now. These are important and oft-overlooked points. However, I will also add that a TIPS, unlike a TIPS fund,...
by Call_Me_Op
Tue Dec 26, 2023 6:28 am
Forum: Personal Investments
Topic: How Safe Is Fidelity Treasury Money Market?
Replies: 32
Views: 4588

Re: How Safe Is Fidelity Treasury Money Market?

1) If you view the fund page on Fidelity's website, you can click on "composition" and see what it holds, it only holds govt debt, and almost 60% of the fund holds US govt debt that matures in a week or less. If you can't trust the govt to pay their bills in the coming week, then you shouldn't trust this fund at all. I would argue most people on earth would consider US treasury bills one of the safest places to store money on the planet. 2) Yes it's generally competitive with HYSA's. In a rising rate environment, it will be quicker to adapt to the new higher rate, but in a falling rate environment, the HYSA would be slower to adapt to the new rate. It basically all evens out in the end. Also, even with 1yr of an EF, it won't be m...
by Call_Me_Op
Mon Dec 25, 2023 8:01 pm
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6658
Views: 1241535

Re: I Bonds Before Dec. 31?

Jack FFR1846 wrote: Mon Dec 25, 2023 7:51 pm $44? That's three 55+ 2x2x2 breakfasts with coffee at iHOP!
:sharebeer
by Call_Me_Op
Mon Dec 25, 2023 7:45 pm
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6658
Views: 1241535

Re: I Bonds Before Dec. 31?

z3r0c00l wrote: Mon Dec 25, 2023 7:44 pm
ivgrivchuck wrote: Mon Dec 25, 2023 7:41 pm
That's why if you cash out I-bonds before holding them for 5 years, you'll lose 3 months of interest. I believe that's exactly to prevent people from heavily exploiting the arbitrage.
Yes that wild extra .44% on $10,000 : )
Well, I see Bogleheads going out of their way for a lot less than that. :)
by Call_Me_Op
Mon Dec 25, 2023 7:44 pm
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6658
Views: 1241535

Re: I Bonds Before Dec. 31?

If I anticipate just one more purchase of two I Bonds (DW and I), does it matter if I complete the purchase prior to year end, or just complete the buy in January? Buy in Dec. You'll start the redemption clock running and you'll earn a full month's worth of interest. And you'll still have the 2024 purchase allowance available to you. Mel, This sounds like an arbitrage opportunity, since I can hold $10k in a MM fund for January and sell at the end of January to buy $10k in IBonds - effectively earning interest from two sources for that month. Am I missing something? That's why if you cash out I-bonds before holding them for 5 years, you'll lose 3 months of interest. I believe that's exactly to prevent people from heavily exploiting the arbi...
by Call_Me_Op
Mon Dec 25, 2023 7:25 pm
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6658
Views: 1241535

Re: I Bonds Before Dec. 31?

Mel Lindauer wrote: Mon Dec 25, 2023 7:05 pm
JDSwim3 wrote: Mon Dec 25, 2023 7:01 pm If I anticipate just one more purchase of two I Bonds (DW and I), does it matter if I complete the purchase prior to year end, or just complete the buy in January?
Buy in Dec. You'll start the redemption clock running and you'll earn a full month's worth of interest. And you'll still have the 2024 purchase allowance available to you.
Mel,

This sounds like an arbitrage opportunity, since I can hold $10k in a MM fund for January and sell at the end of January to buy $10k in IBonds - effectively earning interest from two sources for that month. Am I missing something?
by Call_Me_Op
Mon Dec 25, 2023 7:03 pm
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6658
Views: 1241535

Re: I Bonds Before Dec. 31?

Yes, in the sense that you get interest retroactively to the first day of the month in which you made the purchase.
by Call_Me_Op
Mon Dec 25, 2023 6:58 pm
Forum: Investing - Theory, News & General
Topic: TIPS are too confusing. Are they really worth it versus using bond ETFs and Treasury notes for an IRA?
Replies: 20
Views: 3786

Re: TIPS are too confusing. Are they really worth it versus using bond ETFs and Treasury notes for an IRA?

hoops777 wrote: Mon Dec 25, 2023 6:56 pm VTIP has a 10 year avg return of 1.7.
Does anyone think that they have experienced only 1.7 % inflation the past 10 years?
Sorry Rick Ferri but I do not feel compelled to buy this.
That's not how TIPS are supposed to work. They are subject to market forces - specifically real interest rates. They are not perfect instruments. Short-term TIPS or IBonds do a much better job of tracking inflation in real time. This is why you see people trying to time TIPS purchases. Sometimes they are a good deal, sometimes not.

This is not a just a TIPS bond fund or ETF thing. If you had purchased a 10 year TIPS in 2019, it would be under water right now.
by Call_Me_Op
Mon Dec 25, 2023 6:53 pm
Forum: Personal Investments
Topic: CD early withdrawal penalty for renewed CD
Replies: 15
Views: 1672

Re: CD early withdrawal penalty for renewed CD

mk_dan wrote: Mon Dec 25, 2023 3:16 pm Sending renewal/maturity notice by mail is by design. Banks do this so you forget and it auto-renews and locks you at a lower rate.
This is actually something that should be taken up by the Consumer Financial Protection Bureau. Sounds to me like a rather deceptive practice.

I usually take the notice, highlight the date, and hang the notice and on the wall by my computer. But it takes that special effort or I would forget.
by Call_Me_Op
Mon Dec 25, 2023 3:35 pm
Forum: Personal Investments
Topic: Decreasing bond exposure in retirement
Replies: 25
Views: 4437

Re: Decreasing bond exposure in retirement

I think at 75X, your AA should be determined by your willingness to take risk - which comes down to how you respond when stocks lose 50%-60% of their value - with no guarantee of recovery. This scenario, which tends to happen every now and then throughout an investing lifetime, limits the percentage I hold in equities.
by Call_Me_Op
Mon Dec 25, 2023 2:10 pm
Forum: Investing - Theory, News & General
Topic: TIPS are too confusing. Are they really worth it versus using bond ETFs and Treasury notes for an IRA?
Replies: 20
Views: 3786

Re: TIPS are too confusing. Are they really worth it versus using bond ETFs and Treasury notes for an IRA?

There are differing opinions. Those who advocate TIPS rightfully point-out that they are the only way to match assets to liabilities on an inflation-adjusted basis. But they are by no means mandatory, and are not expected to do any better than nominal treasuries.

I take an "all-of-the-above" fixed income approach - so I have some TIPS in a fund in my retirement account. But I do not have a TIPS ladder and don't think I need that added complexity. Plus I have no good place to put individual TIPS'.
by Call_Me_Op
Mon Dec 25, 2023 12:17 pm
Forum: Personal Consumer Issues
Topic: Hair cracks on ceiling
Replies: 24
Views: 2956

Re: Hair cracks on ceiling

I think you see that is all houses. It is minor settling.
by Call_Me_Op
Mon Dec 25, 2023 12:11 pm
Forum: Personal Investments
Topic: CD early withdrawal penalty for renewed CD
Replies: 15
Views: 1672

Re: CD early withdrawal penalty for renewed CD

sport wrote: Sun Dec 24, 2023 5:31 pm This is why I have gone entirely to brokered CDs. As we age, it becomes too easy to miss the renewal notice and get sucked into an undesirable auto-renew. With brokered CDs, this is not a concern as the money goes into the settlement fund and waits for you to take action.
Indeed. People often fall into the trap of being concerned about the market value of the brokered CDs - which is irrelevant unless you want to sell early. But with confiscatory early withdrawal penalties like the OP's CD, brokered is definitely a better route.
by Call_Me_Op
Mon Dec 25, 2023 12:06 pm
Forum: Personal Investments
Topic: Suggest a good simple basket of ETFs for long term
Replies: 30
Views: 5653

Re: Suggest a good simple basket of ETFs for long term

Would you really commit to a basket of ETFs that someone else recommended to you? I wouldn't. I'd want to do my own research and thinking over a period of time and come to my own conclusion. Only then would I have any chance of sticking with the allocation through the inevitable market turbulence. I agree. For the same reason even to begin research its good to have starting point and learn more about what types of ETFs are there. Many folks here have already been through this and they know of very many ETFs and strategies they have tried. Surely I will need to decide for myself and not intending to blindly copy anything done by anyone. At the same time, I am open to learning some of the methods people have tried. Sounds good. The one piece...
by Call_Me_Op
Mon Dec 25, 2023 11:53 am
Forum: Personal Investments
Topic: asset allocation first 5 years of retirement
Replies: 9
Views: 1574

Re: asset allocation first 5 years of retirement

I don't really distinguish between cash and bonds. If I were to do that, then how would I categorize Tbills? Both cash and bonds are fixed income. (Cash is a bond with zero duration.) So if I were 60/40, 60% would be stocks and 40% would be some mix of fixed income. Some people like to segregate cash as a separate bucket. I have no problem with that, but it really is "mental accounting." Regardless of how you look at it, you should have some cash - even if only a few months.
by Call_Me_Op
Mon Dec 25, 2023 8:59 am
Forum: Investing - Theory, News & General
Topic: The murky path to figuring out if you are saving enough
Replies: 30
Views: 4752

Re: The murky path to figuring out if you are saving enough

Whatisenough wrote: Mon Dec 25, 2023 8:48 am
skipper wrote: Wed Dec 20, 2023 11:28 pm … Likewise, an investor/saver should ask, "How little can I spend to be satisfied?" Figure that out, spend it, save the rest, and you'll know you are saving enough.
This is the way.
Agreed - saves me the trouble of articulating the same thing. Growing-up without a plug nickel makes this approach quite natural.
by Call_Me_Op
Sun Dec 24, 2023 3:54 pm
Forum: Investing - Theory, News & General
Topic: A Christmas Message
Replies: 140
Views: 14663

Re: A Christmas Message

Bogleheads: When we arrived in Bastogne, Belgium a few days before Christmas 1944, I was ordered to dig my foxhole in the front yard of a large house. I immediately started digging with my combination pickaxe and shovel until I had a 4 foot deep rectangular hole in which to fight and sleep. It was very cold and snowing. This was my home for nearly 3 weeks while the Germans encircled us. I soon learned that the house was the home of a prominent Belgian family named Steveler . I understand the house is still pock-marked with bullets and artillery damage which sheltered me from enemy gunfire. I befriended two Steveler children--a boy and a girl about 6 and 7 years old. Each morning they would bring me hot cocoa and a warm bun made in the cell...
by Call_Me_Op
Sun Dec 24, 2023 12:24 pm
Forum: Investing - Theory, News & General
Topic: A Christmas Message
Replies: 140
Views: 14663

Re: A Christmas Message

Merry Christmas Taylor! I continue to be awed by you. I appreciate your service to this community and especially to our country.