Recent content by DangerDad

Taking a bigger picture view: From 1926-2021, a 100% bond portfolio had an average annual return = 6.3%. I won’t try to talk you out of feeling bad about a 10 year rate of return for bonds = 1.61. That sucks. But moving forward, remember that one of the most dependable rules in investing is...

Taxable account in California: For stocks consider VTCLX For bonds consider VCADX

Probably we’ve all heard the phrase: if you’re retired and you’ve won the game, any asset allocation from 100% bonds to 100% is acceptable. I’ve seen and heard this multiple times but didn’t realize there were many folks who actually choose one of these extremes. I like the above graph—I...

+1 In every market environment there will be folks who predict doom and gloom for this or that asset class. It’s true, the pessimists often sound smart, but remember the wisdom of Yogi Berra, who once said: “It’s tough to make predictions, especially about the future.” For this group of...

There was no S&P 500 prior to 1957. Looks like the S&P 90 was used to track equity markets from 1926-1957. Prior to 1926..? I’m not sure—I found conflicting info. So when someone talks about the total return of the S&P 500 from 1920 to 2023, it’s fair to ask: what exactly are you using to...

>>I'm leery of bond funds, because IF rates have peaked and do start to fall so will the bond funds.<< Don’t bond funds and rates move in opposite directions?

I believe you’re correct: With a 10% difference in marginal tax rate (12 vs 22%) it seems very likely that Roth conversions would be a good idea. However I’m not sure that the time element (how many years elapse between now and later) is irrelevant. Money has a “time value” such that a dollar...

Yes, I think most people understand that an 8 or 10 % projected difference in marginal tax rate would favor Roth conversions. The examples you used don’t apply to me but your point is well taken.

We haven’t done Roth conversions because of a high marginal tax rate due to a pension. It’s likely RMD’s will push us to a higher bracket but not enough difference to make Roth worthwhile. Those RMD’s are 14 years away—and who knows, they may get extended even further.

Great points regarding age and tax status. Everyone knows that $3M Roth IRA is more valuable than $3M tIRA or 401k yet they are weighted equally in terms of “portfolio size.” Another important factor is expenses or withdrawal rate. A $3M portfolio may appear solid but if you’re withdrawing...

I’ve been with Vanguard for a long time so I must admit there’s a comfort factor based on familiarity. Regarding service, I haven’t had significant problems—but this could be related to my rare need for service. Almost everything can be done via the app. Having said all that, I’ll take a look at...

My 401k and Keogh are at Schwab. Taxable brokerage at Vanguard. I’ve considered rolling over from Schwab to Vanguard in order to streamline—I value simplicity. On the other hand, I like the Schwab funds and those assets are happy and cozy over there. At this point I’ve decided to leave well...

+1 I track various financial metrics—including NW. However this is one of the least important metrics (for me) because it’s not actionable. Instead, I focus on Total Investable Assets (TIA) because it’s more actionable, more useful. For example, TIA is used to calculate one’s withdrawal rate...

There are different ways to quantify and appreciate the value of one’s pension. Personally I don’t consider my pension to be part of my Net Worth. My preference is to calculate and compare my Number and Withdrawal Rate with versus without the pension-income. To me this is the most sensible...

I think a lot of folks have anxiety related to $/investments/NW for a variety of reasons, and especially near/during retirement. I’m not familiar with anxiety directly related to increasing net worth, however I appreciate OP sharing his situation with us. I would encourage him to examine this...