Bob Brinker Free Discussion Site 59,820+

Top 451. Aug 1, 2005 3:24 PM

» bigla - Where is everyone?

I am not a poster but a reader/lurker and haven't seen a post since 7/28 - despite BB being on this weekend. I did not see a redirect to a new thread. Where is everyone?
Larry

-- posted by bigla

Top 452. Aug 1, 2005 6:19 PM

» allancoleman - Re: Competitive Surfer Aged 71 with Cash To Burn

In response to Competitive Surfer Aged 71 with Cash To Burn posted by Kirk:

hi Kirk ,

sorry for the delay in getting back to you on your question but i was out of town and dealing with real estate issues last week .

no , i don't know the 71 year old surfer from Maui that called Terry Savage . i do have a friend on Maui caught up in the real estate bubble though . his three bedroom , two bath ranch house in Kehei that he paid $300k for is now worth over $800k and the taxes are about to eat him up . this friend has a teen age son who is surfing professionally and get paid pretty good money , for a kid , to surf . probably later , after the kid graduates from high school and can travel , he'll get paid more to travel round the world and surf .

i do know several older surfers who surf on the west side of the big island . most of the locals who have to hold down a job and work , usually surf early before 8:00 a.m in order to get their surfing in before reporting to work . one guy i know has a screen message on his cell phone that reads , " surf B4 work " . i usually see this crowd as i usually show up at the beach about 7:30 a.m. just as they are catching their last few sets and i'm getting set up for my shift on the waves . i usually surf from 7:30 a.m. until 9:30 a.m. when the life guards set up their stand when the usual tourist " haole " crowd shows up . i usually leave about that time cause the water gets pretty crowded and the sun's getting pretty hot about that time .

Terry's supposed to be on this upcoming weekend i think . ? ?

p.s. air & water temps were 84 in kona this last week . smile . and + - 50 degrees here now in alaska . sad . water , of course here , is much colder year round .

-- posted by allancoleman

Top 453. Aug 2, 2005 7:51 AM

» kenp11 - Critical Mass Rebalance

I am in 95% equities and have reached critical mass and need to re-balance my portfolio. Does anyone have a good strategy to rebalance into bonds? I know that bonds mat take a hit and lose their NAV price when interest rates rise.
I have about 50% in IRA/401k.
Which is the best way to go to increase my bond side without taking a hit?
GNMA fund? Term bond? Stable value asset fund?

-- posted by kenp11

Top 454. Aug 2, 2005 8:48 AM

» bob90245 - Re: Critical Mass Rebalance

In response to Critical Mass Rebalance posted by kenp11:

What is your target stock:fixed allocation? Do you want to go to 50:50? Do you have a stable value fund in your 401k? Can you give a percentage breakdown what your asset location is (401k/ira/taxable)? Not enough info to make a recommendation. Also, what is your age? Will Required Minimum Distributions (RMDs) at age 70.5 be an issue (if you're in a high tax bracket)?

-- posted by bob90245

Top 455. Aug 2, 2005 9:15 AM

» solarblast - Brinker's Phantom Fund Notion

Perhaps someone knows the answer, or maybe it's archived somewhere, about the concept of a phantom fund that BB talks about on occasion. The idea is that if you get $1000.00 /year in retirement, how much would your company need to keep on hand to pay you that amount. Assuming a 5% gain the amount would be $20K. Now my question is how does one use that in connection with what percentage of stocks and bonds (fixed income) you should have?

For example, suppose your phantom fund is really $200K, and you are 65, retired. According to the so-called rule of thumb he sometimes cites that you should be in fixed funds in proportion (percent) to your age, and stock to (100-age)%, then does the $200K contribute to this calculation? It seems like it should. So, for example, if you have $450K in GNMAs and $350K in some S&P index fund, your investments are--total: 200K(phantom)+450K(gnma)+350K(stock), fixed: 65% stock: 35%. Agreement with the rule. Would that be the way BB considers it? If not, then--total: 800K, fixed: 56% and stock:44%, which would be in diagreement with the rule. I'm not questioning the rule, just the use of the phantom fund notion in calculations of fixed vs stock investments. I don't think I've heard him talk about these details.

Is this notion particular to Brinker or does someone else describe it?

-- posted by solarblast

Top 456. Aug 2, 2005 9:35 AM

» solarblast - Cisco

Has Brinker offered any opinion on Cisco recently?

-- posted by solarblast

Top 457. Aug 2, 2005 9:44 AM

» allancoleman - Re: Cisco

In response to Cisco posted by solarblast:

no . and bob usually doesn't give opinions on specific stocks .

-- posted by allancoleman

Top 458. Aug 2, 2005 9:48 AM

» allancoleman - Re: Critical Mass Rebalance

In response to Critical Mass Rebalance posted by kenp11:

i have a stable value fund in my 401(k) that NEVER loses n.a.v. so that's what i'm using for my fixed income asset allocation while waiting for the n.a.v. of some of my favorite fixed income mutual funds to come down .

-- posted by allancoleman

Top 459. Aug 2, 2005 10:00 AM

» allancoleman - Re: Brinker's Phantom Fund Notion

In response to Brinker's Phantom Fund Notion posted by solarblast:

you have bob's " phantom asset " idea correct . what i've found interesting in that in the past in the secular bull market , bob used this to increase one's stock market allocation . in recent discussions though , bob doesn't like that idea anymore and has been advising people in retirement to go with a balanced ( 50 / 50 ) portfolio NOT counting any phantom assets . which means that when you throw phantom assets into your total portfolio asset allocation , you're going to come up with LESS than a 50 / 50 mix .

course lately bob has been so bullish on the market , when he has been asked a specific question by some callers , bob has suggested over weighting on the stock side for now and to not be in a hurry to get down to a 50 / 50 mix .

when pressed by a caller , bob usually says to go with what makes you comfortable . and if you're a few percent one way or the other , won't matter in this ever changing market .

-- posted by allancoleman