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Re: Rules of thumb that shouldn't be

From Wikipedia, the free encyclopedia

A rule of thumb is a principle with broad application that is not intended to be strictly accurate or reliable for every situation. :beer
by Abe
Fri Jul 25, 2014 2:52 pm
 
Forum: Investing - Theory, News & General
Topic: Rules of thumb that shouldn't be
Replies: 30
Views: 2569

Re: Mortgage Prepayment Question

my original loan was over 300K, and the interest rate is 3.5%. I made a substantial prepayment mid month (July 08) ~$100K - almost half of the remaining loan. I thought my interest payment on my next month's (August) mortgage statement should reduce at least several hundred dollars, but it did not ...
by Abe
Thu Jul 24, 2014 6:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: Mortgage Prepayment Question
Replies: 41
Views: 2529

Re: Cheap Wall St Journal?

I had a friend who subscribed to the WSJ. He would bring them to me after he read them. As I remember, there was not much in it that I was interested in reading. I finally told him to stop bringing them.
by Abe
Wed Jul 23, 2014 5:45 pm
 
Forum: Personal Consumer Issues
Topic: Cheap Wall St Journal?
Replies: 64
Views: 7985

Re: If you own a car, do you have a car payment?

I have never made a car payment. I didn't even own a car until the early eighties. Before that, I drove pickup trucks. That way I could kill two birds with one stone: use it for my business or personal use. :beer
by Abe
Wed Jul 23, 2014 4:25 pm
 
Forum: Personal Consumer Issues
Topic: If you own a car, do you have a car payment?
Replies: 112
Views: 6893

Re: I'm a genius!

Several years ago, my wife's sister had some money to invest, and she asked me where I thought she should invest it. I recommended one of the Vanguard Life Strategy funds. Well, she picked two, the Life Strategy Growth and the Life Strategy Moderate Growth. I thought she should have picked only one ...
by Abe
Wed Jul 23, 2014 2:51 pm
 
Forum: Investing - Theory, News & General
Topic: I'm a genius!
Replies: 19
Views: 5143

Re: POLL: Walmart vs Amazon

Walmart is a profitable business. Amazon is not. It is my understanding that Amazon doesn't make a profit and never has. If they do, it's very little. I'm certainly not an expert in these matters, but the only way I see for them to make a profit is to cut expenses or raise prices or both. They alrea...
by Abe
Thu Jul 17, 2014 4:23 pm
 
Forum: Personal Consumer Issues
Topic: POLL: Walmart vs Amazon
Replies: 137
Views: 8041

Re: If interest rates would ever reach double digits again

I knew someone who told me they bought 30 year treasury bonds yielding around 16% in the late 70's or early 80's. I'm not sure about the exact rate, but it was somewhere in that neighborhood.
by Abe
Thu Jul 17, 2014 3:11 pm
 
Forum: Investing - Theory, News & General
Topic: If interest rates would ever reach double digits again
Replies: 36
Views: 3005

Re: Inherited a promissory note--what to do?

I am not a lawyer. Anything I tell you is from my personal experience only and not legal advise. I am assuming that you only have a promissory note and no collateral such as a mortgage or some other security instrument. A promissory note is only the borrowers promise to pay. If all you have is the p...
by Abe
Wed Jul 16, 2014 11:54 am
 
Forum: Personal Finance (Not Investing)
Topic: Inherited a promissory note--what to do?
Replies: 22
Views: 2419

Re: POLL: Walmart vs Amazon

There is a lot of anti-Walmart sentiment out there. Some may be justified, but I think most of it is not. Walmart does what they do according to their business plan, and some bad things happen as a result of that, such as small businesses going out and small towns drying up. I had a small business a...
by Abe
Sat Jul 12, 2014 1:56 pm
 
Forum: Personal Consumer Issues
Topic: POLL: Walmart vs Amazon
Replies: 137
Views: 8041

Re: POLL: Walmart vs Amazon

I buy a lot more from Walmart than Amazon because of shipping charges, convenience and return policy. Example: I bought a watch from Walmart about 3 months ago. It quit keeping good time, so I took it back and they gave me another one, no questions asked. We go to Walmart about once a week. Most of ...
by Abe
Sat Jul 12, 2014 11:38 am
 
Forum: Personal Consumer Issues
Topic: POLL: Walmart vs Amazon
Replies: 137
Views: 8041

Re: What ONE investing book or article for skeptical sibling

I agree with Grt2bOutdoors. "The Little Book of Common Sense Investing" by John C Bogle or

"The Elements of Investing" by Burton G Malkiel & Charles D Ellis
by Abe
Thu Jul 10, 2014 6:07 pm
 
Forum: Investing - Theory, News & General
Topic: What ONE investing book or article for skeptical sibling?
Replies: 30
Views: 2868

Re: How I look at $ in the real world vs my retirement accou

It is interesting. A different slant on money depending on the circumstance. If you have ever been in a casino, you tend to get a distorted view of money. The casinos work hard to make it that way. They give you chips in place of money. You're not losing real money; it's only chips. Sort of reminds ...
by Abe
Wed Jul 09, 2014 5:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: How I look at $ in the real world vs my retirement accounts
Replies: 45
Views: 5786

Re: How I look at $ in the real world vs my retirement accou

We expect that money invested will be more money later, otherwise there is no reason to do it. We also accept that this money will fluctuate in value along the way. So we haven't really lost anything; it's just part of the price we pay to have more later. Money spent on something we consume is money...
by Abe
Wed Jul 09, 2014 4:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: How I look at $ in the real world vs my retirement accounts
Replies: 45
Views: 5786

Re: How many veteran investor have LARGE MAJORITY in three-f

I would like to get my portfolio as close as possible to the 3 fund portfolio, but I am a long way from that now. Over the years, I invested whenever I had a little money and there was no overall plan. The result was a mixed bag of investments. For various reasons including the capital gains tax, I ...
by Abe
Tue Jul 08, 2014 6:05 pm
 
Forum: Investing - Theory, News & General
Topic: How many veteran investor have LARGE MAJORITY in three-fund?
Replies: 56
Views: 3822

Re: Homeowner responsibility for water service line

As to the other poster, I will guess what they mean. (1) If my water company had to repair their side of the meter, for instance from the main line through my driver to my meter, they would repair customer and public property... If a utility has a right of way through your property it becomes your ...
by Abe
Mon Jul 07, 2014 7:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: Homeowner responsibility for water service line
Replies: 45
Views: 2054

Re: Homeowner responsibility for water service line

Where I live the homeowner is only responsible for the water line from the meter to the dwelling. If there is a leak on the other side of the meter (from the meter to the main line) the Water Company is responsible for repairing that. . Just curious, if that leak happens to be under a building or o...
by Abe
Mon Jul 07, 2014 5:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: Homeowner responsibility for water service line
Replies: 45
Views: 2054

Re: Homeowner responsibility for water service line

This is a way to detect water leaks. Turn all the water off in the house then look at the water meter. If the dial is moving, there is water going through the meter. If everything is off in the house, there is a leak somewhere. Nope. All that does is tell you that there IS a leak. The commenter alr...
by Abe
Mon Jul 07, 2014 3:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: Homeowner responsibility for water service line
Replies: 45
Views: 2054

Re: Homeowner responsibility for water service line

This is a way to detect water leaks. Turn all the water off in the house then look at the water meter. If the dial is moving, there is water going through the meter. If everything is off in the house, there is a leak somewhere.
by Abe
Mon Jul 07, 2014 11:17 am
 
Forum: Personal Finance (Not Investing)
Topic: Homeowner responsibility for water service line
Replies: 45
Views: 2054

Re: Homeowner responsibility for water service line

This is the way it works in my area and I'm sure most other areas as well. The home owner is responsible for the water line from the water meter to the dwelling. Prior to the 1970's, a lot of water lines were made of lower quality material. My own house (built in the 1970's) continued to have period...
by Abe
Sun Jul 06, 2014 7:01 pm
 
Forum: Personal Finance (Not Investing)
Topic: Homeowner responsibility for water service line
Replies: 45
Views: 2054

Re: Mortgage with private financing

jjg247 wrote:Abe, any sites you could reccomend to research the private mortgage market? I never even knew this existed.


You can go here for information:

http://papersourceonline.com/faqs/#axzz36jIXiFqK
by Abe
Sun Jul 06, 2014 6:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: Mortgage with private financing
Replies: 8
Views: 548

Re: investing and debt

There are two kinds of debt. One is what I call consumer debt (credit cards, etc). In other words borrowing money to buy things you consume. The other kind of debt is borrowing for investment or borrowing money to make more money (using leverage, etc). To me consumer debt is the worst kind of debt. ...
by Abe
Sat Jul 05, 2014 12:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: investing and debt
Replies: 22
Views: 1428

Re: Mortgage with private financing

Mortgages can be sold. There is a market for privately financed mortgages. There will be a discount involved, but the lender (mortgagee) can sell the mortgage for cash. He can even sell part of the payments for cash and keep the remaining payments. Most of the time these are owner financed mortgages...
by Abe
Sat Jul 05, 2014 11:14 am
 
Forum: Personal Finance (Not Investing)
Topic: Mortgage with private financing
Replies: 8
Views: 548

Re: investing/personal finance as competitive sport

Competitive Sport? I'm plum serious about it. :happy
by Abe
Thu Jul 03, 2014 5:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: investing/personal finance as competitive sport
Replies: 17
Views: 1411

Re: Who do you talk with about your financial goals?

You care about issues that affect you.

Others care about issues that affect them.

That's just the way it is. :beer
by Abe
Thu Jul 03, 2014 9:46 am
 
Forum: Personal Finance (Not Investing)
Topic: Who do you talk with about your financial goals?
Replies: 158
Views: 9080

Re: Who do you talk with about your financial goals?

No one, except occasionally my cat. I just want to reassure him that he won't have to share his daily rations. I skip the details because he has no interest and trusts me to stay the course. For that effort, he is content and sleeps well. So do I. As a cat owner myself, I can fully appreciate your ...
by Abe
Tue Jul 01, 2014 11:13 am
 
Forum: Personal Finance (Not Investing)
Topic: Who do you talk with about your financial goals?
Replies: 158
Views: 9080

Re: Want to Save Money? Be Polite!

My mother used to say "you catch more flies with honey than vinegar". She was right about that. If you are nice to people, they will be nice to you, sometimes even going out of their way to be nice. It's just common sense. I've always tried to do that, and it works. :happy
by Abe
Fri Jun 27, 2014 11:51 am
 
Forum: Personal Consumer Issues
Topic: Want to Save Money? Be Polite!
Replies: 41
Views: 6684

Re: Want to Save Money? Be Polite!

"One coffee" .....................................7 Euros "One coffee, please"............................4.25 Euros "Good morning! One coffee please" ....... 1.40 Euros "Good morning! One coffee please and thank you"....1.00 Euros :wink: (curtsy when you say ...
by Abe
Wed Jun 25, 2014 11:15 am
 
Forum: Personal Consumer Issues
Topic: Want to Save Money? Be Polite!
Replies: 41
Views: 6684

Re: Why buy a car with cash?

As I remember, the way it used to work was you had a choice. You could get zero or low rate financing but no rebate, or you could pay cash and get the rebate. I have not bought a new vehicle in a while so I don't know if it's still that way or not. In effect, the rebate that you did not receive if y...
by Abe
Tue Jun 24, 2014 12:45 pm
 
Forum: Personal Finance (Not Investing)
Topic: Why buy a car with cash?
Replies: 83
Views: 6087

Re: Found an old deposit receipt for my late wife . . .

As someone who currently works at a credit union... (1) If you have not received a statement recently, you do not have an active account. (2) If they cannot access an account using a social security number, you do not have an active account. (3) The laws of escheat would apply if the account was ov...
by Abe
Tue Jun 24, 2014 10:39 am
 
Forum: Personal Finance (Not Investing)
Topic: Found an old deposit receipt for my late wife . . .
Replies: 27
Views: 3812

Re: Would you check my math? annual vs. monthly payment

The way I understand it, you are paying $1,744.50 now to save $151.50 for 12 months.
If the payment is at the end of each period I get 7.69%
If the payment is at the beginning of each period I get 9.11%
I Think :happy
by Abe
Mon Jun 23, 2014 10:42 am
 
Forum: Investing - Help with Personal Investments
Topic: Would you check my math? annual vs. monthly payment
Replies: 14
Views: 1177

Re: Would you check my math? annual vs. monthly payment

I don't know the interest rate or the term of the loan, but assuming the interest rate on the $151.50 payment is 4% and the term is 30 years (360 monthly payments) then that would amortize $31,733.00. If you made annual payments of $1,744.50 on $31,733.00 for 30 years the interest rate would be 3.59...
by Abe
Sun Jun 22, 2014 4:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: Would you check my math? annual vs. monthly payment
Replies: 14
Views: 1177

Re: I cannot make the jump and retire

I have been trying to retire for at least a year but I don't have the courage to make the jump. Turned 49 this year. The sad truth is that I get some enjoyment from watching my net worth grow every year. But I just feel burnt out. How did you make the jump and quit your job ? How long did it take b...
by Abe
Sun Jun 22, 2014 2:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: I cannot make the jump and retire
Replies: 73
Views: 8075

Re: [can you] shop at Costco [without a membership?]

At one time I had a Sams Club membership card because I bought for my small business and bought enough to justify the cost of the card. I no longer own this business, so I only go to Sams once or twice a year now. I just went to the Sams Club website and I see that you can go to their site and print...
by Abe
Fri Jun 20, 2014 11:25 am
 
Forum: Personal Consumer Issues
Topic: [can you] shop at Costco [without a membership?]
Replies: 68
Views: 4809

Re: Do you see profit or ponzi?

It's very important to learn what to invest in.

It's also very important to learn what NOT to invest in.
by Abe
Thu Jun 19, 2014 10:31 am
 
Forum: Investing - Theory, News & General
Topic: Do you see profit or ponzi?
Replies: 100
Views: 7073

Re: To stay a Boglehead, I have to leave Bogleheads.org

Levett wrote:I don't read this site for "advice."

I read it because I enjoy observing how some people approach a problem.

It's the minds at work that provide the pleasure. 8-)

Lev


Good point. :beer
by Abe
Wed Jun 18, 2014 2:44 pm
 
Forum: Investing - Theory, News & General
Topic: To stay a Boglehead, I have to leave Bogleheads.org
Replies: 56
Views: 6104

Re: To stay a Boglehead, I have to leave Bogleheads.org

Bogleheads follow a few simple investment principles. Once you get the basics down, what else is there to learn? Having said that, I find myself continuing to come back to this site. I think part of it is because I can't discuss my financial situation with people I know, but I can here because I'm a...
by Abe
Wed Jun 18, 2014 2:14 pm
 
Forum: Investing - Theory, News & General
Topic: To stay a Boglehead, I have to leave Bogleheads.org
Replies: 56
Views: 6104

Re: [can you] shop at Costco [without a membership?]

I used to have a membership card for Sams, but I eventually dropped it because I was not buying enough there to justify the cost of the card. Occasionally if I need an item from them, I borrow a friends card and use it. My friend does not have to go with me. When I go in I just hold the card up and...
by Abe
Tue Jun 17, 2014 6:37 pm
 
Forum: Personal Consumer Issues
Topic: [can you] shop at Costco [without a membership?]
Replies: 68
Views: 4809

Re: [can you] shop at Costco [without a membership?]

I used to have a membership card for Sams, but I eventually dropped it because I was not buying enough there to justify the cost of the card. Occasionally if I need an item from them, I borrow a friends card and use it. My friend does not have to go with me. When I go in I just hold the card up and ...
by Abe
Tue Jun 17, 2014 6:14 pm
 
Forum: Personal Consumer Issues
Topic: [can you] shop at Costco [without a membership?]
Replies: 68
Views: 4809

Re: Made the $5 million club, but...

Been waiting and working for literally a lifetime to hit that milestone (I'm 58 1/2 years old). Interestingly, I thought I'd commemorate the moment with a nice dinner. Instead, all I felt was...sad. You've been working your whole life to reach this milestone and now that you have arrived, it's not ...
by Abe
Tue Jun 17, 2014 11:27 am
 
Forum: Personal Finance (Not Investing)
Topic: Made the $5 million club, but...
Replies: 43
Views: 6991

Re: Strategies for Saving

What I did was save anything left over after living expenses. This worked for me, but for most people I think it would be better if they did just the opposite. Pay yourself first. From the Richest Man in Babylon: "A part of all you earn is yours to keep. It should be not less than a tenth no ma...
by Abe
Mon Jun 16, 2014 5:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: Strategies for Saving
Replies: 19
Views: 2096

Re: White coat investor: you're not as rich as you think you

I agree with the OP: There is nothing new here. We already know the market can drop 50% or more. We already know that we are not brilliant investors assuming we invest the Boglehead way. It's not like were trying to beat the market. We already know not to try to time the market. Why are you not as r...
by Abe
Mon Jun 16, 2014 10:59 am
 
Forum: Investing - Theory, News & General
Topic: White coat investor: you're not as rich as you think you are
Replies: 21
Views: 4876

Re: The Biology of Risk

"Know Thyself" :beer
by Abe
Sat Jun 14, 2014 1:51 pm
 
Forum: Investing - Theory, News & General
Topic: The Biology of Risk
Replies: 91
Views: 4404

Re: Is life insurance needed?

+1 that's what I'm thinking, why does a 30 year old, single guy in great health with no debt need life insurance? You are correct, I do not need it. SGLI is prudent while I am Active Duty because it covers traumatic injury as well. Once I leave AD, I will need to replace the policy because I will h...
by Abe
Fri Jun 13, 2014 1:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: Suckered Into Whole Life -- What To Do?
Replies: 33
Views: 3260

Re: Is the first million really the hardest?

Absolutely, assuming everything else being equal. When accumulating the first million, you start with zero. The only thing working for you is yourself. When accumulating the second million, you start with one million which works for you along with yourself. "Every gold piece you save is a slave...
by Abe
Thu Jun 12, 2014 11:57 am
 
Forum: Investing - Help with Personal Investments
Topic: Is the first million really the hardest?
Replies: 64
Views: 7760

Re: Example of Financial Porn

A bundle well worth the $5,000 a year any high-end advisory charges… Yet for the next 24 hours, you only pay a generously discounted $199 for one full quarter of Turner Analytics. Or for an even better deal — you can subscribe to an entire year for only $699.. But I only guarantee this absurdly low ...
by Abe
Tue Jun 10, 2014 6:28 pm
 
Forum: Investing - Theory, News & General
Topic: Example of Financial Porn
Replies: 11
Views: 1205

Re: The 2 comma paradox

I think this discussion is helpful if there are people who believe that once they reach a certain point financially, things will be different, such as less worry. I know I thought that way, but I found it was a fallacy. So if there are others who are looking forward to "arriving" then this...
by Abe
Tue Jun 10, 2014 10:59 am
 
Forum: Personal Finance (Not Investing)
Topic: The 2 comma paradox
Replies: 155
Views: 14293

Re: The 2 comma paradox

Prepare yourself for worst case scenario, 50% loss of 1M is 500K, 50% loss of 5M is 2.5M, % wise same thing but in absolute terms huge difference, rebuilding 2.5M may take years, so manage your risk profile carefully, everyone talks about % allocation in this or that, but we need to look at losses ...
by Abe
Mon Jun 09, 2014 6:22 pm
 
Forum: Personal Finance (Not Investing)
Topic: The 2 comma paradox
Replies: 155
Views: 14293

Re: Poll: Luxury and Happiness

2000 minutes for an entire year for $80 with Pageplus (Verizon Network) minus $0.50 fee a month. So really, 1850 minutes for an entire year for $80. With Pageplus you can get your costs as low as $30 a year (if you can live off of 240 minutes). Or, you could use freedompop and get a free small talk/...
by Abe
Mon Jun 09, 2014 3:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: Poll: Luxury and Happiness
Replies: 141
Views: 8106

Re: The 2 comma paradox

I thought that when I reached a certain point financially, I wouldn't have anything to worry about.
I found that this was a fallacy. Having some money is nice to have, but if you worried before you had it, you will probably worry after you get it. There is no silver bullet.
by Abe
Sun Jun 08, 2014 7:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: The 2 comma paradox
Replies: 155
Views: 14293

Re: Our simple retirement plan.

So what happened? We simply withdrew what we needed and kept an eye on our portfolio balance. Most years our balance went up and we spent the money on vacations, luxuries and charity. When our balance went down we tightened our belt and economized. This is what most people do and it works. Like a l...
by Abe
Fri Jun 06, 2014 1:32 pm
 
Forum: Investing - Theory, News & General
Topic: In what ways does a retired person's portfolio differ?
Replies: 88
Views: 8018
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