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Re: Does Asset Allocation beat the S&P 500?

It all boils down to risk. Stocks are riskier than bonds, so generally speaking, they should produce higher returns long term. The question is, can you hang on to the roller coaster?
by Abe
Tue Apr 22, 2014 11:14 am
 
Forum: Investing - Theory, News & General
Topic: Does Asset Allocation beat the S&P 500?
Replies: 74
Views: 3301

Re: Does Asset Allocation beat the S&P 500?

I don't know about smart people, but I can think of two reasons: One is risk as you mentioned. Although in the long term the trend is up for the S & P 500 or Total Stock Market, they can lose 50% or more of their value at times. Also, there are times when bonds and other asset classes do better ...
by Abe
Tue Apr 22, 2014 10:37 am
 
Forum: Investing - Theory, News & General
Topic: Does Asset Allocation beat the S&P 500?
Replies: 74
Views: 3301

Re: What % of stock market "drive" is gambling?

The way I see it, any investment that can be measured (discounted back to a present value) is an investment vs speculation. In order to be measured, it has to produce something that can be measured, earnings, profit, rent or what ever you want to call it. Gold and silver do not produce income, so I ...
by Abe
Mon Apr 14, 2014 1:09 pm
 
Forum: Investing - Theory, News & General
Topic: What % of stock market "drive" is gambling?
Replies: 36
Views: 3475

Re: advisor advice?

does Vanguard offer this service and for now would it be smart for me to use this service? thanks for any replies or advise. Vanguard offers this service and I think it would be to your benefit to use it. The cost is very reasonable. You can go here for information on their advisory service and fee...
by Abe
Sun Apr 13, 2014 4:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: advisor advice?
Replies: 25
Views: 1554

Re: Wait for better tenant application or approve the one I

I basically agree with most of the other posters. I usually do a one year lease with my tenants and then it automatically goes to a month to month unless we renew the one year lease. My experience has been that a lease has more benefit for the tenant than for me. I have had tenants move out before t...
by Abe
Thu Apr 10, 2014 12:26 pm
 
Forum: Personal Finance (Not Investing)
Topic: Wait for better tenant application or approve the one I have
Replies: 27
Views: 1579

Re: How to Handle Death of a Tenant

Yes, this is true, the tenant is 'legally' obligated to pay a full 12 months, assuming the lease was written for that time period. But my experience has been that I could not collect the full lease amount due when a tenant leaves because they don't have the money to pay it. The last time I rented f...
by Abe
Wed Apr 09, 2014 12:23 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to Handle Death of a Tenant
Replies: 19
Views: 1621

Re: How to Handle Death of a Tenant

You pay, you stay, you don't, you go. When I sign a year's lease, I sign up for 12 months of payments. Leaving before the 12 months doesn't cancel my legal obligation to pay the full 12 months. Some are even written for the full annual amount, to be paid in installments. You pay is the only option,...
by Abe
Wed Apr 09, 2014 11:08 am
 
Forum: Personal Finance (Not Investing)
Topic: How to Handle Death of a Tenant
Replies: 19
Views: 1621

Re: Any Bogleheads here into real estate investing?(renting

Just curious about the region where most of you have rental properties. In Atlanta area, I dont see many duplexes or multi family units in general while it is fairly common in North East. Not that I am thinking of getting into the rental game but I have been watching tons of HGTV episodes and the f...
by Abe
Thu Apr 03, 2014 3:39 pm
 
Forum: Investing - Theory, News & General
Topic: Any Bogleheads here into real estate investing?(renting out)
Replies: 53
Views: 3828

Re: Any Bogleheads here into real estate investing?(renting

I have invested in rental properties for many years. When I started out, I didn't have access to investing information like we do now. In other words -- fewer options. Knowing what I do now, I probably would have just gone the Boglehead route. You've got to understand, real estate investing is not p...
by Abe
Thu Apr 03, 2014 1:27 pm
 
Forum: Investing - Theory, News & General
Topic: Any Bogleheads here into real estate investing?(renting out)
Replies: 53
Views: 3828

Re: water heater purchase from Amazon

I personally would never buy a water heater from Amazon. I like to buy things like that locally so if there is a problem, I can take it back. The last time I bought one I think I paid about $250.00 at lowes, and I paid $100.00 to have it installed. I believe it was a 30 gallon heater.
by Abe
Sat Mar 29, 2014 4:58 pm
 
Forum: Personal Consumer Issues
Topic: water heater purchase from Amazon
Replies: 12
Views: 1220

Re: What age did you reach 100K networth?

I remember saving small amounts early on, and later I remember saving $5,000 increments whenever I got a little ahead. That was a lot of money to me at the time. I can't remember at what age I reached the 100K milestone, but I do remember being very excited about it. I thought I was rich. :happy
by Abe
Fri Mar 28, 2014 2:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: What age did you reach 100K networth?
Replies: 264
Views: 31246

Re: Lowes Install Services- anyone use them for a new bathro

I have rental property, and my experience has been better when I buy the materials and then hire my own contractor to do the work. I tried using Home Depots installation service installing carpet one time, and I was not happy with the results. Just my opinion.
by Abe
Fri Mar 28, 2014 12:52 pm
 
Forum: Personal Consumer Issues
Topic: Lowes Install Services- anyone use them for a new bathroom?
Replies: 22
Views: 1796

Re: Renal Property Math - Make Sense?

sounds good Abe , although for the interest on the balance of 190k to be around a 1000 ,i.e. 1900-900 , rate would be between 6-7% - maybe the 15 year was that high a few years ago ??? - but P&I are less than 1900 since escrow is in there ?? :confused Yes, I was going by the information the OP ...
by Abe
Fri Mar 28, 2014 10:41 am
 
Forum: Personal Finance (Not Investing)
Topic: Renal Property Math - Make Sense?
Replies: 21
Views: 1823

Re: Renal Property Math - Make Sense?

"So if I’m thinking about this correctly, of my $1901 monthly payment my friend would pay us $1300 and we’d pay the other $600. That $600 would “buy us” $900 less in the principal of our loan. This seems like a good option assuming we have cash that would be tied up (we do)" My recommenda...
by Abe
Thu Mar 27, 2014 3:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: Renal Property Math - Make Sense?
Replies: 21
Views: 1823

Re: Renal Property Math - Make Sense?

If it were me, I would sell it. I have enough problems managing property within 30 miles of where I live. I would not want to manage rental property from overseas.
by Abe
Thu Mar 27, 2014 2:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: Renal Property Math - Make Sense?
Replies: 21
Views: 1823

Re: Buy Owner's Title Insurance?

The seller should be responsible for conveying a clear title. So, typically the seller would pay for owners title insurance. This should be spelled out in your sales contract. You should have already done this, but you should read your contract - every word. What does your contract say? Edited to ad...
by Abe
Thu Mar 27, 2014 2:26 pm
 
Forum: Personal Finance (Not Investing)
Topic: Buy Owner's Title Insurance?
Replies: 11
Views: 1000

Re: Motley Fool Interview

Great interview, Taylor.

I had to learn from my own mistakes for years. It's great to have a site where we can learn from others. Thank you, Taylor, Mel and others.
by Abe
Thu Mar 27, 2014 11:16 am
 
Forum: Investing - Theory, News & General
Topic: Motley Fool Interview
Replies: 72
Views: 18521

Re: We Don't want to die with Money

There are no easy answers because there are too many unknowns. The 4% rule basically says you can withdraw 4% from a retirement portfolio containing a mix of stocks and bonds. The 4% refers to the portion of the portfolio withdrawn the first year, and assumes the portion withdrawn in subsequent year...
by Abe
Wed Mar 26, 2014 6:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: We Don't want to die with Money
Replies: 45
Views: 3758

Re: We Don't want to die with Money

Retread wrote:Even a SPIA annuity might not do the trick. If you're receiving $200,000 in annuity payments and spending $60,000 your estate will build up again.
Bruce


"Dang, honey we've got to spend another $140,000 before the end of the year." :happy
by Abe
Wed Mar 26, 2014 5:31 pm
 
Forum: Personal Finance (Not Investing)
Topic: We Don't want to die with Money
Replies: 45
Views: 3758

Re: our renters want to buy our rent house

Additionally, you can stipulate yourself out of some of the normal responsibilities... "Yes, I'll give you the option to buy, but you're responsible for anything that breaks because "you're buying it"". I know this sounds good in theory, but in my experience, it has not worked t...
by Abe
Tue Mar 25, 2014 1:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: our renters want to buy our rent house
Replies: 20
Views: 2460

Re: our renters want to buy our rent house

If you owner finance, you can do it the traditional way which is to deed it to them and take back a mortgage. If they default, you have to go through the foreclosure process to get it back which can be expensive. When I sell a house this way, I usually sell to them on a contract (Land Contract). If ...
by Abe
Tue Mar 25, 2014 12:49 pm
 
Forum: Personal Finance (Not Investing)
Topic: our renters want to buy our rent house
Replies: 20
Views: 2460

Re: How did you decide how much to save?

I don't think it's a good idea to save a certain percentage of income and then spend what's left over. Lets say you make $100,000 per year and you want to save 20%. That means you have to spend $80,000. You may not need to spend that much for a decent lifestyle. Why not just spend what you need and...
by Abe
Sat Mar 15, 2014 6:17 pm
 
Forum: Investing - Theory, News & General
Topic: How did you decide how much to save?
Replies: 119
Views: 9182

Re: How did you decide how much to save?

I don't think it's a good idea to save a certain percentage of income and then spend what's left over. Lets say you make $100,000 per year and you want to save 20%. That means you have to spend $80,000. You may not need to spend that much for a decent lifestyle. Why not just spend what you need and ...
by Abe
Sat Mar 15, 2014 4:59 pm
 
Forum: Investing - Theory, News & General
Topic: How did you decide how much to save?
Replies: 119
Views: 9182

Re: How exactly do index funds compound?

This is my very basic view of how a company compounds growth and in turn an index fund since it reflects the values of the companies it holds. Lets say I have $1000 to invest in a start up company (we will call this share holder equity). I set it up where I have 100 shares or a share value of $10 pe...
by Abe
Fri Mar 14, 2014 4:57 pm
 
Forum: Investing - Theory, News & General
Topic: How exactly do index funds compound?
Replies: 12
Views: 2007

Re: William Bernstein-When you've won the game, why keep pla

I believe I remember Bernstein advocating something like this: Take the income you need in retirement, less Social Security and pensions,etc. and multiply by 25 which gives you the amount you need invested in safe investments. Any thing over that can be invested in riskier investments. Edited to add...
by Abe
Wed Mar 12, 2014 2:24 pm
 
Forum: Investing - Theory, News & General
Topic: William Bernstein-When you've won the game, why keep playing
Replies: 241
Views: 25063

Re: William Bernstein-When you've won the game, why keep pla

"When you've won the game, why keep playing". What does that mean? I can understand reducing risk, but what are you going to do, put it under the mattress?
by Abe
Wed Mar 12, 2014 2:13 pm
 
Forum: Investing - Theory, News & General
Topic: William Bernstein-When you've won the game, why keep playing
Replies: 241
Views: 25063

Re: Favorite gadgets?

Financial calculator.
Texas Instrument BAll Plus
by Abe
Wed Mar 12, 2014 2:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: Favorite gadgets?
Replies: 28
Views: 1521

Re: Should I Pay Off This Rental Property

You can look at it two ways: an investment perspective and an emotional perspective. Leverage is used a lot in RE investing. You are using borrowed money (leverage) so your return on out of pocket money should be higher. You have $49k. You can pay the loan off and invest the $921 per month. If you d...
by Abe
Wed Mar 12, 2014 12:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I Pay Off This Rental Property
Replies: 13
Views: 646

Re: How do I stop worrying about money?

I read a book one time titled Psycho-Cybernetics by Dr. Maxwell Maltz. One concept in the book that really stuck with me was the analogy of a WW-ll torpedo guidance system. When a torpedo is fired, it locks onto a target. When it gets off course, it corrects itself and adjust trajectory to hone-in m...
by Abe
Tue Mar 11, 2014 11:47 am
 
Forum: Personal Finance (Not Investing)
Topic: How do I stop worrying about money?
Replies: 66
Views: 5593

Re: Where do you order business checks from?

Same here. I get mine from walmartchecks.com

They are very expensive if you order through your bank.
by Abe
Mon Mar 10, 2014 4:35 pm
 
Forum: Personal Consumer Issues
Topic: Where do you order business checks from?
Replies: 18
Views: 1089

Re: How do I stop worrying about money?

Taylor is right. I have a friend who lost his wife a few weeks ago. He just called me yesterday and told me his only son died. It's all relative.
by Abe
Mon Mar 10, 2014 4:24 pm
 
Forum: Personal Finance (Not Investing)
Topic: How do I stop worrying about money?
Replies: 66
Views: 5593

Re: How do I stop worrying about money?

I am very interested in the responses to this post because I am the same way. I probably have more than most, but I can't let go. I can't stop and smell the roses, as they say. It sounds like you are the same. If so, I don't know what to tell you. I read "How to Stop Worrying and Start Living&q...
by Abe
Mon Mar 10, 2014 3:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: How do I stop worrying about money?
Replies: 66
Views: 5593

Re: How much do I need a month?

324 months, 4%, $120,000 PV, $4 million FV,
My calculator says $6,268.74 per month (compounded monthly)
Just round it off to: $6,270.00 :happy
by Abe
Mon Mar 10, 2014 1:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: How much do I need a month?
Replies: 9
Views: 948

Re: Alert. Scam with callers posing as IRS agents...

Another red flag (aside from the flashing red lights and screaming warning sirens :!: ) is that if there is a court hearing, and one "loses", the first thing one might notice (if otherwise not paying attention...) would be a lien on assorted property. This would no doubt include a bank/ch...
by Abe
Fri Mar 07, 2014 5:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: Alert. Scam with callers posing as IRS agents...
Replies: 29
Views: 1803

Re: Alert. Scam with callers posing as IRS agents...

Another red flag (aside from the flashing red lights and screaming warning sirens :!: ) is that if there is a court hearing, and one "loses", the first thing one might notice (if otherwise not paying attention...) would be a lien on assorted property. This would no doubt include a bank/ch...
by Abe
Fri Mar 07, 2014 1:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: Alert. Scam with callers posing as IRS agents...
Replies: 29
Views: 1803

Re: The Present Value of Pensions

Maybe if you are being offered a pension vs a lump sum there is some need for this calc. But absent that, I don't understand the value of computing the present value of pensions since you can't sell them or do anything but collect the income stream. And when you die they are either worth nothing or...
by Abe
Fri Mar 07, 2014 12:28 pm
 
Forum: Investing - Theory, News & General
Topic: The Present Value of Pensions
Replies: 53
Views: 5866

Re: The dealership wants my 2 year old car back?

Sounds too good to be true. :happy
by Abe
Thu Mar 06, 2014 6:02 pm
 
Forum: Personal Consumer Issues
Topic: The dealership wants my 2 year old car back?
Replies: 46
Views: 4276

Re: The Present Value of Pensions

Starting with an annual pension of 1 unit a quick n dirty way to get rough PV multiples with and without index would be to use a spreadsheet ; say we pick 6% as the interest rate and 3% for the index - for a 65 year old maybe use a 20 year stream for example - the PV of the first annual payment is ...
by Abe
Thu Mar 06, 2014 4:33 pm
 
Forum: Investing - Theory, News & General
Topic: The Present Value of Pensions
Replies: 53
Views: 5866

Re: Do you have a favorite chocolate bar?

Hershey bar with almonds. $1.35 at the Dollar Store. :greedy
by Abe
Wed Mar 05, 2014 2:58 pm
 
Forum: Personal Consumer Issues
Topic: Do you have a favorite chocolate bar?
Replies: 86
Views: 4083

Re: You know you're a Boglehead when ...

"Abe » Tue Mar 04, 2014 7:54 am You pick up pennies" You pick up pennies even though you're worth 6 million. Okay, nickels anyway. travellight Yes, I still pick up pennies. My wife and I were walking the other day, and I passed one up. My wife said, "you're not going to pick that pen...
by Abe
Tue Mar 04, 2014 4:26 pm
 
Forum: Local Chapters and Bogleheads Community
Topic: You know you're a Boglehead when ...
Replies: 86
Views: 5164

Re: How to deposit checks made out to deceased ?

This is why I don't deal with big banks. They are always coming up with things they can't do. My small locally owned bank will do most anything I ask if it's legal.
This has been my experience.
by Abe
Tue Mar 04, 2014 3:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to deposit checks made out to deceased ?
Replies: 9
Views: 1129

Re: You know you're a Boglehead when ...

You pick up pennies. :happy
by Abe
Tue Mar 04, 2014 12:54 pm
 
Forum: Local Chapters and Bogleheads Community
Topic: You know you're a Boglehead when ...
Replies: 86
Views: 5164

Re: Estate Sales

As a consumer, has anybody here gotten any incredible buys at estate sales? I have a friend who bought a certified genuine Miro painting at an estate sale for $500. My wife picked up a pair of Dooney & Bourke purses, looked almost brand new, at an estate sale for $2 each a few years ago. I know...
by Abe
Fri Feb 28, 2014 5:37 pm
 
Forum: Personal Consumer Issues
Topic: Estate Sales
Replies: 23
Views: 2294

Re: Estate Sales

Abe, the "bottom line" for me was the "clean-out" service, as I absolutely, positively, needed to turn the house over to the buyer by a certain date. Neither he (nor I) could accommodate a two or three month lag-time, while I tried to sell off the "stuff". I did the ma...
by Abe
Fri Feb 28, 2014 5:31 pm
 
Forum: Personal Consumer Issues
Topic: Estate Sales
Replies: 23
Views: 2294

Re: Estate Sales

I have picked up bargains at estate sales, but it's usually when the family is conducting the sale as opposed to professional estate sellers. Generally, when the family members do the sale they over price some items and under price some, and they usually are in a hurry to get rid of everything. Prof...
by Abe
Fri Feb 28, 2014 3:57 pm
 
Forum: Personal Consumer Issues
Topic: Estate Sales
Replies: 23
Views: 2294

Re: Should I Get Cheap Personal Loan & Invest It?

I agree with bottlecap. This is not a prudent way for you to invest. Better to take the money that you would use to repay the loan and either invest it or pay down your debt.
by Abe
Tue Feb 25, 2014 3:22 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I Get Cheap Personal Loan & Invest It?
Replies: 72
Views: 3679

Re: Can my grandfather take out his IRA and buy a house to r

I haven't read all the replies, but I think he can invest in real estate within an IRA through a self-directed IRA. I would not recommend it for several reasons. 1) There are many restrictions involved. 2) He probably doesn't need the headaches of owning investment real estate at his age anyway. 3) ...
by Abe
Tue Feb 25, 2014 3:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: Can my grandfather take out his IRA and buy a house to rent?
Replies: 42
Views: 2443

Re: I'm feeling old today

And don't forget the old 1930's movie serials like Flash Gordon and Tim Tyler's Luck that played repeatedly during the early days. It seemed like at least half of the Tim Tyler episodes ended with Tim cornered by an angry gorilla, but he always managed to escape in the next one. And who remembers t...
by Abe
Thu Feb 13, 2014 2:20 pm
 
Forum: Personal Consumer Issues
Topic: I'm feeling old today
Replies: 97
Views: 6645

Re: Investing with Low amounts in Real Estates

If it sounds too good to be true, it probably is.
by Abe
Mon Feb 10, 2014 5:23 pm
 
Forum: Investing - Theory, News & General
Topic: Investing with Low amounts in Real Estates
Replies: 2
Views: 256

Re: A $1000 lesson on how manipulative salespeople can be?

I know I have already posted, but I wanted to add something. There was a time when it was hard for me to say no to people. Sales people use this to their advantage. Now when someone is trying to get me to do something that I don't want to do, I usually say something like, " I'm not going to be ...
by Abe
Mon Feb 10, 2014 3:49 pm
 
Forum: Personal Finance (Not Investing)
Topic: A $1000 lesson on how manipulative salespeople can be?
Replies: 70
Views: 8001
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