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by Aptenodytes
Tue May 26, 2015 5:07 pm
Forum: Personal Finance (Not Investing)
Topic: Penfed 0.99% auto loan
Replies: 33
Views: 2201

Re: Penfed 0.99% auto loan

Just wanted to follow up.. did anyone apply for this on Thursday-Friday and get the 0.99% deal besides harikaried who already had a loan with them and was easier to click/refi? I'm curious how fast they were processing if this deal comes around again. Thanks. I applied on Saturday afternoon and had...
by Aptenodytes
Tue May 26, 2015 9:36 am
Forum: Investing - Help with Personal Investments
Topic: Changing my bond allocation
Replies: 6
Views: 885

Re: Changing my bond allocation

If I have MUNI's in taxable accounts I don't pay taxes on them, and I can move the stocks, which are in taxable accounts, into tax sheltered accounts, so I don't pay taxes on dividends. I believe the preferred solution is to keep bonds in tax-advantaged and concentrate your taxable stock holdings i...
by Aptenodytes
Tue May 26, 2015 7:58 am
Forum: Investing - Help with Personal Investments
Topic: Building a diverse portfolio from sector funds
Replies: 11
Views: 819

Re: Building a diverse portfolio from sector funds

My sense is that comparing performance isn't going to be that useful. I think the most relevant questions are these: 1) approximately what fraction of the acceptable companies are captured in the collection of sector funds you have identified? My guess is it is pretty high, in which case you are in ...
by Aptenodytes
Tue May 26, 2015 7:36 am
Forum: Investing - Help with Personal Investments
Topic: Changing my bond allocation
Replies: 6
Views: 885

Re: Changing my bond allocation

Why do you want to do this?
by Aptenodytes
Mon May 25, 2015 11:53 am
Forum: Investing - Help with Personal Investments
Topic: Allocation with large holding in single stock
Replies: 31
Views: 1802

Re: Allocation with large holding in single stock

I think people are getting a bit overwrought about this. The OP has clarified that the parents do not need the AAPL holdings to finance their retirement. What they have outside of AAPL is enough to provide for a comfortable living. So the worst case scenario is a life of comfort and bump up in wisdo...
by Aptenodytes
Sun May 24, 2015 12:37 pm
Forum: Personal Consumer Issues
Topic: Building a guest house
Replies: 20
Views: 1799

Re: Building a guest house

Just sell him the land and put the proceeds in a retirement account. Choosing to be a landlord and to bankroll the construction just because you are making a guess that the land will increase in value more than a stock fund is kind of bananas. That's a lot of risk and headache you are taking on with...
by Aptenodytes
Sun May 24, 2015 12:12 pm
Forum: Investing - Help with Personal Investments
Topic: Allocation with large holding in single stock
Replies: 31
Views: 1802

Re: Allocation with large holding in single stock

The 40% is enough to provide comfortably for them. Given that, I would not invest the 40% in bonds. You want it to grow at a reasonable but safe rate, the way a lifestrategy fund would aim for. The large stake in Apple is essentially a massive speculative move with what you might call "play mo...
by Aptenodytes
Sun May 24, 2015 10:19 am
Forum: Investing - Help with Personal Investments
Topic: Allocation with large holding in single stock
Replies: 31
Views: 1802

Re: Allocation with large holding in single stock

As prudent points out, the answer depends on their overall financial situation. 1) If this portfolio is to provide the bulk of their retirement income, and the 40% is not enough to provide for them comfortably, then I would think about a string of annuities -- perhaps a third now, a third in 5 years...
by Aptenodytes
Thu May 21, 2015 11:35 pm
Forum: Personal Finance (Not Investing)
Topic: Question about Mortgage "hacks" in payment
Replies: 4
Views: 792

Re: Question about Mortgage "hacks" in payment

If you pay off a loan faster your interest payments are reduced.

If you extend the term your interest rate goes up.
by Aptenodytes
Tue May 19, 2015 1:08 pm
Forum: Investing - Theory, News & General
Topic: Benchmarking - Do you and what is your reference?
Replies: 13
Views: 747

Re: Benchmarking - Do you and what is your reference?

For a passive index-fund investor, the only rationale I can see for benchmarking is the one Livesoft articulates, to see if any departures from the pure passive approach are helpful or hurtful. However, for this rationale to be worth acting on, the signal generated has to be strong enough to trigger...
by Aptenodytes
Tue May 19, 2015 12:49 pm
Forum: Investing - Help with Personal Investments
Topic: HSA Brokerage Account Guidance for Young Family
Replies: 10
Views: 705

Re: HSA Brokerage Account Guidance for Young Family

The conventional wisdom is to invest all the HSA, not just what's left over after health care expenses, if you can afford it. My rule of thumb is use HSA debit card for charges under $50 but pay rest of of pocket. I've heard this from many and agree that would be the ideal situation. Unfortunately ...
by Aptenodytes
Mon May 18, 2015 3:01 pm
Forum: Investing - Help with Personal Investments
Topic: HSA Brokerage Account Guidance for Young Family
Replies: 10
Views: 705

Re: HSA Brokerage Account Guidance for Young Family

I transfer when I feel like it, not necessarily once a year. It isn't a major hassle, but I wait until the balance is about $10,000. Maybe I'm just lazy. The conventional wisdom is to invest all the HSA, not just what's left over after health care expenses, if you can afford it. My rule of thumb is ...
by Aptenodytes
Sun May 17, 2015 8:59 pm
Forum: Investing - Help with Personal Investments
Topic: Daughter & Husband portfolio rebalance
Replies: 10
Views: 1106

Re: Daughter & Husband portfolio rebalance

Although it is a good impulse to try to follow the guidelines on how to post all your relevant information, it is even more important to work out what your question is, and state it right at the top so readers know what you are looking for.
by Aptenodytes
Sun May 17, 2015 7:10 am
Forum: Personal Consumer Issues
Topic: How do I get best deal on trade in?
Replies: 14
Views: 1473

Re: How do I get best deal on trade in?

I think the only compelling rationale for selling a used car to a new car dealer as a trade-in was convenience. But nowadays there are other easy ways to sell a used car conveniently, so it would be rare that a new-car dealer would come out ahead on both price and convenience. The only reliable way ...
by Aptenodytes
Sat May 16, 2015 3:02 pm
Forum: Investing - Help with Personal Investments
Topic: Lightbulb went off around Asset Allocation
Replies: 15
Views: 1965

Re: Lightbulb went off around Asset Allocation

If you are prone to flashing cranial lightbulbs then you probably don't need to plan out a 60-year path. You will undoubtedly change your mind several times over that period. So probably you want to change your AA, if at all, in modest ways that take into account the possibility of ongoing tweaking....
by Aptenodytes
Sat May 16, 2015 2:46 pm
Forum: Investing - Help with Personal Investments
Topic: Single best investment 5/10/15 years for car
Replies: 7
Views: 1199

Re: Single best investment 5/10/15 years for car

The fact that guessing how to invest for such short time periods is hard is one reason borrowing for such purchases doesn't always seem so bad. You can invest the money at your long term AA, earning the higher return, and borrow at around 2.5% for the car (I believe you can get used car rates like t...
by Aptenodytes
Sat May 09, 2015 8:00 pm
Forum: Investing - Theory, News & General
Topic: Dollar value averaging in practice
Replies: 7
Views: 815

Re: Dollar value averaging in practice

The preferred term is "value averaging," but I've never understand that. As far as I can tell values are never averaged. I would call it something like "constant portfolio growth" or something like that. At the end of the day it combines plain old rebalancing (sell high-price ass...
by Aptenodytes
Sat May 09, 2015 7:30 pm
Forum: Forum Issues and Administration
Topic: Searching for Bogleheads forum members.
Replies: 9
Views: 888

Re: Searching for Bogleheads forum members.

I see your dilemma and have no easy solution. I don't get the dilemma. If you know the user name, you can find them through a variety of search strategies, including those listed here. If you don't know the user name, you have to either browse a list or do a search with wildcards and browse the res...
by Aptenodytes
Sat May 09, 2015 2:40 pm
Forum: Investing - Theory, News & General
Topic: Swedroe: Credit Risk Not Worth It
Replies: 43
Views: 5266

Re: Swedroe: Credit Risk Not Worth It

As if it weren't confusing enough to have Rick Ferri and Larry Swedroe, two people many of us look to for sage counsel, taking polar opposite views on this question, but they are both citing AQR papers as among their core references. Ferri cites this AQR paper: Investing with Style in Corporate Bond...
by Aptenodytes
Sat May 09, 2015 12:57 pm
Forum: Investing - Theory, News & General
Topic: Stop contributions to retirement accts due to future RMDs
Replies: 77
Views: 5429

Re: Stop contributions to retirement accts due to future RMDs

Just wanted to know if anyone has even thought about it :shock: Seriously? There are probably dozens of threads on the topic. Actually, there aren't too many threads recommending that one stop contributing to trad 401k and IRAs for the last five years of employment. Usual mantra is always to max ou...
by Aptenodytes
Sat May 09, 2015 10:25 am
Forum: Personal Finance (Not Investing)
Topic: NYT: 2% rebate credit cards; will they last?
Replies: 30
Views: 3315

Re: NYT: 2% rebate credit cards; will they last?

Thanks for sharing this. I was just trying to weigh the merits of shifting $25,000/year of card purchases from Fidelity Amex to a Delta-branded card as the only apparent way I can continue to keep platinum status on Delta. I fly enough miles every year, but there's no way I can hit the new spending ...
by Aptenodytes
Sat May 09, 2015 10:16 am
Forum: Personal Consumer Issues
Topic: Save $$$ On Razor Blades
Replies: 29
Views: 3547

Re: Save $$$ On Razor Blades

Apologies if this tip has already been mentioned. If disposable cartridges are good enough for you and you are happy to forego all the alleged innovations in disposable technology, you can buy bulk quantities of older generation cartridges on eBay for quite cheap. I now have what I expect to be a li...
by Aptenodytes
Fri May 08, 2015 7:33 am
Forum: Investing - Help with Personal Investments
Topic: AA behavioural question
Replies: 5
Views: 801

Re: AA behavioural question

Do you live in the US? You spell "behavioural" in the non-US manner. Your geographic allocation is in part influenced by where you live. 1) What you propose to here is wrong on many levels. a) thinking you can time swings in US/ex-US share prices reflects overconfidence, shrinking of uncer...
by Aptenodytes
Thu May 07, 2015 3:09 pm
Forum: Personal Consumer Issues
Topic: What to do with mink coat
Replies: 30
Views: 2312

Re: What to do with mink coat

I researched options and tried to sell a couple of my mother's mink coats, after she died. It was a lost cause. If there's a family member that might wear one once in a while, give it to them. That's what I did. Otherwise, you could offer for free on Craigslist and see who wants it. If it was new wh...
by Aptenodytes
Thu May 07, 2015 1:23 pm
Forum: Investing - Help with Personal Investments
Topic: Diversifying beyond Vanguard Target Date Fund
Replies: 45
Views: 4409

Re: Diversifying beyond Vanguard Target Date Fund

1) if your diagnosis is that you have an itch, then the proper response is to do nothing. Financial theory and evidence are irrelevant; itches should never be scratched. There will always be a new itch to follow, so just don't ever scratch. 2) if you want some diversification for reasons that have n...
by Aptenodytes
Tue May 05, 2015 6:20 am
Forum: Investing - Theory, News & General
Topic: Where are the dividends with Funds??
Replies: 21
Views: 2614

Re: Where are the dividends with Funds??

Why do you want dividends? Seems foolish to me. I hate dividends. It's the most tax inefficient way to give money to shareholders. Because any increase in share price is potentially, even likely to be temporary over the course of decades. Kodak is a great example of this. Anyone who didn't take div...
by Aptenodytes
Sun May 03, 2015 12:20 pm
Forum: Investing - Theory, News & General
Topic: Reverse Glide Path
Replies: 14
Views: 878

Re: Reverse Glide Path

1) the concept is too new and confusing for there to be consensus on the terminology, so you probably want to ask what people plan to do than to ask for a yes or no answer. 2) this is a perfect question for a poll with many choices. 3) at age 56, I am gliding from about 50% stocks to 30% by age 65. ...
by Aptenodytes
Sat May 02, 2015 10:53 pm
Forum: Investing - Help with Personal Investments
Topic: Is there any stable value funds that returns ~3% outside of a 401k?
Replies: 12
Views: 1773

Re: Is there any stable value funds that returns ~3% outside of a 401k?

I'm assuming your are maximizing contributions to the 403b and that 100% of the 403b is in the Traditional Annuity. But I wanted to check my assumption.
by Aptenodytes
Sat May 02, 2015 1:11 pm
Forum: Investing - Help with Personal Investments
Topic: bond ladder or bond funds in retirement
Replies: 1
Views: 307

Re: bond ladder or bond funds in retirement

You don't have to choose one or the other. A mixture is fine. My own plan is for about a quarter of my extra-SS spending needs to come out of a TIPS ladder, which means something like 60% of the bond funds would be in the ladder at the time of retirement (still a decade off). I wouldn't want to go m...
by Aptenodytes
Sat May 02, 2015 7:09 am
Forum: Investing - Help with Personal Investments
Topic: How to invest 15 years of living expenses
Replies: 13
Views: 1584

Re: How to invest 15 years of living expenses

Hi, first post but I have lived the BH philosophy for a long time. Retiring at age 55 with $1,125,000 in taxable assets to get me to age 70. After that, SS, Roth and T IRAs will be more than enough. Why not work on a better plan that also allows you to spend the tIRA and Roth after you reach age 59...
by Aptenodytes
Sat May 02, 2015 7:07 am
Forum: Investing - Help with Personal Investments
Topic: How to invest 15 years of living expenses
Replies: 13
Views: 1584

Re: How to invest 15 years of living expenses

I think you are making your life unnecessarily complicated. I think you will find it easier to consider your taxable accounts and IRAs as a single portfolio. You can start withdrawing from the IRAs penalty-free at 59.5. So you just have 5 years during which only the taxable accounts are available; a...
by Aptenodytes
Fri May 01, 2015 8:41 am
Forum: Investing - Help with Personal Investments
Topic: Can you improve this constructed portfolio?
Replies: 35
Views: 2474

Re: Can you improve this constructed portfolio?

1. It is good as is.
2. Slice up the bonds if you want (I do) but only if you want. There's no need to.
by Aptenodytes
Thu Apr 30, 2015 10:13 am
Forum: Investing - Help with Personal Investments
Topic: Is $700/yr too much to pay Vanguard to have VSMGX?
Replies: 28
Views: 3245

Re: Is $700/yr too much to pay Vanguard to have VSMGX?

If I had $1,000,000 dollars I wouldn't consider $700 a lot to simplify my life and let Vanguard do the work for me so I can focus on other things in life. I think if it prevents you from making behavioral mistakes that would be the most compelling reason to stick with VSMGX. If you don't mind doing...
by Aptenodytes
Thu Apr 30, 2015 10:12 am
Forum: Investing - Help with Personal Investments
Topic: Is $700/yr too much to pay Vanguard to have VSMGX?
Replies: 28
Views: 3245

Re: Is $700/yr too much to pay Vanguard to have VSMGX?

Hmm is 10 minutes a year to rebalance worth 700 bucks? Not to me. Mike That's an interesting way to look at it - thanks! $4200 an hour. Not bad... (but don't take 15 minutes, your pay rate drops to $2400/hr) Err, that's not the question. That's a no-brainer. The question is whether $700/year is too...
by Aptenodytes
Thu Apr 30, 2015 7:33 am
Forum: Investing - Theory, News & General
Topic: dollar cost averaging at present high price levels
Replies: 22
Views: 2786

Re: dollar cost averaging at present high price levels

The thread is not about lump sum versus DCA. One could make a case that with a few tweaks the wiki entry would obviate the need for there ever to be another thread on that topic. The thread is about what to do when you get nervous about continuing to invest new money in your portfolio when prices ge...
by Aptenodytes
Wed Apr 29, 2015 2:11 pm
Forum: Investing - Theory, News & General
Topic: dollar cost averaging at present high price levels
Replies: 22
Views: 2786

Re: dollar cost averaging at present high price levels

DCA is less risky at these market levels than lump sum investing. It's ok to have an investment plan and you should usually stick to it. When markets are at record highs and interest rates are at record lows - maybe DCA was a more prudent way to invest. I think the OP means DCA in the original, wha...
by Aptenodytes
Wed Apr 29, 2015 7:20 am
Forum: Investing - Theory, News & General
Topic: IBD: How Does Your Nest Egg Compare To Most Americans'?
Replies: 14
Views: 3677

Re: IBD: How Does Your Nest Egg Compare To Most Americans'?

These articles seem almost totally worthless to me. They respond to the need to fill space but don't add meaningful information. Bobblehead's net worth survey gives you a much better basis for comparison, albeit not to "most Americans." If I wanted to compare my nest egg to other Americans...
by Aptenodytes
Tue Apr 28, 2015 4:29 pm
Forum: Investing - Theory, News & General
Topic: dollar cost averaging at present high price levels
Replies: 22
Views: 2786

Re: dollar cost averaging at present high price levels

You need to refill your chill pill prescription. I assume by dollar-cost averaging you mean making a monthly contribution to a retirement account. You say that feels like "financial suicide?" By the time you retire what happens to this month's contribution will not matter at all; even if i...
by Aptenodytes
Mon Apr 27, 2015 11:35 am
Forum: Personal Consumer Issues
Topic: Another reason NOT to use (free) Wifi
Replies: 53
Views: 6244

Re: Another reason NOT to use (free) Wifi

I don't understand why so many people are walking around with their wifi antennas turned on. What possible purpose could that serve? Mine is always off unless I'm sitting down somewhere and want to do data-intensive work. Having it on just creates headaches with no benefit.
by Aptenodytes
Mon Apr 27, 2015 8:56 am
Forum: Investing - Theory, News & General
Topic: Pfau, Kitces, & Target-Date Fund glide paths
Replies: 29
Views: 2660

Re: Pfau, Kitces, & Target-Date Fund glide paths

What they actually showed is that in a scenario where SPIA+stocks works out (and you don't spend too much out of the stocks, so their balance keeps rising), then you could replace SPIA with plain old bonds, so you instead have bonds+stocks, and the proportions are calculated based on what the resid...
by Aptenodytes
Sun Apr 26, 2015 11:59 pm
Forum: Investing - Theory, News & General
Topic: Pfau, Kitces, & Target-Date Fund glide paths
Replies: 29
Views: 2660

Re: Pfau, Kitces, & Target-Date Fund glide paths

Someone who wanted to follow the Pfau/Kitces approach would not want to use a target date fund. The trajectory you follow beginning about 5 years after retirement is driven by the interaction of market dynamics and spending patterns; you can't foreordain it. At least that's how I interpret it. The a...
by Aptenodytes
Sat Apr 25, 2015 7:42 pm
Forum: Investing - Theory, News & General
Topic: International Stock Poll: Emerging vs Developed Ratio
Replies: 55
Views: 2806

Re: International Stock Poll: Emerging vs Developed Ratio

E.g., this is my portfolio, adding up to 100%: (a) US Govt Treasuries: 20%, (b) US total stock market: 50%, (c) non-US Govt Treasuries: 5%, (d) non-US stock market, DEVELOPED: 15%, (e) non-US stock market, EMERGING: 10%. Now, is my emerging this: 10% / (10+15)% = 40%, or is my emerging this: 10% / ...
by Aptenodytes
Sat Apr 25, 2015 9:51 am
Forum: Investing - Theory, News & General
Topic: International Stock Poll: Emerging vs Developed Ratio
Replies: 55
Views: 2806

Re: International Stock Poll: Emerging vs Developed Ratio

I would have anchored a point in the poll around 17-20%, which captures what Vanguard considers the emerging percentage (18-19%) of the total market. That's the untilted percentage. I had to answer 11-20% which veers very far into the developed tilt and hardly at all into the emerging tilt.
by Aptenodytes
Fri Apr 24, 2015 2:48 pm
Forum: Investing - Help with Personal Investments
Topic: Inherited IRA Options
Replies: 15
Views: 620

Re: Inherited IRA Options

1) I'll reinforce the point that trusts shouldn't be created lightly, and certainly not without thinking through the cost implications. In this particular case, if I were the OP's sister I would have explored very different options. E.g. I would have considered leaving the $80,000 to the OP with ins...
by Aptenodytes
Wed Apr 22, 2015 6:30 am
Forum: Investing - Help with Personal Investments
Topic: Another TREA question
Replies: 6
Views: 469

Re: Another TREA question

It doesn't really matter, does it? There isn't anything else like it, so which fund would you switch to based on cost? For these sui generis funds you need to look at the investment philosophy and the long-term track record. There's really nothing else to go on. If TREA came on to the market today, ...
by Aptenodytes
Tue Apr 21, 2015 9:27 pm
Forum: Investing - Theory, News & General
Topic: "How much of your portfolio is in index funds, and why?"
Replies: 91
Views: 8582

Re: "How much of your portfolio is in index funds, and why?"

Interesting question. I would argue that you can be faithful to the boglehead philosophy without having a high percentage in index funds. Even Taylor kind of hedged his answer by saying "nearly all" of his funds are index funds. That means 2/3 of them are. In my case, half of my "fund...
by Aptenodytes
Tue Apr 21, 2015 3:28 pm
Forum: Personal Consumer Issues
Topic: Taking Care Of Leaves
Replies: 18
Views: 1331

Re: Taking Care Of Leaves

Another vote for mulching them in place with a mower.
by Aptenodytes
Tue Apr 21, 2015 9:41 am
Forum: Personal Finance (Not Investing)
Topic: New Wade Pfau on Guyton-Klinger & Other Ret. Strategies
Replies: 13
Views: 1832

Re: New Wade Pfau on Guyton-Klinger & Other Ret. Strategies

Regarding unexpected jumps in medical costs, this seems like a question that hasn't been addressed very systematically. 1) Some people have so much money they can absorb almost any calamity. They don't have to worry. 2) Some people are wealthy enough to afford long-term care insurance without having...
by Aptenodytes
Mon Apr 20, 2015 9:54 am
Forum: Investing - Theory, News & General
Topic: Temporal autocorrelation of stock/fund prices and movement
Replies: 30
Views: 1567

Re: Temporal autocorrelation of stock/fund prices and moveme

My intuitive synthesis is that fund prices exhibit strong path dependence, with path dependence increasing in inverse proportion to the time frame. The way the NY Times visualizes stock price trends on Sundays reflects this (trend lines with confidence intervals shaded around them) -- the expected d...
by Aptenodytes
Mon Apr 20, 2015 9:35 am
Forum: Personal Finance (Not Investing)
Topic: New Wade Pfau on Guyton-Klinger & Other Ret. Strategies
Replies: 13
Views: 1832

Re: New Wade Pfau on Guyton-Klinger & Other Ret. Strategies

In general I find it extremely helpful when the moderators merge threads on the same topic. I often can't get to the forum for days at a time, and if there's something interesting being said about a new paper or idea it is far better to catch up on the discussion within a single thread. One reason t...

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