Search found 1088 matches

by Dulocracy
Fri Jul 31, 2015 7:37 am
Forum: Investing - Help with Personal Investments
Topic: t401k vs. r401k vs. tIRA vs. rIRA
Replies: 7
Views: 377

Re: t401k vs. r401k vs. tIRA vs. rIRA

The difference between a traditional and Roth account is that the Roth (not roth or ROTH as it is a formal name of the man that originated it and not an acronym) is post tax dollars, but you are NEVER TAXED AGAIN on the money. With traditional, you are not taxed until it is time to pull the money ou...
by Dulocracy
Thu Jul 30, 2015 3:59 pm
Forum: Investing - Theory, News & General
Topic: Jack Bogle in this Month's Money Magazine
Replies: 79
Views: 8090

Re: Jack Bogle in this Month's Money Magazine

Thanks for the link. As far as whether or not we should hold international, you know that those of us who hold it do so because we are bored. We just need more reading material and do it for the free prospectus.
by Dulocracy
Thu Jul 30, 2015 3:47 pm
Forum: Personal Finance (Not Investing)
Topic: Protecting a young adult from his money?
Replies: 25
Views: 2788

Re: Protecting a young adult from his money?

The mom could hire a lawyer and go to court to obtain a conservatorship/guardianship over the son. From the details provided, probably not. It is no small deal to get a guardianship over someone. You are legally stripping them of their rights; courts do not do this lightly. As has been stated, bein...
by Dulocracy
Thu Jul 30, 2015 3:44 pm
Forum: Personal Finance (Not Investing)
Topic: Protecting a young adult from his money?
Replies: 25
Views: 2788

Re: Protecting a young adult from his money?

"Protecting a young adult from his money?" "Protecting his money from a young adult?" No matter how you phrase it, the key here is "his money". There may be significant legal ramifications for her to do anything with the money other than give it to him. Step one would b...
by Dulocracy
Thu Jul 30, 2015 3:06 pm
Forum: Investing - Help with Personal Investments
Topic: Pre-Tax 401K or Roth IRA for Bonds
Replies: 6
Views: 440

Re: Pre-Tax 401K or Roth IRA for Bonds

Definitely bonds in 401k. You never have to pay taxes on the Roth money again. You want that money to grow the most (while not necessarily so, equities at least have a higher EXPECTED return). Money coming out of a traditional retirement account will be taxed as regular income to you, regardless of ...
by Dulocracy
Thu Jul 30, 2015 3:04 pm
Forum: Personal Finance (Not Investing)
Topic: Keep paying the mortgage??
Replies: 64
Views: 5779

Re: Keep paying the mortgage??

Ask your attorney. Follow his/her advice. These are decisions which could potentially impact your claim, depending on state law.
by Dulocracy
Thu Jul 30, 2015 3:01 pm
Forum: Investing - Theory, News & General
Topic: "Pants on Fire: 10 Big Lies in the Financial Services Industry" by Bob Seawright/Above the Market Blog
Replies: 5
Views: 1372

Re: "Pants on Fire: 10 Big Lies in the Financial Services Industry" by Bob Seawright/Above the Market Blog

Thanks! I like the images he uses... especially the old comic strip. "Wanna run away from the truth together?" "Yes"
by Dulocracy
Thu Jul 30, 2015 2:33 pm
Forum: Investing - Theory, News & General
Topic: How has the 4% rule held up since the tech bubble and the 2008 crisis
Replies: 23
Views: 2773

Re: How has the 4% rule held up since the tech bubble and the 2008 crisis

We are planning on a 2.4% withdrawal rate. If there is a boatload of cash left over, my heirs will think fondly of me for at least a few days. A low withdrawal rate does not mean living in poverty, however. We do not plan on lowering our standard of living; we just plan on saving enough that we know...
by Dulocracy
Thu Jul 30, 2015 2:26 pm
Forum: Investing - Theory, News & General
Topic: A look at gold and Peter Schiff's forecasts
Replies: 15
Views: 1824

Re: A look at gold and Peter Schiff's forecasts

Ha! Hey, out of all that he got wrong, he did get the Yen right! So I should always follow his advice on the yen now, right? :twisted:
by Dulocracy
Thu Jul 30, 2015 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: Who are you able to share good financial news with?
Replies: 80
Views: 4754

Re: Who are you able to share good financial news with?

Oh, and I tell my spouse and a small group of individuals that I meet with. The sole purpose of the group is to hold each other accountable, keep each other on track, and keep things moving towards prosperity for all members. While we are at different points in our wealth-building, we all celebrate ...
by Dulocracy
Thu Jul 30, 2015 2:11 pm
Forum: Personal Finance (Not Investing)
Topic: Who are you able to share good financial news with?
Replies: 80
Views: 4754

Re: Who are you able to share good financial news with?

Spouse only. Some years ago I mentioned that year's raise to my wife in the presence of my stepdaughter, and then I had to listen to her whine for a month or so afterward, "Why can't I have xxx? *WE* have a raise!" (emphasis mine) I do not know why my reaction was so visceral, but that co...
by Dulocracy
Thu Jul 30, 2015 1:06 pm
Forum: Investing - Theory, News & General
Topic: Rick’s Top Ten List of When Not To Invest
Replies: 16
Views: 4038

Re: Rick’s Top Ten List of When Not To Invest

7.) Avoid an investment that is promoted as “no cost to you” because you are still paying for it; you just don’t know how, or how much. This reminds me of the free real estate seminar I went to that talked about a no-cost way of getting into real estate by getting options to purchase property and t...
by Dulocracy
Thu Jul 30, 2015 1:00 pm
Forum: Personal Consumer Issues
Topic: Cowpea weevils took over my pantry
Replies: 9
Views: 1017

Re: Cowpea weevils took over my pantry

After looking it up, (penile spines? For no apparent purpose?) I did see that this: In developing countries, small-scale farmers mix the crushed leaves of Cassia occidentalis into bean stores to deter the beetle.[24] Other Cassia are useful, as well. The powdered leaves are effective, and a warm-wat...
by Dulocracy
Thu Jul 30, 2015 12:46 pm
Forum: Investing - Theory, News & General
Topic: Mortgage as a reverse-bond technique
Replies: 36
Views: 1634

Re: Mortgage as a reverse-bond technique

I think you have way over thought this in an effort to justify a higher stock allocation. Just say, I don't plan to own any bonds until interest rates are higher. In the meantime, I will be prepaying my mortgage to get some modicum of guaranteed return. My home equity will have a low rate of return...
by Dulocracy
Thu Jul 30, 2015 12:43 pm
Forum: Investing - Theory, News & General
Topic: Mortgage as a reverse-bond technique
Replies: 36
Views: 1634

Re: Mortgage as a reverse-bond technique

Finally, bear in mind that I don't think one can time any of these scenarios. If the plan is to wait in cash until rates increase, that plan is IMHO likely to fail by a larger margin than any of those few-percent losses we see above. If the plan is to pay mortgage until rates increase rather than h...
by Dulocracy
Thu Jul 30, 2015 12:31 pm
Forum: Investing - Theory, News & General
Topic: Pros and cons of adding Roth Option to 401K Plan
Replies: 94
Views: 5393

Re: Pros and cons of adding Roth Option to 401K Plan

Whether or not it is the best option for them is for the employees to decide. The fact that it is a huge morale boost is more relevant for a company to consider. Do you think there is any liability for letting folks choose a poorer tax option for themselves because they go for the morale boost rath...
by Dulocracy
Thu Jul 30, 2015 11:48 am
Forum: Personal Finance (Not Investing)
Topic: Cash EE bond to pay down the mortgage?
Replies: 7
Views: 521

Re: Cash EE bond to pay down the mortgage?

They will have to pay whatever taxes are due at whatever time they pull the money out. In this case, I have two thoughts. First, leave the money in that account and then when it comes due, pay off a larger amount of the mortgage. The interest percentage is on their side to hold that money. Second- w...
by Dulocracy
Fri Jul 24, 2015 5:44 pm
Forum: Investing - Theory, News & General
Topic: Mortgage as a reverse-bond technique
Replies: 36
Views: 1634

Re: Mortgage as a reverse-bond technique

I am very interested to see that computation! And I agree that if interest rates rise sharply, TBM would THEN outperform the mortgage payment. I will note two things. First, I am anticipating a long, drawn out, slow rising interest rate environment. I might do it tomorrow. Can you give me a few sce...
by Dulocracy
Fri Jul 24, 2015 4:54 pm
Forum: Investing - Theory, News & General
Topic: Mortgage as a reverse-bond technique
Replies: 36
Views: 1634

Re: Mortgage as a reverse-bond technique

Ok, I should have tackled this first, but I did not have time while during the workday, so I will try now... It is bonds (in general -- none of this is specific to funds) that are guaranteed to go up faster after a drop, at least if they're safe enough, because bond value declines automatically mea...
by Dulocracy
Fri Jul 24, 2015 4:22 pm
Forum: Investing - Theory, News & General
Topic: Mortgage as a reverse-bond technique
Replies: 36
Views: 1634

Re: Mortgage as a reverse-bond technique

I also had another thought for you. If interest rates rise sharply, a holding of TBM will in fact massively outperform a mortgage payment. This is the case even if rates rise forever , like 1% higher every year, in fact it's even more so. I want to run a calculation when I have a little time, but m...
by Dulocracy
Fri Jul 24, 2015 3:53 pm
Forum: Investing - Theory, News & General
Topic: Mortgage as a reverse-bond technique
Replies: 36
Views: 1634

Re: Mortgage as a reverse-bond technique

It is not a fear of bonds, actually. In reality, it is the rational view that in a rising interest rate environment, it is most likely that bond funds (but not individual bonds) are going to lose money. This slow loss of money over time will likely result in a net negative. For that reason, I tried...
by Dulocracy
Fri Jul 24, 2015 3:42 pm
Forum: Investing - Theory, News & General
Topic: Mortgage as a reverse-bond technique
Replies: 36
Views: 1634

Re: Mortgage as a reverse-bond technique

[quote="asif408"] I really suggest you go back to basic stock/bond 101. Stocks, or shares of stock, represent an ownership interest in a corporation. Bonds are a form of long-term debt in which the issuing corporation promises to pay the principal amount at a specific date. Stocks don't gu...
by Dulocracy
Fri Jul 24, 2015 3:25 pm
Forum: Investing - Theory, News & General
Topic: Mortgage as a reverse-bond technique
Replies: 36
Views: 1634

Re: Mortgage as a reverse-bond technique

For what it's worth, there also exist floating rate bonds, and interest-rate hedged bond funds (say, long corporates, short Treasuries) with a duration of zero. I don't suggest you invest in either, by the way. I think your fear of bonds is irrational. It is not a fear of bonds, actually. In realit...
by Dulocracy
Fri Jul 24, 2015 3:15 pm
Forum: Investing - Theory, News & General
Topic: Mortgage as a reverse-bond technique
Replies: 36
Views: 1634

Re: Mortgage as a reverse-bond technique

I think the idea is makes sense, but don't understand the accounting at the end of the mortgage. I think you would want to account for the accumulated mortgage prepayments by forever after pretending you had $40,000 more in fixed income assets than you actually do. The accounting at the end works l...
by Dulocracy
Fri Jul 24, 2015 2:08 pm
Forum: Investing - Theory, News & General
Topic: Mortgage as a reverse-bond technique
Replies: 36
Views: 1634

Mortgage as a reverse-bond technique

I cannot sleep well at night with bond funds in my portfolio. I recognize, however, that having some stability in my financial picture is a good idea. I also recognize that at 37 (38 in a few months), I should be setting aside some money into a fixed-income. I have read some about this on this site ...
by Dulocracy
Tue Jul 21, 2015 2:21 pm
Forum: Local Chapters and Bogleheads Community
Topic: livesoft surpasses 40,000 posts!
Replies: 74
Views: 4894

Re: livesoft surpasses 40,000 posts!

livesoft wrote:Thanks for this thread, so that I can add to my post count. :)


Except I have never seen livesoft post just to get numbers up. Much of what I have learned on this site is because of lifesoft's patience and logical method of presentation.

THANKS!
by Dulocracy
Fri Jul 17, 2015 1:55 pm
Forum: Investing - Theory, News & General
Topic: Pros and cons of adding Roth Option to 401K Plan
Replies: 94
Views: 5393

Re: Pros and cons of adding Roth Option to 401K Plan

We offer Roth options in our 401k. It has been extremely well received. I respect livesoft a great deal, but I am going to disagree with the paternalistic view that we should decide for employees what is best for them. That is dangerous territory that opens liability. Also, who am I to know that the...
by Dulocracy
Thu Jul 16, 2015 5:16 pm
Forum: Investing - Theory, News & General
Topic: Retirees: Did you spend much time wringing your hands over Retirement Savings as Many on Forum Do Today?
Replies: 98
Views: 14698

Re: Retirees: Did you spend much time wringing your hands over Retirement Savings as Many on Forum Do Today?

No, there are no guarantees that living beneath your means and saving the rest will lead to financial independence, but it is a better path than spending everything you have and hoping more will come along. I agree wholeheartedly. Unfortunately, it seems that even my current level of sacrifice is n...
by Dulocracy
Thu Jul 16, 2015 5:14 pm
Forum: Personal Finance (Not Investing)
Topic: Dave Ramsey ELP's [Endorsed Local Providers]
Replies: 9
Views: 1533

Re: Dave Ramsey ELP's

I have used one and think he is fantastic. The Dave Ramsey ELP for investing in my area is a West Point graduate who was a Major in the Army. He is straight-forward and a good guy. I trust him enough to send clients to him. I know that the boglehead way is to reduce fees, but lets face it, many peop...
by Dulocracy
Thu Jul 16, 2015 4:25 pm
Forum: Investing - Help with Personal Investments
Topic: Pulling equity out of home to invest?
Replies: 71
Views: 4936

Re: Pulling equity out of home to invest?

Have you seen the moving Trading Places with Dan Akroyd and Eddie Murphy? The Duke brothers did just that. When the movie ended, they were homeless. If the truth of an 80's movie is not good enough for you, I understand there are a lot of respected experts who recommend against that. But really, the...
by Dulocracy
Thu Jul 16, 2015 4:09 pm
Forum: Investing - Theory, News & General
Topic: Where do you put your cash?
Replies: 64
Views: 7830

Re: Where do you put your cash?

Instead of making a snarky comment of: all of my cash somehow makes it into my wife's pocketbook....

I will also say I keep my cash in Ally bank. Not always the top one, but often has been. When it is not, it is near the top. For simplicity, I keep cash there.
by Dulocracy
Thu Jul 16, 2015 9:34 am
Forum: Personal Finance (Not Investing)
Topic: The Good the Bad and the Ugly of real estate
Replies: 79
Views: 10463

Re: The Good the Bad and the Ugly of real estate

I have one real estate investment: an owner (me) financed property that is being sold. It is a headache and a half. Of course, I did not choose the property, the purchasers, or the location of the property. Someone was handling it for me. It has been a learning experience. Despite the bad experience...
by Dulocracy
Thu Jul 09, 2015 5:05 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage - 30 year or 15 year?
Replies: 56
Views: 4895

Re: Mortgage - 30 year or 15 year?

pass81 wrote:Kids: Child on the way, due end of the year


30 year. You may not need flexibility. You may. That interest difference is not enough to give up flexibility in a situation like this.
by Dulocracy
Thu Jul 09, 2015 5:03 pm
Forum: Investing - Help with Personal Investments
Topic: Silly question...better to invest now in intl stocks?
Replies: 24
Views: 3032

Re: Silly question...better to invest now in intl stocks?

It does seem ironic, in volatile markets, that even Bogleheads conflate "trading" with "investing". Folks, if you want to play the "ups-and-downs", at least be honest. You're "trading". Mind you, there's nothing wrong with that. Just establish a trading accou...
by Dulocracy
Thu Jul 09, 2015 4:56 pm
Forum: Investing - Theory, News & General
Topic: Retirees: Did you spend much time wringing your hands over Retirement Savings as Many on Forum Do Today?
Replies: 98
Views: 14698

Re: Retirees: Did you spend much time wringing your hands over Retirement Savings as Many on Forum Do Today?

As a non-retiree, the message I have gotten from this post is mostly: "Of COURSE I did not worry. I had a fat pension, and all is well." As someone without a pension (who was just told that 16.5% is not oversaving, but undersaving), I am now in the wringing-hands club.
by Dulocracy
Thu Jul 09, 2015 4:35 pm
Forum: Investing - Theory, News & General
Topic: What CFOs expect for stock market returns
Replies: 18
Views: 2199

Re: What CFOs expect for stock market returns

Thank you for the article! As expected returns are going lower and lower, how much should we be saving. It used to be that you were supposed to save 10%. More recently I heard 15%. Are we up to 17, 18, or 20%? Rick, I would be interested to know whether you think we should be saving more. If so, wh...
by Dulocracy
Thu Jul 09, 2015 4:25 pm
Forum: Personal Finance (Not Investing)
Topic: Amex Premium Car Rental Protection--Worth it?
Replies: 20
Views: 1163

Re: Amex Premium Car Rental Protection--Worth it?

I think you mean Fidelity AMEX does NOT participate. The premium auto insurance only seems to be available from 'real' AMEX cards. The Costco card run by AMEX has it, but the Fidelity card is run by FIA and did not participate, at least last time I asked them. Funny that you mention Fidelity and Co...
by Dulocracy
Thu Jul 09, 2015 1:36 pm
Forum: Personal Finance (Not Investing)
Topic: Amex Premium Car Rental Protection--Worth it?
Replies: 20
Views: 1163

Re: Amex Premium Car Rental Protection--Worth it?

How do you get said protection? I hold two Amex cards and was previously unaware of it.
by Dulocracy
Wed Jul 08, 2015 4:54 pm
Forum: Investing - Theory, News & General
Topic: What CFOs expect for stock market returns
Replies: 18
Views: 2199

Re: What CFOs expect for stock market returns

Thank you for the article! As expected returns are going lower and lower, how much should we be saving. It used to be that you were supposed to save 10%. More recently I heard 15%. Are we up to 17, 18, or 20%? Rick, I would be interested to know whether you think we should be saving more. If so, wha...
by Dulocracy
Fri Jul 03, 2015 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: Obsessing towards zero balance on credit card.
Replies: 135
Views: 10874

Re: Obsessing towards zero balance on credit card.

Well it sounds like you're not the only one obsessing. I'm surprised others posted that they check and pay their credit card multiple times a month! Bizarre. What the heck is up with that? What's the purpose? Why make a project out of it? Please enlighten me. I pay mine off in full when due. Simple...
by Dulocracy
Fri Jul 03, 2015 2:51 pm
Forum: Investing - Help with Personal Investments
Topic: How to play Europe
Replies: 11
Views: 1557

Re: How to play Europe

A little early to buy Greece. That market still has a long way to fall. It's not clear what will happen after the referendum, i.e., even with a yes vote whether the current will really leave power, how long a transition would take, etc. On the other hand, a bit late for the rest of Europe, which ha...
by Dulocracy
Fri Jul 03, 2015 2:48 pm
Forum: Personal Consumer Issues
Topic: Best place to order business cards
Replies: 12
Views: 2354

Re: Best place to order business cards

To be clear, I am not recommending exorbitant cards. Good quality basic cards. Mine cost $75.00 per 1000. I could get a $45.00 version, but am I going to quibble over $30 when I am talking to people about entrusting me with thousands of dollars worth of work? Mine are thick card stock; manila with b...
by Dulocracy
Fri Jul 03, 2015 2:24 pm
Forum: Investing - Help with Personal Investments
Topic: Question Regarding ETF versus Mutual Fund...
Replies: 9
Views: 1049

Re: Question Regarding ETF versus Mutual Fund...

In any event, even with the vanguard option, my advice is the same. Retirement accounts... use mutual funds. Taxable accounts: 1) Determine allocation 2) Choose fund 3) If there is an ETF version of the fund, go with that. 4) Do not use ETFs until you understand them, especially the ask/bid spread T...
by Dulocracy
Fri Jul 03, 2015 12:37 pm
Forum: Investing - Help with Personal Investments
Topic: Question Regarding ETF versus Mutual Fund...
Replies: 9
Views: 1049

Re: Question Regarding ETF versus Mutual Fund...

Right now, the tax issue is not a real issue for me, but I hope it will be someday (meaning I will have enough invested for it to matter). For that reason, if available, I go ahead and get the etf version of the fund I want. Again, I choose the fund first, and then I choose whether to get a mutual ...
by Dulocracy
Fri Jul 03, 2015 12:14 pm
Forum: Investing - Help with Personal Investments
Topic: Question Regarding ETF versus Mutual Fund...
Replies: 9
Views: 1049

Re: Question Regarding ETF versus Mutual Fund...

Livesoft is correct. However, if you have a fund that is not an index fund, you may face tax consequences in a mutual fund that you otherwise would not face. Also, there is the whole aspect of someone else selling their portion of the fund affecting your portion. All mumbo-jumbo. Simple answer: In a...
by Dulocracy
Fri Jul 03, 2015 11:11 am
Forum: Personal Finance (Not Investing)
Topic: Obsessing towards zero balance on credit card.
Replies: 135
Views: 10874

Re: Obsessing towards zero balance on credit card.

For consideration: I was told that if you get your balance to $0, you can "trick" the credit agencies into thinking you have an unused card. That is, it is reported at $0 for the month. Next month, when you use it again, you are then hitting your credit (it thinks you are starting to use c...
by Dulocracy
Fri Jul 03, 2015 11:04 am
Forum: Investing - Theory, News & General
Topic: U.S. Bond Market Bubble
Replies: 44
Views: 4503

Re: U.S. Bond Market Bubble

To summarize comments on bond bubble questions before: 1) It is not a bubble, as that implies an improper valuation at present. 2) Bonds likely WILL see a drag in value as interest rates rise. 3) You need fixed income because if the stock market crashes, you need to have something else to anchor you...
by Dulocracy
Fri Jul 03, 2015 10:47 am
Forum: Investing - Help with Personal Investments
Topic: How am I doing? Investing at 27.
Replies: 4
Views: 1079

Re: How am I doing? Investing at 27.

toto238 wrote:
knowsnothing wrote:All I had to do was read the title and I can say better than 80% of your peers. Answered this while you were editing.


Too true. +1


+1 for two reasons:
1) You are investing at 27.
2) You found this site.
by Dulocracy
Fri Jul 03, 2015 10:12 am
Forum: Investing - Help with Personal Investments
Topic: How to play Europe
Replies: 11
Views: 1557

Re: How to play Europe

I anticipate that having a 0% allocation to international bonds is going to be good for me in this situation, but it was not scheduled with this in mind. As far as taking advantage of the situation, I think that one way or another, Europe is going to do well. Investors are wary because of the troubl...
by Dulocracy
Fri Jul 03, 2015 9:46 am
Forum: Investing - Theory, News & General
Topic: Warning Signs [Economic health indicators]
Replies: 246
Views: 31941

Re: Warning Signs

All of these talks and charts. My gut tells me that Europe is going to explode in next few years with great prosperity. They will bring the US along with it. My gut index has about a 50% success rating. Therefore, I will: 1) Stay the course with my 60 US/40 international ratio. The one thing that al...

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