Search found 1071 matches

by Dulocracy
Fri Jul 24, 2015 5:44 pm
Forum: Investing - Theory, News & General
Topic: Mortgage as a reverse-bond technique
Replies: 33
Views: 1401

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: 33
Views: 1401

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: 33
Views: 1401

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: 33
Views: 1401

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: 33
Views: 1401

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: 33
Views: 1401

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: 33
Views: 1401

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: 33
Views: 1401

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: 4839

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: 93
Views: 5196

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: 14673

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: 1526

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: 4911

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: 7717

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: 10381

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: 4877

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: 3029

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: 14673

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: 2196

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: 1157

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: 1157

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: 2196

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: 10840

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: 1555

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: 2342

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: 1043

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: 1043

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: 1043

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: 10840

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: 4495

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: 1075

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: 1555

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: 31890

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...
by Dulocracy
Fri Jul 03, 2015 9:22 am
Forum: Personal Finance (Not Investing)
Topic: Amex 6.99% interest offer
Replies: 20
Views: 2910

Re: Amex 6.99% interest offer

Diverging slightly from your question, can someone tell me what are the benefits of holding an Amex related card? They have so many different flavors it's hard to discern what benefit I would get from it - I don't travel much or enough to say that accumulating X number of points would permit me to ...
by Dulocracy
Fri Jul 03, 2015 8:59 am
Forum: Personal Finance (Not Investing)
Topic: financial adviser told me not to invest too much in 401k
Replies: 92
Views: 10063

Re: financial adviser told me not to invest too much in 401k

don't walk...run away Exactly the right advice. Your money will grow tax free. EVEN IF you pay more in taxes on it then, you have year after year after year of not paying taxes on capital gains and dividends... you defer your taxes to make the money grow like crazy. Essentially, if you think of it ...
by Dulocracy
Thu Jul 02, 2015 8:53 am
Forum: Investing - Help with Personal Investments
Topic: Should I invest in my part-time job's 401k?
Replies: 2
Views: 384

Re: Should I invest in my part-time job's 401k?

If your job ends and you have less than $5,000 in the 401k, it is highly likely that they will send you a check that you will have to jump to get into another 401k or IRA. I do not think it is worth the 0.05 to add this complexity to life. Of course, you may work there for years and years to come an...
by Dulocracy
Tue Jun 30, 2015 4:56 pm
Forum: Personal Consumer Issues
Topic: I'm Giving Up Golf
Replies: 40
Views: 7343

Re: I'm Giving Up Golf

For what it is worth, I gave up golf in my late 20's/ early 30's. When your friends cheat FOR you so you won't feel so bad, you know you should step out. I am great at driving the cart and pouring the beer, though. (Not at the same time). Joking aside, I am sorry that something you enjoyed is no lon...
by Dulocracy
Tue Jun 30, 2015 4:38 pm
Forum: Investing - Help with Personal Investments
Topic: No bonds?? All Equity portfolio in 20s
Replies: 74
Views: 9139

Re: No bonds?? All Equity portfolio in 20s

g$$ wrote:#YOLO


Something I never would have expected to see on this website. The comment goes right up there with the discussion of horse semen as an investment as things on this site that surprised me.
by Dulocracy
Tue Jun 30, 2015 4:33 pm
Forum: Investing - Theory, News & General
Topic: The new "bond king's" protection from Greece and Puerto Rico
Replies: 3
Views: 977

Re: The new "bond king's" protection from Greece and Puerto Rico

"Got bonds?" Be safe out there. :happy I have a debt: my mortgage. Lacking confidence in bonds, I can say: No. I have no bonds. What I do have is a regular extra payment I put on my mortgage. It is really my only deflation hedge, and I know it is not the same as having bonds, but it is th...
by Dulocracy
Tue Jun 30, 2015 4:20 pm
Forum: Investing - Theory, News & General
Topic: What ratio are you stocks/bonds and how old are you?
Replies: 278
Views: 27788

Re: What ratio are you stocks/bonds and how old are you?

We are doing something odd, so it depends on how you count it. We are using an Age - 15 formula based on my wife's age, since she is 9 years younger than I am. HOWEVER, that money does not go into bonds. With all the talk, we are hesitant to go into bonds. We are using a reverse-bond strategy of pay...
by Dulocracy
Tue Jun 30, 2015 2:31 pm
Forum: Personal Consumer Issues
Topic: Will removing a wood burning stove reduce my home value?
Replies: 16
Views: 1799

Re: Will removing a wood burning stove reduce my home value?

This is purely anecdotal, as I live in Georgia and do not have numbers for you, but many people here (although certainly not all) prefer a wood fireplace to gas. However, unless you found someone looking for a rustic home, I cannot imagine the stove removal harming the value. Rather, I think that op...
by Dulocracy
Tue Jun 30, 2015 2:07 pm
Forum: Investing - Theory, News & General
Topic: Graham's "margin of safety" for US stocks (6-29-15)
Replies: 24
Views: 4620

Re: Graham's "margin of safety" for US stocks (6-29-15)

It is an interesting theory and read. Thank you for posting it. Personally, I will not be acting on it for my retirement accounts, as my written plan pre-determines my investments whether it is raining or the sun is shining in the investing world. Still, when I get closer to retirement, understandin...
by Dulocracy
Tue Jun 23, 2015 7:11 pm
Forum: Investing - Theory, News & General
Topic: Why do Bogleheads/BiggerPocketers think there is only one way?
Replies: 123
Views: 14518

Re: Why do Bogleheads/BiggerPocketers think there is only one way?

OP: I max my 401k and Roth IRA first. Second, I am building money in taxable for real estate. My goal is to have four properties completely paid off by the time I die. (My wife is somewhat younger than I am, and I want to leave both assets and an income stream for her.) Why am I doing this? Diversif...
by Dulocracy
Tue Jun 23, 2015 3:52 pm
Forum: Personal Consumer Issues
Topic: Best place to order business cards
Replies: 12
Views: 2342

Re: Best place to order business cards

Your first question is the correct one: better. Not the second question: cheaper. A business card is a representation of you as a business person. If I see that someone got free cards from vistaprint, I will never do business with them. I am too concerned that they are not running a business properl...
by Dulocracy
Tue Jun 16, 2015 4:57 pm
Forum: Personal Consumer Issues
Topic: Title Search Types and Costs
Replies: 5
Views: 578

Re: Title Search Types and Costs

What state/county is the property in? Sometimes online/county resources are sufficient and you can search yourself for free. In other regions, the cost of obtaining copies may be prohibitive and makes it worthwhile to shop around for a report. Do not do it yourself if you have not done it before. A...
by Dulocracy
Tue Jun 16, 2015 4:46 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Allocation - Continuous Change
Replies: 6
Views: 1195

Re: Bond Allocation - Continuous Change

I would not constantly change like that. It would get overly burdensome. We target my wife's age less 15 as our percentage. I was worried about the end of the year when she will be older for a few months, but that comes after our investment goes in (our strategy is a little complicated). I realized ...
by Dulocracy
Tue Jun 16, 2015 4:42 pm
Forum: Personal Finance (Not Investing)
Topic: Need help finding a CPA knowledgable about expat issues.
Replies: 6
Views: 888

Re: Need help finding a CPA knowledgable about expat issues.

Are you legally a resident of a particular state? You will want a CPA from that state. There are at times some state-specific issues that can arise. If you are looking for a CPA from Georgia, PM me and I can give you a referral. (All of my contracts specifically state I do NOT do tax advice, which m...
by Dulocracy
Tue Jun 16, 2015 4:35 pm
Forum: Investing - Help with Personal Investments
Topic: VDAIX vs. VTSMX - which is more inflation proof ??
Replies: 14
Views: 1313

Re: VDAIX vs. VTSMX - which is more inflation proof ??

There are so many other factors that come into play that you cannot truly identify if one did better than the other BECAUSE of its inflation protection. It is basically a void bet. At some times, value does better. At others, growth does better. This can be based on a sudden feeling of euphoria amon...
by Dulocracy
Tue Jun 16, 2015 4:25 pm
Forum: Investing - Theory, News & General
Topic: Why High Equity Allocation in Retirement
Replies: 82
Views: 10805

Re: Why High Equity Allocation in Retirement

If one does not assume a certain level of return, there is no point in investing. I know that the world may collapse into a "gold and ammo" situation. In that case, I am doomed anyway. I am going to presume that the future will be different from the past, but it will look a little like it....
by Dulocracy
Tue Jun 16, 2015 3:08 pm
Forum: Personal Consumer Issues
Topic: Wedding Reception
Replies: 68
Views: 8484

Re: Wedding Receiption

We had bourbon, scotch, rum, vodka. Everyone can find something they like with that line-up. Buy in bulk and you will get a discount. We basically had some basics (orange and cranberry juice, coke, etc.) but did not go all out with the extras. A very basic open bar. We got no complaints and a lot of...

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