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Re: Can I retire early?

In 2008-9 I was a bit of a deer in headlights. I did not sell, but also did not have the glee of those buying on discount. Perhaps 60/40 will smooth things out a bit. I'll ponder it. Certainly 50/50 by ten years into early retirement, if not sooner, makes sense. You've won the game... I would start...
by HomerJ
Mon Jul 21, 2014 12:06 am
 
Forum: Investing - Help with Personal Investments
Topic: Can I retire early?
Replies: 28
Views: 3731

Re: Helping My Grandmother

She should buy a SPIA (Single Premium Immediate Annuity) with the $30k... At her age it will pay her around $180 a month or a 7% return... until the day she dies. Note that the money is GONE. She pays a single premium ($30k), and the insurance company pays her $180 a month until she dies. If she die...
by HomerJ
Sun Jul 20, 2014 11:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: Helping My Grandmother
Replies: 45
Views: 2142

Re: Should I use margin to buy a balanced fund?

Homework question #3: Have you read this thread yet... http://www.bogleheads.org/forum/viewtopic.php?t=5934 I have not read it, but I definitely will. Thanks! If it's too boring for you, skip forward to page 10 or so (look for Sept 2008-Nov 2008 posting dates), and watch poor MarketTimer go $200k i...
by HomerJ
Thu Jul 17, 2014 4:47 pm
 
Forum: Investing - Theory, News & General
Topic: Should I use margin to buy a balanced fund?
Replies: 89
Views: 4618

I'm a genius!

Was searching through some old posts for something else, and found this little nugget posted by myself... In March 2009... Man, I'm smart... or maybe just lucky :) Those who invested in 1999 (10 years ago) who currently have absolutely nothing show for their investments... will STILL likely end up i...
by HomerJ
Thu Jul 17, 2014 2:02 pm
 
Forum: Investing - Theory, News & General
Topic: I'm a genius!
Replies: 13
Views: 3099

Re: Should I use margin to buy a balanced fund?

It's not every day that you run into an Amazon review from a nobel prize winner. Here's Robert Shiller's Amazon review of the Ayres and Nalebuff book. I have been getting flak for endorsing the Ayres and Nalebuff book (see above on Amazon.com), just as the authors are for writing it. People are thi...
by HomerJ
Thu Jul 17, 2014 11:35 am
 
Forum: Investing - Theory, News & General
Topic: Should I use margin to buy a balanced fund?
Replies: 89
Views: 4618

Re: Should I use margin to buy a balanced fund?

Homework question: Which balanced funds dropped less than 37% in the past 80 years? Have any dropped by 58%? Wellington is easy to check. The others would need to be approximated by their indexes. Homework question #1: What happens if the fund you pick DOES drop more than 37%? Is the extra potentia...
by HomerJ
Thu Jul 17, 2014 11:32 am
 
Forum: Investing - Theory, News & General
Topic: Should I use margin to buy a balanced fund?
Replies: 89
Views: 4618

Re: New vehicle...GMC Acadia, Chevy Traverse, or Buick Encla

For heaven's sake, the towing capacity wouldn't even be needed at this time, rather for the future. Why do you need towing capacity in the future? How often will you need to tow and go off-road? Maybe you need two cars... One for daily driving, and one for occasional hauling (this one could be an o...
by HomerJ
Mon Jul 14, 2014 3:54 pm
 
Forum: Personal Consumer Issues
Topic: New vehicle...GMC Acadia, Chevy Traverse, or Buick Enclave?
Replies: 57
Views: 4073

Re: In a crash, will you re-balance to maintain your target

For those who answered they will re-balance to the target gradually over time such as with new contributions, I have another q. Why gradually? If ratio deviates enough, shouldn't you re-balance immediately? Is it because of tax reasons? Or market correction? Or not committed to your target? What is...
by HomerJ
Mon Jul 14, 2014 3:20 pm
 
Forum: Investing - Theory, News & General
Topic: In a crash, will you re-balance to maintain your target AA?
Replies: 64
Views: 4111

Re: [Poll] Are you more risk averse than average?

I created this poll because there's a thread asking about 100% stock. Most replies were against it. Curious whether BH think they are more risk averse than average. FYI, I'm not implying average investors invest 100% stocks. I'm very conservative with my investments... 50/50 right now stocks/bonds ...
by HomerJ
Mon Jul 14, 2014 2:56 pm
 
Forum: Investing - Theory, News & General
Topic: [Poll] Are you more risk averse than average?
Replies: 36
Views: 2588

Re: Unique situation

Currently making about 60-80k/month give or take, but that can change at ANY moment. How much could you LOSE a month? What part of your portfolio is your gambling stake? Is that separate from the million in Schwab? How much do you have set aside? How long could you withstand a losing streak? Does t...
by HomerJ
Mon Jul 14, 2014 1:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: Unique situation
Replies: 17
Views: 2739

Re: In a crash, will you re-balance to maintain your target

If you have $600K in stocks and $400K in Treasury bonds, you at least have the comfort that you will have $400K even if stocks go to zero. If the stock market goes to zero then the nation as a whole is bankrupt and there's a good chance those Treasuries won't be worth much either. Okay not zero, bu...
by HomerJ
Mon Jul 14, 2014 1:15 pm
 
Forum: Investing - Theory, News & General
Topic: In a crash, will you re-balance to maintain your target AA?
Replies: 64
Views: 4111

Re: In a crash, will you re-balance to maintain your target

The better question than "will" you rebalance in a crash is, "Did" you rebalance in the last crash? Actually, here's a list of possible spin off poll questions that have crossed my mind after reading Bogleheads this week: - If you are 100% invested in stocks, in what year did yo...
by HomerJ
Mon Jul 14, 2014 12:24 pm
 
Forum: Investing - Theory, News & General
Topic: In a crash, will you re-balance to maintain your target AA?
Replies: 64
Views: 4111

Re: Will you change your AA based on market performance?

ralph124cf wrote:in 2008-2009, when some of the individual stocks that I own dropped 80%-90%. They have done very well since.


That is a dangerous game... The market as a whole is 99.99% likely to come back.... Individual stocks... not nearly as good odds.
by HomerJ
Mon Jul 14, 2014 10:25 am
 
Forum: Investing - Theory, News & General
Topic: In a crash, will you re-balance to maintain your target AA?
Replies: 64
Views: 4111

Re: In a crash, will you re-balance to maintain your target

Suppose you are a 80/20 investor and there's no personal change (same age, same job, etc.) If the stock suddenly drops by 25% so your new portfolio weights are 75% (= 0.75*0.80/(0.75*80%+0.20)) and 25%. Will you re-balance back to 80/20? You can also rebalance by changing all your new money to 100%...
by HomerJ
Mon Jul 14, 2014 10:22 am
 
Forum: Investing - Theory, News & General
Topic: In a crash, will you re-balance to maintain your target AA?
Replies: 64
Views: 4111

Re: Family member as Financial Advisor

Yeah, it will be awkward, but it will never be easier than now. I would just say that upon reflection, you decided you don't want to mix business with family. And I don't think I would try to talk about costs/ERs/fees as a justification. "Dad, we just don't want to mix business with family. It...
by HomerJ
Fri Jul 11, 2014 3:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: Family member as Financial Advisor
Replies: 29
Views: 2348

Re: Engineer career change

Heh.

Image
by HomerJ
Fri Jul 11, 2014 11:51 am
 
Forum: Personal Finance (Not Investing)
Topic: Engineer career change
Replies: 55
Views: 5381

Re: The Millionaire Next Door: Are You One?

The best way to get a million bucks is to have a high paying job and save 15%. It is a lot easier than having a job that pays half as much and needing to save 30%. Not if the guy with the high-paying job is paying 5x as much for housing... The lower-paid guy may indeed have more disposable income t...
by HomerJ
Fri Jul 11, 2014 10:23 am
 
Forum: Personal Consumer Issues
Topic: The Millionaire Next Door: Are You One?
Replies: 187
Views: 22043

Re: Finally an audience with my brother on Finances

He asked my opinion based on my and other's experience on this forum. Responding with a "go do your own research" doesn't reflect well on the community in my opinon. Give him some books to read... The Four Pillars of Investing is an excellent one. He needs to understand for himself (not b...
by HomerJ
Thu Jul 10, 2014 11:32 am
 
Forum: Investing - Help with Personal Investments
Topic: Finally an audience with my brother on Finances
Replies: 33
Views: 4067

Re: Disclosing Financial Position

Are you asking if you should keep it a secret forever? Or until AFTER you're married? Or until AFTER you're engaged? Or until AFTER you're serious (dating only each other, the "L" word has been spoken, and "boyfriend/girlfriend" is used during introductions) My opinion: I wouldn'...
by HomerJ
Wed Jul 09, 2014 4:23 pm
 
Forum: Personal Finance (Not Investing)
Topic: Disclosing Financial Position
Replies: 13
Views: 1163

Re: The Millionaire Next Door: Are You One?

The best way to get a million bucks is to have a high paying job and save 15%. It is a lot easier than having a job that pays half as much and needing to save 30%. Not if the guy with the high-paying job is paying 5x as much for housing... The lower-paid guy may indeed have more disposable income t...
by HomerJ
Wed Jul 09, 2014 12:27 pm
 
Forum: Personal Consumer Issues
Topic: The Millionaire Next Door: Are You One?
Replies: 187
Views: 22043

Re: Easy careers to last me to retirement?

Since you have IT experience, get a job in a NOC (Network Operating Center) monitoring servers and backups.
by HomerJ
Mon Jul 07, 2014 5:10 pm
 
Forum: Personal Finance (Not Investing)
Topic: Easy careers to last me to retirement?
Replies: 92
Views: 13425

Re: When you retire you plan to?

countdown wrote:Anyone ever in a position where they kept their primary residence where a rental studio on the property either offset their costs or provided additional income?


All that equity invested would probably provide a lot MORE income than that rental studio.
by HomerJ
Mon Jul 07, 2014 12:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: When you retire you plan to?
Replies: 44
Views: 3337

Re: When you retire you plan to?

Original plan was to sell the big house in the suburbs, buy a smaller house on a lake (same price though) in a warmer state like Arkansas or Texas. Tired of winters. We recently bought a lake condo that's much smaller and much cheaper than our primary house (but high end), and we discovered we reall...
by HomerJ
Mon Jul 07, 2014 10:59 am
 
Forum: Personal Finance (Not Investing)
Topic: When you retire you plan to?
Replies: 44
Views: 3337

Re: I Hit My Number Today!

I have trouble coming up with a 'number'. I've heard or read that one would need about twelve times one's current job income. Again, the how and why of this 'number' is beyond me. It's just something that wiser heads have figured out. 25-30x expenses. That might make more sense to you. 12x one's cu...
by HomerJ
Fri Jul 04, 2014 3:58 pm
 
Forum: Personal Finance (Not Investing)
Topic: I Hit My Number Today!
Replies: 31
Views: 3285

Re: I Hit My Number Today!

I think people without traditional pensions tend to be more "the number" oriented than those with because they have to provide their own pension. But wouldn't they prefer a larger self-provided pension than a smaller one? I always like more; I guess I am greedy that way. Time > money. I'm...
by HomerJ
Fri Jul 04, 2014 3:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: I Hit My Number Today!
Replies: 31
Views: 3285

Re: Adult child @ home

wahnfried wrote:but if push comes to shove , do I have a legal right to evict an adult stepchild?


Might as well just get divorced and get your own house, since that will be the result.
by HomerJ
Fri Jul 04, 2014 3:03 pm
 
Forum: Personal Consumer Issues
Topic: Adult child @ home
Replies: 23
Views: 2143

Re: Using a variable annuity to pre-fund an SPIA

Thanks, HomerJ - yes I have TSM and TISM and tax-managed small cap, among others - my issue is I've moved to a conservative 35:65 portfolio so have $3.5mm of fixed income allocation and only ~$1.5mm of tax-preferred space...my 35% equities include 10% REITs which are in IRAs, thus shrinking further...
by HomerJ
Thu Jul 03, 2014 3:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: Using a variable annuity to pre-fund an SPIA
Replies: 30
Views: 1337

Re: Using a variable annuity to pre-fund an SPIA

create more tax-sheltered space to minimize taxes in the next 10-20 years If you can keep the expenses below 1%, then JeffNat may work for you. But there's also the option of going with tax-efficient and tax-managed funds. The basic Total Stock Market Index Fund is very tax-efficient. Pretty much z...
by HomerJ
Thu Jul 03, 2014 2:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: Using a variable annuity to pre-fund an SPIA
Replies: 30
Views: 1337

Re: In retirement you expect you standard of living to?

In order for your standard of living to go up a lot, one has to save a lot more. If I hit 55, and I can retire with the exact same standard of living I have today, I'm going to take that deal. Of course, my standard of living is pretty good right now. The other option is work an extra 5-10 years, so...
by HomerJ
Thu Jul 03, 2014 10:54 am
 
Forum: Personal Finance (Not Investing)
Topic: In retirement you expect your standard of living to?
Replies: 55
Views: 4502

Re: Using a variable annuity to pre-fund an SPIA

Their minimum expenses are 0.51%, plus the expenses of the fund they put you in... If you choose a low-cost Vanguard fund, they charge you another 0.35%... Actually, re-reading it, it appears the range of expenses from 0.51% - 3.59% (!!) include the expenses of the fund they put you in, and any low...
by HomerJ
Thu Jul 03, 2014 1:52 am
 
Forum: Investing - Help with Personal Investments
Topic: Using a variable annuity to pre-fund an SPIA
Replies: 30
Views: 1337

Re: Using a variable annuity to pre-fund an SPIA

https://www.jeffnat.com/secure/jef/products/productsummary.cfm?docid=088674F71FAE9B0CB9D48FCAC08B57C5ABAA910EC01BF12BA20423D04AD7576F&product=JMON3&CFID=426411&CFTOKEN=773fde89e58178d-CB155A17-CF51-FE5F-0F5A5AE6D452BD6C&jsessionid=62FE4275B672EB2E6034DB3C884B6328.cfusion Page 9 It's ...
by HomerJ
Thu Jul 03, 2014 1:41 am
 
Forum: Investing - Help with Personal Investments
Topic: Using a variable annuity to pre-fund an SPIA
Replies: 30
Views: 1337

Re: How risky is https: over public wi-fi?

nisiprius wrote:if you see a lock symbol on the screen, isn't it true that your communications are encrypted within your device, before they are sent over wi-fi, and therefore are moderately secure?


Yes, that's correct. I still wouldn't access my bank or Vanguard website from a public wifi if I could help it.
by HomerJ
Wed Jul 02, 2014 2:50 pm
 
Forum: Personal Consumer Issues
Topic: How risky is https: over public wi-fi?
Replies: 15
Views: 2320

Re: Using a variable annuity to pre-fund an SPIA

There is no way you are only paying $240 a year in "fees". You may only see a bill for $240, but there are expenses being deducted from your account that equal far more than that. Their minimum expenses are 0.51%, plus the expenses of the fund they put you in... If you choose a low-cost Va...
by HomerJ
Wed Jul 02, 2014 11:19 am
 
Forum: Investing - Help with Personal Investments
Topic: Using a variable annuity to pre-fund an SPIA
Replies: 30
Views: 1337

Re: GoPro IPO

http://sites.garmin.com/virb/?lang=en&country=US

Garmin Virb.. Cheaper than a GoPro, works just as well... Action 1080p HD camara with image stabilization.
by HomerJ
Tue Jul 01, 2014 2:04 pm
 
Forum: Investing - Theory, News & General
Topic: GoPro IPO
Replies: 29
Views: 2608

Re: Using a variable annuity to pre-fund an SPIA

Further reading of the prospectus, I find this... The Company imposes a Low Cost Fund Platform Fee, in the amount of .05% - 0.35% annually on Contract Value invested in certain Investment Portfolios. This is an additional fee they impose on you if you pick any of the low-cost Vanguard funds. All of ...
by HomerJ
Tue Jul 01, 2014 1:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: Using a variable annuity to pre-fund an SPIA
Replies: 30
Views: 1337

Re: Using a variable annuity to pre-fund an SPIA

sheltering the income from tax for the next 10-20 years Put the money into a tax-efficient index fund instead, or a muni-bond fund. You'll pay far more in fees than you will in taxes. $1 million in the Total Stock Market Index fund will return $20,000 a year or so (2%) in dividends to you, which wi...
by HomerJ
Tue Jul 01, 2014 1:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: Using a variable annuity to pre-fund an SPIA
Replies: 30
Views: 1337

Re: do you lie about your finances to friends

sscritic wrote:Now you google your own address. How many sources did you find for what you paid for your house?


Ugh, I hate that picture of my house when I google my address... It's from like 4 years ago when my yard looked terrible... :)
by HomerJ
Tue Jul 01, 2014 9:19 am
 
Forum: Personal Finance (Not Investing)
Topic: do you lie about your finances to friends
Replies: 103
Views: 8819

Re: do you lie about your finances to friends

sscritic wrote:I don't lie to friends about my finances, which is why I lie to you guys. I have to lie to someone, and you are it.


We're not your friends?
by HomerJ
Tue Jul 01, 2014 9:10 am
 
Forum: Personal Finance (Not Investing)
Topic: do you lie about your finances to friends
Replies: 103
Views: 8819

Re: do you lie about your finances to friends

I commute with someone who is always complaining about being behind the 8-ball financially... high consumer debt, underwater house, etc. the middle class is doomed!!! I make it seem like I am in the same boat as he, but I am not. I have gone through my ups and downs financially - and am by no means...
by HomerJ
Tue Jul 01, 2014 9:08 am
 
Forum: Personal Finance (Not Investing)
Topic: do you lie about your finances to friends
Replies: 103
Views: 8819

Re: The Millionaire Next Door: Are You One?

Our wealth accumulation score is 1.17 (net worth / ((age/10) * income))), so I guess we are squarely in the average category, though net worth is over $1MM. Take that "wealth accumulation score" with a grain of salt.. Basing anything on your income TODAY gives funky results... You could m...
by HomerJ
Mon Jun 30, 2014 8:38 pm
 
Forum: Personal Consumer Issues
Topic: The Millionaire Next Door: Are You One?
Replies: 187
Views: 22043

Re: Riding the yield curve, in action

ogd wrote:The one year total returns:
VFIUX (IT Treasury): 2.63%
VBTLX (Total Bond Market): 4.98%
VWIUX (IT munis, national): 7.5%


The above is impossible. One year ago, bonds had nowhere to go but down. Don't you read these boards? :)
by HomerJ
Mon Jun 30, 2014 8:34 pm
 
Forum: Investing - Theory, News & General
Topic: Riding the yield curve, in action
Replies: 40
Views: 3657

Re: The Millionaire Next Door: Are You One?

I actually read The Millionaire Next Door book a year ago. I recall it being rather repetitious and annoying. The author whines about pretenders who TRY to appear rich by purchasing upscale vodkas and BMWs, which they buy over time or lease, not with cash. Whereas the ACTUAL rich folk tend to under...
by HomerJ
Mon Jun 30, 2014 6:22 pm
 
Forum: Personal Consumer Issues
Topic: The Millionaire Next Door: Are You One?
Replies: 187
Views: 22043

Re: The Millionaire Next Door: Are You One?

Cheryl604 wrote:
Keim wrote:
Yes. Dr. Stanley has updated most of it in his book Stop Acting Rich. I think its from 2009. I'll save you the time of reading. Things haven't changed much.


Good to know. Do you recommend the book at all, or generally not worth the time?


Original book is better.
by HomerJ
Mon Jun 30, 2014 2:02 pm
 
Forum: Personal Consumer Issues
Topic: The Millionaire Next Door: Are You One?
Replies: 187
Views: 22043

Re: The Millionaire Next Door: Are You One?

The 70 year old only has the $120K if the assets are set-up to pay income, some folks continue to defer for future capital appreciation realizing as little as possible, a true investor if you will. Heh, well sure, they don't HAVE to spend it, but they can if they want. The guy making $100k with a m...
by HomerJ
Mon Jun 30, 2014 1:28 pm
 
Forum: Personal Consumer Issues
Topic: The Millionaire Next Door: Are You One?
Replies: 187
Views: 22043

Re: The Millionaire Next Door: Are You One?

I am known as the cheapest guy in the office. I eat at my desk when most of my co-workers go out (I go out with them once a week)... They call me the Peanut-Butter-Jelly guy in jest. Then I bought a lake condo and a boat last year. One guy (who is also interested in a lake condo) asked me how much ...
by HomerJ
Mon Jun 30, 2014 1:25 pm
 
Forum: Personal Consumer Issues
Topic: The Millionaire Next Door: Are You One?
Replies: 187
Views: 22043

Re: The Millionaire Next Door: Are You One?

It was a little better in the 90s when the book was published but yeah the people that are 70 and retired with 2 million dollars are in the same boat as people making 100k and working. Neither one should be buying 70k cars and 5k watches. A millionaire isn't what it used to be anymore, with house l...
by HomerJ
Mon Jun 30, 2014 1:17 pm
 
Forum: Personal Consumer Issues
Topic: The Millionaire Next Door: Are You One?
Replies: 187
Views: 22043

Re: The Millionaire Next Door: Are You One?

LBYM really has nothing to do with the car you drive. This isn't quite true... For some people, you can live below your means and drive any car you want... but for MOST people, buying a car is a huge purchase, and can definitely hurt your financial picture. Buying a house and a car are the two bigg...
by HomerJ
Mon Jun 30, 2014 1:00 pm
 
Forum: Personal Consumer Issues
Topic: The Millionaire Next Door: Are You One?
Replies: 187
Views: 22043

Re: Help for my sister

OP, be very careful. The whole strategy is based on the relationship surviving with the boyfriend. There is no guarantee of this and no alimony if it fails unless they get a legal agreement. Imagine 3 years out and they break up. I've seen it happen in marriages or longer term than her relationship...
by HomerJ
Sun Jun 29, 2014 6:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help for my sister
Replies: 21
Views: 1895

Re: Modeling the Worst Case for Stocks

I also believe the U.S. market will fall in line with the performance and behavior of markets in other countries in the near future. Or maybe other markets in other countries will increase in the future to match the U.S. historical record. Maybe the U.S. wasn't above-average in the last century, ma...
by HomerJ
Fri Jun 27, 2014 12:49 pm
 
Forum: Investing - Theory, News & General
Topic: Modeling the Worst Case for Stocks
Replies: 41
Views: 3045

Re: "Being Done" Saving: White Coat Investor blog post

My wife quit her job last year, because we are "mostly done" with savings. For the last 10 years, our salaries continued to grow, but we kept our expenses fairly constant. We went from making $120k together, but living a $80k lifestyle, to making $200k+ together, but living a $100k lifesty...
by HomerJ
Fri Jun 27, 2014 11:04 am
 
Forum: Investing - Theory, News & General
Topic: "Being Done" Saving: White Coat Investor blog post
Replies: 47
Views: 7508
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