Search found 1637 matches

by IlliniDave
Sun Aug 02, 2015 6:15 am
Forum: Personal Finance (Not Investing)
Topic: Priorities
Replies: 52
Views: 4096

Re: Priorities

Glad to hear you are doing well Protagonist, and thanks for sharing your post. It makes a difference. It's been a while since I posted, but when I read this I wanted to give a brief update. I was a very well paid mega corp (albeit) low level exec who felt like I needed to continue working in a high...
by IlliniDave
Sat Aug 01, 2015 6:06 pm
Forum: Investing - Theory, News & General
Topic: Which is more optimal in retirement? Total return vs. income investing
Replies: 23
Views: 1587

Re: Which is more optimal in retirement? Total return vs. income investing

Which is more optimal is really a function of the investor/retiree. Some people are just more comfortable with the concept of collecting their dividends and coupon payments to spend, and all the mathematical arguments in the world won't overcome that. Others are perfectly comfortable with the with t...
by IlliniDave
Sat Aug 01, 2015 4:17 pm
Forum: Personal Finance (Not Investing)
Topic: HELOC to buy cabin
Replies: 21
Views: 1450

Re: HELOC to buy cabin

If I took out a loan I'd take it on the cabin, just so if things get bad your house and the cabin aren't tied together (i.e., you can let the cabin foreclose without potentially losing your house which you seem to want to keep). HELOCs can generally be called in by the bank if your credit takes a h...
by IlliniDave
Sat Aug 01, 2015 4:00 pm
Forum: Personal Finance (Not Investing)
Topic: HELOC to buy cabin
Replies: 21
Views: 1450

Re: HELOC to buy cabin

If I took out a loan I'd take it on the cabin, just so if things get bad your house and the cabin aren't tied together (i.e., you can let the cabin foreclose without potentially losing your house which you seem to want to keep). HELOCs can generally be called in by the bank if your credit takes a h...
by IlliniDave
Sat Aug 01, 2015 3:50 pm
Forum: Personal Finance (Not Investing)
Topic: HELOC to buy cabin
Replies: 21
Views: 1450

Re: HELOC to buy cabin

If I took out a loan I'd take it on the cabin, just so if things get bad your house and the cabin aren't tied together (i.e., you can let the cabin foreclose without potentially losing your house which you seem to want to keep). HELOCs can generally be called in by the bank if your credit takes a hi...
by IlliniDave
Sat Aug 01, 2015 6:31 am
Forum: Investing - Theory, News & General
Topic: Factors or Fundamentals?
Replies: 38
Views: 1519

Re: Factors or Fundamentals?

To put it another way, if factor strategies are just "in exchange for higher risk," why are they better than getting your higher risk simply by increasing your stock allocation in a stock/bond portfolio? (And, if you are one of the people whose risk tolerance really is higher than the ris...
by IlliniDave
Sat Aug 01, 2015 5:57 am
Forum: Investing - Theory, News & General
Topic: Financial Advisor v. Bogle Approach?
Replies: 28
Views: 1776

Re: Financial Advisor v. Bogle Approach?

There are several clear things here: 1. It is as simple as Mr. Bogle states. ... This really says it all. A simple 3-fund approach managed in a hands-off manner with low-cost funds from a reputable provider will give you fair returns over the long run. It is unlikely that any advisor charging AUM p...
by IlliniDave
Sat Aug 01, 2015 5:26 am
Forum: Investing - Theory, News & General
Topic: Ready to Give Up on Emerging Market Stocks?
Replies: 36
Views: 3364

Re: Ready to Give Up on Emerging Market Stocks?

Still buying with a small fraction of my new money. I'm in it for the long haul and much remains to be seen over the next 10, 20, 30 years.
by IlliniDave
Fri Jul 31, 2015 12:14 pm
Forum: Personal Finance (Not Investing)
Topic: Which debt to work on next?
Replies: 28
Views: 2196

Re: Which debt to work on next?

It sounds like a part of you would be happier paying your debts off. People like to invoke the fungibility of money. I like to invoke the fungibility of happiness. Say you could play the low risk stretch-the-debt game and come out $5K ahead after 12.5 years versus paying everything off in say 7 year...
by IlliniDave
Fri Jul 31, 2015 10:15 am
Forum: Personal Finance (Not Investing)
Topic: Appraisal Higher than Accepted Offer Price
Replies: 21
Views: 1939

Re: Appraisal Higher than Accepted Offer Price

So, the taxable value is 1.2 million for this, so since the appraisal value is higher than the taxable, does that now become the taxable value of the house? Thanks! It makes it easier to convince a bank to lend you money, but otherwise I wouldn't make too much of it, unless the appraisal is below w...
by IlliniDave
Fri Jul 31, 2015 8:05 am
Forum: Personal Finance (Not Investing)
Topic: Appraisal Higher than Accepted Offer Price
Replies: 21
Views: 1939

Re: Appraisal Higher than Accepted Offer Price

It makes it easier to convince a bank to lend you money, but otherwise I wouldn't make too much of it, unless the appraisal is below what the tax assessment is based on. Then you could take it to the tax authority and try to get them to lower your assessment. Appraisals are nice, but the house is wo...
by IlliniDave
Fri Jul 31, 2015 6:23 am
Forum: Investing - Theory, News & General
Topic: Saving for College vs. Saving for Retirement: Why the Conventional Wisdom Is Wrong
Replies: 31
Views: 2850

Re: Saving for College vs. Saving for Retirement: Why the Conventional Wisdom Is Wrong

Well, I do agree that it's better for a parent to save for a kid's college than borrow for a kid's college. Otherwise, an overly simplistic argument predetermined by the writer's interest rate versus investment return assumptions. In the example the parents were easily able to afford college for one...
by IlliniDave
Fri Jul 31, 2015 5:42 am
Forum: Investing - Theory, News & General
Topic: Can I be a Boglehead and a UAW?? [Under Accumulator of Wealth]
Replies: 27
Views: 2469

Re: Can I be a Boglehead and a UAW??

After I read The Millionaire Next Door, I too was curious as to where I fell with the UAW/PAW rule. I like the rule becuase at the time it gave me a good measuring stick with regards to my income and my savings rate, and letting me know where I was at without having to compare myself against others...
by IlliniDave
Fri Jul 31, 2015 4:04 am
Forum: Investing - Theory, News & General
Topic: Can I be a Boglehead and a UAW?? [Under Accumulator of Wealth]
Replies: 27
Views: 2469

Re: Can I be a Boglehead and a UAW??

I'm an "average accumulator of wealth" by there criteria (between 0.5x and 2x that equation). I will never reach PAW status (2x the formula). I think for many people the formula is of limited applicability. A later starting career, starting in the hole, and fast growth/large jumps in incom...
by IlliniDave
Thu Jul 30, 2015 5:36 pm
Forum: Personal Finance (Not Investing)
Topic: Which debt to work on next?
Replies: 28
Views: 2196

Re: Which debt to work on next?

I would go with the school loans, smaller to larger, just to get them out of the way.
by IlliniDave
Thu Jul 30, 2015 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: Priorities
Replies: 52
Views: 4096

Re: Priorities

Glad to hear you made it through the heart attack okay. It's a balancing act in my view. I've been a good little soldier for a long time putting most of my effort into the things I'm expected to do (family, future, family's future). Similar to HomerJ above I leaned forward at age 50 and purchased my...
by IlliniDave
Thu Jul 30, 2015 2:39 pm
Forum: Personal Finance (Not Investing)
Topic: Hope for 4% swr
Replies: 3
Views: 797

Re: Hope for 4% swr

When it comes down to spending out of my assets in retirement I intend to wing it, as Mr. Larimore describes, using common sense and intuition. My portfolio will be much leaner which will make it somewhat more difficult than it would be for a more well-prepared person. There are probably "set i...
by IlliniDave
Thu Jul 30, 2015 12:13 pm
Forum: Investing - Theory, News & General
Topic: Waiting for the dip to add funds? Good luck!
Replies: 9
Views: 1525

Re: Waiting for the dip to add funds? Good luck!

I just buy on payday (or a day or two after in taxable). That means about 40% of the time I'm buying on a down day, which is like a mini-dip. 8-) The obvious flaw in trying to buy the real dips is that they are often spaced apart enough that even if you time it perfectly you'll still be paying more ...
by IlliniDave
Thu Jul 30, 2015 7:06 am
Forum: Personal Finance (Not Investing)
Topic: How Did You Leave Money for College in Your Will for Your Grandchildren?
Replies: 9
Views: 1021

Re: How Did You Leave Money for College in Your Will for Your Grandchildren?

I have not done anything of this sort yet myself. My grandmother had a similar wish for her grandchildren and great-grandchildren (though not tied specifically to college) and what she wound up doing was for the minors just leaving the money to the parent. It worked out okay because all the parents ...
by IlliniDave
Thu Jul 30, 2015 6:48 am
Forum: Personal Finance (Not Investing)
Topic: Retiring in a few days
Replies: 32
Views: 3656

Re: Retiring in a few days

... Exhausted, burnt out, emotionally done. It is time for me to go and enjoy this new phase. ... Congrats and best wishes!! :beer I too have been a good little soldier all my life but feel myself nearing the end. The way you stated it struck a chord. I'm looking at stepping away in 11 months at 52...
by IlliniDave
Wed Jul 29, 2015 9:09 pm
Forum: Personal Finance (Not Investing)
Topic: Who are you able to share good financial news with?
Replies: 80
Views: 4941

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

It depends on what the nature of the news is. I have a couple confidants, one a relative. In general I try to avoid mentioning any financial success with my family. Sadly, most of them are of a political bent where anyone with wealth is the enemy. Of course here with the Bogleheads I would share any...
by IlliniDave
Wed Jul 29, 2015 9:00 am
Forum: Investing - Theory, News & General
Topic: The Futility of Predicting Future Returns
Replies: 87
Views: 4040

Re: The Futility of Predicting Future Returns

Whether or not something is actionable can be in the eye of the beholder. If a weather forecast says rain is possible a person who already plans on staying indoors all day no matter what could state, "It's not actionable, forecasting today's weather is therefore futile." But for someone w...
by IlliniDave
Wed Jul 29, 2015 7:21 am
Forum: Personal Finance (Not Investing)
Topic: Strategies to reduce living costs for a single-person household?
Replies: 18
Views: 2150

Re: Strategies to reduce living costs for a single-person household?

Sounds like a smaller/cheaper apartment is the lowest fruit aside from simply putting up with having a roommate. Then direct approach is to list all the household expenses you have that you would share with a roommate if you had one. Then look at each one individually and determine if you could lowe...
by IlliniDave
Wed Jul 29, 2015 6:56 am
Forum: Investing - Theory, News & General
Topic: The Futility of Predicting Future Returns
Replies: 87
Views: 4040

Re: The Futility of Predicting Future Returns

Let me try one last time. Either I'm having an RBD... Nah, you're doing fine. I understand exactly what you are saying. Siamond observed earlier that this topic can begin to take on a vibe similar to religious belief. Essentially it all comes down to valuations and risk and some people just don't b...
by IlliniDave
Tue Jul 28, 2015 8:30 pm
Forum: Investing - Theory, News & General
Topic: Scott Burns – Don’t quit your day job.
Replies: 103
Views: 10426

Re: Scott Burns – Don’t quit your day job.

Context is important. You are 100% correct... Your case is indeed not as extreme I was making out since you plan to retire earlier than most and need your money to last many more years. So my apologies about the "ultra-conservative" comments... But you are in REALLY good shape if you have...
by IlliniDave
Tue Jul 28, 2015 3:44 pm
Forum: Investing - Theory, News & General
Topic: Scott Burns – Don’t quit your day job.
Replies: 103
Views: 10426

Re: Scott Burns – Don’t quit your day job.

This is sort of my take. I plan/test "nominally" with a relatively conservative number for returns (3.5% real over 30 years), targeting a relatively conservative withdrawal load (2.5% average). Just to be clear, 2.5% withdrawal is a super extreme conservative withdrawal rate, not "re...
by IlliniDave
Tue Jul 28, 2015 11:52 am
Forum: Personal Finance (Not Investing)
Topic: Just Got Financially Independent
Replies: 32
Views: 3022

Re: Just Got Financially Independent

Congrats! You should be proud! Sounds like you'll be in an extremely strong position once you do retire. I'm on the cusp myself. Last week I was just about at exactly 40X my average anticipated withdrawal needs, which is my threshold. Of course, after last week and yesterday I've certainly sunk belo...
by IlliniDave
Tue Jul 28, 2015 7:02 am
Forum: Personal Finance (Not Investing)
Topic: Divorce [financial implications]
Replies: 72
Views: 6772

Re: Divorce

Unfortunately, I have. Financially, make sure everything is completely separated (no spouse A gets the house but spouse B is responsible for paying the mortgage or the like). It's almost certain you will take a hit financially, expect it and expect some amount of struggle to dig out of it. The older...
by IlliniDave
Tue Jul 28, 2015 6:35 am
Forum: Investing - Theory, News & General
Topic: I know I'm not the only one... [dividend paying stock funds]
Replies: 24
Views: 2722

Re: I know I'm not the only one... [dividend paying stock funds]

A question regarding dividend paying stock funds. I hear that one's wealth is not increased by owning stocks/reinvesting dividends from dividend producing funds. EG, a $20 NAV pays $1 dividend hence more shares @$19.....but the total dollar wealth remains exacting the same. So I don't understand wh...
by IlliniDave
Tue Jul 28, 2015 6:05 am
Forum: Investing - Theory, News & General
Topic: Scott Burns – Don’t quit your day job.
Replies: 103
Views: 10426

Re: Scott Burns – Don’t quit your day job.

BUT if I use Housel's 6% 'good enough' real return on equities, I'd be laughing all the way to the bank, and if I use firecalc's 7% real on my portfolio my only worries will involve estate planning. In comparison, the numbers are as follows: Base case net worth at 85 and 100 - $1,350,000 and $300,0...
by IlliniDave
Mon Jul 27, 2015 4:02 pm
Forum: Investing - Theory, News & General
Topic: The Futility of Predicting Future Returns
Replies: 87
Views: 4040

Re: The Futility of Predicting Future Returns

So how do we know when to retire or what our assets will support if gauging the magnitude of future returns is futile? One has to make some assumptions about the future in order to plan for the future. You can easily determine that a TIPS ladder will let you retire for 30 years with a little less t...
by IlliniDave
Mon Jul 27, 2015 3:02 pm
Forum: Investing - Theory, News & General
Topic: The Futility of Predicting Future Returns
Replies: 87
Views: 4040

Re: The Futility of Predicting Future Returns

So how do we know when to retire or what our assets will support if gauging the magnitude of future returns is futile? One has to make some assumptions about the future in order to plan for the future.
by IlliniDave
Mon Jul 27, 2015 7:28 am
Forum: Investing - Theory, News & General
Topic: Fear Not the Inevitable Stock Market Correction
Replies: 19
Views: 3541

Re: Fear Not the Inevitable Stock Market Correction

Interesting stuff. Intuitively I knew some of that, but seeing it pictorially shows it's more routine than I had believed.
by IlliniDave
Mon Jul 27, 2015 3:58 am
Forum: Personal Finance (Not Investing)
Topic: What are your financial goals?
Replies: 41
Views: 4072

Re: What are your financial goals?

Because of where I am in life mine may not be especially applicable. I'm in the home stretch at age 51, and at this stage really only have short-term goals. I have essentially 2 of those. 1. Continue to hone in on discovering the optimal spending level, the blend of thriftiness and contentment that ...
by IlliniDave
Sun Jul 26, 2015 7:54 am
Forum: Investing - Theory, News & General
Topic: Scott Burns – Don’t quit your day job.
Replies: 103
Views: 10426

Re: Scott Burns – Don’t quit your day job.

I still pass the "tool" test the article refers to. But I've long since abandoned any notion of expecting historic investment returns or using a 4-5% SWR. My best investment is appears increasingly to be learning how to simultaneously enjoy living and increase thrift/simplicity. Seems like...
by IlliniDave
Sun Jul 26, 2015 7:14 am
Forum: Investing - Theory, News & General
Topic: 50/50 asset allocation
Replies: 69
Views: 5760

Re: 50/50 asset allocation

If I ever decide to retreat into a single fund it would probably be Wellington, which I think is about 65/35. I think there's minimal difference between 50/50 and 60/40, and both are probably pretty good 'default' arrangements. But a lot would depend on how large your pool of assets are relative to ...
by IlliniDave
Sat Jul 25, 2015 11:29 am
Forum: Investing - Theory, News & General
Topic: "Total" Stock No More So than "Total" Bond
Replies: 52
Views: 3811

Re: "Total" Stock No More So than "Total" Bond

The nomenclature of the fund or the folks that create the indexes the funds track don't bother me even though the most strictly literal diction may be at odds with what the funds contain. I'm confident that any stock segment that a mutual fund could efficiently hold is included in an index/fund some...
by IlliniDave
Sat Jul 25, 2015 8:43 am
Forum: Investing - Theory, News & General
Topic: Merton - DC Pension Plans Need to Simplify
Replies: 5
Views: 749

Re: Merton - DC Pension Plans Need to Simplify

My company's 401k, managed by fidelity, also attempts to give participants some indication of progress and has tools to help establish goals. The problem with them is that the problem they address is a complicated one, and it's difficult to match everyone's specific situation. I know the tools avail...
by IlliniDave
Fri Jul 24, 2015 3:36 am
Forum: Investing - Theory, News & General
Topic: Vgpmx down 40%, time to buy?
Replies: 36
Views: 6795

Re: Vgpmx down 40%, time to buy?

My little backdoor Roth is my play space and I have a small position in VGPMX I bought last year. So far I'm down 20%-ish. I bought it because it's fairly uncorrelated with most things I compared it too. What that's meant since I bought it is that it has gone down while everything else has gone up. ...
by IlliniDave
Thu Jul 23, 2015 10:00 am
Forum: Investing - Theory, News & General
Topic: Hard assets are having some very hard times
Replies: 16
Views: 1872

Re: Hard assets are having some very hard times

The closest thing I have is a small dollop of Vanguard's Precious Metals and Mining fund, which obviously isn't a commodity derivative at all, just an equity fund. I don't think I'll ever invest in commodities. That PM&M fund hasn't done so well, but also not bad enough in the time I've held it ...
by IlliniDave
Thu Jul 23, 2015 5:55 am
Forum: Investing - Theory, News & General
Topic: Does how often you check your portfolio correlate with returns
Replies: 35
Views: 2663

Re: Does how often you check your portfolio correlate with returns

I guess I don't get it. Or missed it. I didn't see anything in the article about correlation of viewing frequency and returns, or vice-versa. Most of it was on page 2. I hope you clicked it at the bottom and read the whole article. ... I did. It seemed to just say that frequent checkers had more ne...
by IlliniDave
Thu Jul 23, 2015 4:01 am
Forum: Personal Finance (Not Investing)
Topic: Family budget advice
Replies: 14
Views: 1841

Re: Family budget advice

There's all kinds of things you could do, it just depends on how badly you want to free up additional money. Things like car payments, eating out, cable, netflix, booze, etc., are not mandatory (though you're stuck with the car loans for now). It seems like it might be possible to scale back other i...
by IlliniDave
Wed Jul 22, 2015 12:35 pm
Forum: Investing - Theory, News & General
Topic: Does how often you check your portfolio correlate with returns
Replies: 35
Views: 2663

Re: Does how often you check your portfolio correlate with returns

I guess I don't get it. Or missed it. I didn't see anything in the article about correlation of viewing frequency and returns, or vice-versa. I do get that daily monitoring could leave someone with a negative impression of how things are going. I hear how the market does almost every day on my commu...
by IlliniDave
Wed Jul 22, 2015 12:14 pm
Forum: Personal Finance (Not Investing)
Topic: Should I consider Social Security Benefits as Assets
Replies: 44
Views: 2789

Re: Should I consider Social Security Benefits as Assets

I don't figure it is an asset for net worth purposes. I do consider it as an asset for retirement planning in the sense it offsets a certain amount of living expenses, ultimately reducing the minimum required asset target I work to. Since that is exceeded already, long story short, it allows me to i...
by IlliniDave
Wed Jul 22, 2015 6:52 am
Forum: Investing - Theory, News & General
Topic: What 2008/09 has done to me
Replies: 158
Views: 18800

Re: What 2008/09 has done to me

IlinDave, Your comment is an interesting one - Too much profit and earnings was as bad as too little. Very surreal. In the end it all traced back to what investors wanted, which was predictable short-term increase in share price. I've not heard of investors demanding a lesser amount of profit or ea...
by IlliniDave
Tue Jul 21, 2015 1:22 pm
Forum: Investing - Theory, News & General
Topic: How do you pick TLH partners?
Replies: 6
Views: 482

Re: How do you pick TLH partners?

jhfenton wrote:It's "substantially identical,"


Thanks, it was still pretty early when I (mis)typed that.
by IlliniDave
Tue Jul 21, 2015 11:22 am
Forum: Investing - Theory, News & General
Topic: How do you pick TLH partners?
Replies: 6
Views: 482

Re: How do you pick TLH partners?

Typically I just park the money in cash and eat the 60 days (at Vanguard). It's cleanest that way, as I don't think "substantially equal" has ever been specifically defined by the IRS. I should note that my TLH usually is not a lot of money relative to the whole, so missing 30 or even 60 d...
by IlliniDave
Tue Jul 21, 2015 4:06 am
Forum: Investing - Theory, News & General
Topic: What 2008/09 has done to me
Replies: 158
Views: 18800

Re: What 2008/09 has done to me

Like was mentioned above, so many of the corporate changes I've seen basically trace back to the financial engineering required to satisfy "the street". My own mega corp nearly went belly-up trying to "compete" with the dot coms in the late 90s--not in the realm of the internet a...
by IlliniDave
Sun Jul 19, 2015 5:05 pm
Forum: Investing - Theory, News & General
Topic: When did you start investing in the Market?
Replies: 60
Views: 3318

Re: When did you start investing in the Market?

In 1988 or 89, a year or so after I started working, in my company's 401k. Truth be told at the time I didn't even know what a mutual fund was or that I was actually investing in the stock market.
by IlliniDave
Sun Jul 19, 2015 6:27 am
Forum: Investing - Theory, News & General
Topic: "Helping Your Parents Financially"
Replies: 62
Views: 7777

Re: "Helping Your Parents Financially"

On balance a decent and thought-provoking article. I am one of those people who do feel obligated to care for my parents in whatever way they need it. Maybe because I'm a little older myself. As a matter of fact, one of my bigger motivations to grind my way to an early retirement is to return "...

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