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Owners Title Insurance - Optional

I'm working on financing to buy a 3-season cabin in Minnesota. The lender tells me that title insurance is not required for the loan. I've always had it on my home (different state and lender required it edit: I may well be confusing buyer's and lender's TI here regarding the requirement, been a lon...
by IlliniDave
Wed Sep 17, 2014 6:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: Owners Title Insurance - Optional
Replies: 1
Views: 122

Re: Experience w/financing for non-year round dwelling?

Okay, John, see what your saying. Thanks. Borrowing against my residence is an option to shed the unfavorable mortgage if I don't find another way around it. Calm man, you are correct, and my normal MO would be just to wait until I could buy in cash. But, one of my motives here is make this happen w...
by IlliniDave
Mon Sep 15, 2014 9:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: Experience w/financing for non-year round dwelling?
Replies: 7
Views: 228

Re: Experience w/financing for non-year round dwelling?

IlliniDave, I'd still run this by your CPA. Just my $.02. I probably would if I had one. What aspect of it do you feel requires a CPAs attention? The real rub in all this is apparently the fact that the place can't be lived in year round, and I'm faced with an interest rate about 2% higher than it ...
by IlliniDave
Mon Sep 15, 2014 8:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: Experience w/financing for non-year round dwelling?
Replies: 7
Views: 228

Re: Experience w/financing for non-year round dwelling?

We chose to pay-off our vacation (rental) property indebtedness with a re-fi on our principal residence. I assume the principles are the same. Even with a cash-out re-fi on our principal residence, the rate was ever so much lower than the existing rate on the vacation (rental) property. From a tax ...
by IlliniDave
Mon Sep 15, 2014 8:28 pm
 
Forum: Personal Finance (Not Investing)
Topic: Experience w/financing for non-year round dwelling?
Replies: 7
Views: 228

Experience w/financing for non-year round dwelling?

I trying to get a purchase agreement place to buy a 3-season (not suitable for winter habitation) cabin (well, septic, gas, electric, just not insulated well enough to protect water/septic lines from freezing) and have run into some reluctance by the sellers to sign the PA if I pursue financing from...
by IlliniDave
Mon Sep 15, 2014 8:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: Experience w/financing for non-year round dwelling?
Replies: 7
Views: 228

Re: I've never been a fan of commodity funds

IlliniDave Of course you need to consider the results but also WHY they occurred as they did. If you invest in small value stocks and they have period of underperformance was the strategy wrong? When you buy insurance and you don't collect because the risks did not show up was the strategy of buyin...
by IlliniDave
Sun Sep 14, 2014 5:18 pm
 
Forum: Investing - Theory, News & General
Topic: I've never been a fan of commodity funds
Replies: 28
Views: 2099

Re: Suggestions /Advice for a fresh college graduate

Suggest/advice some choices for DS, who does not have a clue what he will be doing next. My 22 yr old son is an under graduate senior with Political Science major and Non Profit minor at a decent State University. He seems very vague as to what he wants to do next and seems to be looking for a job ...
by IlliniDave
Fri Sep 12, 2014 9:22 am
 
Forum: Personal Finance (Not Investing)
Topic: Suggestions /Advice for a fresh college graduate
Replies: 29
Views: 1377

Re: I've never been a fan of commodity funds

... Never confuse strategy and outcome. Larry Not to pick on any one person, but seeing this quip tossed around here relatively frequently cracks me up. Yes, we all know that every now and again an arguably imprudent strategy will produce favorable results. In my line of work I often see the afterm...
by IlliniDave
Fri Sep 12, 2014 9:01 am
 
Forum: Investing - Theory, News & General
Topic: I've never been a fan of commodity funds
Replies: 28
Views: 2099

Re: Need help arrive at monthly expenses after retirement

I track my ongoing expenses pretty closely, and base future estimates on those. For my retirement income I'm shooting for my current expenses + $1000/mo. That's probably not very helpful, but I find it difficult to really nail down something with certainty so far in the future.
by IlliniDave
Mon Sep 08, 2014 3:57 pm
 
Forum: Personal Finance (Not Investing)
Topic: Need help arrive at monthly expenses after retirement
Replies: 25
Views: 1633

Re: Employer finding out you have a financial cushion?

Maybe I'm naive, but I like to think my employer looks at me in terms of what value I bring to the operation and makes decisions that essentially affect retention based on those, and that my bank account balance has relatively little to do with it. In other words, that my employer is motivated by se...
by IlliniDave
Sun Sep 07, 2014 4:45 pm
 
Forum: Personal Finance (Not Investing)
Topic: Employer finding out you have a financial cushion?
Replies: 62
Views: 6106

Re: POLL: Has a financial firm made a mistake with your mone

A number of years ago a check I wrote for $200 was keyed in as $2,000. This was around the time when the bank stopped mailing canceled checks, making images available online. I was easily able to get the image in question. When I called the bank (a large regional bank since acquired by a larger bank...
by IlliniDave
Sat Sep 06, 2014 10:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: POLL: Has a financial firm made a mistake with your money?
Replies: 52
Views: 2627

Re: Do you consider your emergency fund part of your portfol

I think the question can also be turned around. "Do you consider your portfolio a part of your emergency fund?" My answer would be "of course it is" regardless of how I classify it. Under certain conditions, and in extremely dire circumstances, it most definitely could be. We do...
by IlliniDave
Fri Sep 05, 2014 10:50 pm
 
Forum: Investing - Theory, News & General
Topic: Do you consider your emergency fund part of your portfolio?
Replies: 50
Views: 3038

Re: Poll: Cash Holdings

I don't consider it part of my portfolio, but today about 3.6% of my net worth is in cash--but that's unusual as I've got a large sinking fund for some ongoing home renovations and another sinking fund for part of a down payment on my retirement summer home. More typically it would be ~0.5%. My emer...
by IlliniDave
Fri Sep 05, 2014 10:38 pm
 
Forum: Investing - Theory, News & General
Topic: Poll: Cash Holdings
Replies: 65
Views: 3616

Re: Equities in tax-advantaged = bad?

No, investing in equities is a good thing. In some circumstances there are modest benefits to equities over taxable bonds in taxable accounts, but if the amount of bonds you want to own is less than your balance in tax-advantaged accounts, there's nothing bad about having the rest of your tax-advant...
by IlliniDave
Fri Sep 05, 2014 10:30 pm
 
Forum: Investing - Theory, News & General
Topic: Equities in tax-advantaged = bad?
Replies: 11
Views: 796

Re: Do you consider your emergency fund part of your portfol

I picked no. It is small enough in relation to the whole that it makes no material difference one way or the other, really. And the investments I hold it in are not what I would pick if it were part of what I consider my portfolio proper. I think in the end whatever makes a person feel better is the...
by IlliniDave
Fri Sep 05, 2014 10:20 pm
 
Forum: Investing - Theory, News & General
Topic: Do you consider your emergency fund part of your portfolio?
Replies: 50
Views: 3038

Re: Graduating Debt-Free, or with Elite College Degree?

One of the things I've seen first hand in the working world is that the correlation between career success and university academic reputation is not spectacularly high. That said, my line of work is not one where "connections" play a big role in success. With the disproportionate inflation...
by IlliniDave
Fri Sep 05, 2014 12:25 am
 
Forum: Personal Finance (Not Investing)
Topic: Graduating Debt-Free, or with Elite College Degree?
Replies: 92
Views: 4808

Re: How exactly would you define market timing?

The desire/attempt to participate in markets solely during the upswings and to be absent from the market during any downswings.
by IlliniDave
Thu Sep 04, 2014 2:19 pm
 
Forum: Investing - Theory, News & General
Topic: How exactly would you define market timing?
Replies: 67
Views: 1994

Re: Pay off Debt, by cashing in Retirement account?

I'd have to put myself in the camp of saying it's best to avoid raiding your 401k. You might consider temporarily lowering your 401 contributions to the match threshold (if your employer matches) to help jumpstart the student loan paydown if it is important to you.
by IlliniDave
Thu Sep 04, 2014 5:15 am
 
Forum: Personal Finance (Not Investing)
Topic: Pay off Debt, by cashing in Retirement account?
Replies: 25
Views: 2038

Re: Why is my 401k and taxable considered "One Portfolio"?

Theoretical question: Each account has different investment goals (retirement vs. 15yr wealth accumulation).... Shouldn't they thus have different AA's? Practical question: My 401k and taxable has equal balances ($200k each). If I truly follow Boglehead principles, and want 30% international exposu...
by IlliniDave
Thu Sep 04, 2014 5:08 am
 
Forum: Investing - Theory, News & General
Topic: Why is my 401k and taxable considered "One Portfolio"?
Replies: 37
Views: 2840

Re: Did you reveal to your kids...your savings and salary

I wasn't about to tell them while they were gradeschoolers. I probably would tell them approximately if they asked now that they're both over 21, but they don't ask.
by IlliniDave
Wed Sep 03, 2014 8:36 am
 
Forum: Personal Finance (Not Investing)
Topic: Did you reveal to your kids...your savings and salary
Replies: 75
Views: 6794

Re: Shorten Mortgage or 401K or something else

My philosophy for someone relatively early in life is to get an emergency fund in place, get ongoing retirement savings in place, get the consumer debt eliminated, then focus on early paydown of mortgage. Also, you don't need to refinance to shorten your mortgage, just pay the appropriate amount of ...
by IlliniDave
Tue Sep 02, 2014 5:24 am
 
Forum: Personal Finance (Not Investing)
Topic: Shorten Mortgage or 401K or something else
Replies: 15
Views: 1055

Re: 100% Stock Thread Collection

I was 100% stocks for almost 25 years, finally backing off in late 2007. I would do it again if I became 25 years younger. I won't ridicule those that choose otherwise. I don't know why people feel the need to deride the 100%-ers.
by IlliniDave
Mon Sep 01, 2014 2:56 pm
 
Forum: Investing - Theory, News & General
Topic: 100% Stock Thread Collection
Replies: 93
Views: 5303

Re: Poll: How many own zero/few stocks?

I have no shares of individual stocks except a few of my employer's stock that I've accumulated passively over the years (< 1% of my portfolio). I am about 70-80% in index funds. The rest are term/duration-based bond funds (e.g., intermediate-term tax-exempt), and a couple non-index Vanguard equity ...
by IlliniDave
Fri Aug 29, 2014 9:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: [Sell off individual stocks?] How many own zero/few stocks?
Replies: 68
Views: 2740

Re: Another Milestone

You can add that pension's present value into your net worth for fun & games, but I tend to agree with Leeraar that looking at your planned monthly INCOME in retirement starts to take precedence at this point (five years out)... This is sort of how I approach it, same with SS. Occasionally I'll...
by IlliniDave
Fri Aug 29, 2014 8:54 pm
 
Forum: Personal Finance (Not Investing)
Topic: Another Milestone
Replies: 9
Views: 1343

Re: A Low-Return Future? Are We Prepared?

I've always assumed a lower-than-historical future in my planning. And I have planned at sub-4% withdrawal targets. So I suppose I'm somewhat prepared. One thing I know is that life and the universe has infinite capacity to throw things at me I did not anticipate and/or could not fully guard against...
by IlliniDave
Fri Aug 29, 2014 8:05 am
 
Forum: Investing - Theory, News & General
Topic: A Low-Return Future? Are We Prepared?
Replies: 189
Views: 12124

Re: What's "The Herd" doing today?

Moving away from the herd is very bad if wolves are stalking it. Someone else said it, but the only big movement out there seems to be into index funds in general and Vanguard's in particular. Threads here about net cash flows into funds provide links. So following the herd isn't always a bad thing....
by IlliniDave
Wed Aug 27, 2014 1:08 pm
 
Forum: Investing - Theory, News & General
Topic: What's "The Herd" doing today?
Replies: 52
Views: 3505

Re: Mortgages and financial freedom

Good afternoon, all. I apologize for possibly revisiting some well-trodden ground. As background, I have a mortgage -- about $170k. My TIPI payment is about $1100. Don't itemize, so no tax benefit. I occasionally think about putting extra money towards the principal and weigh the various pros (quic...
by IlliniDave
Tue Aug 26, 2014 12:23 pm
 
Forum: Personal Finance (Not Investing)
Topic: Mortgages and financial freedom
Replies: 111
Views: 6826

Re: Telling my friends I paid off my house was a mistake.

Some of my friends are spenders. They love to go places, eat out all of the time, lease cars, redecorate their houses all of the time, etc. My biggest mistake came when a small group of us were talking about a friend's bonus. They asked me what should they do. I told them they could invest it or pa...
by IlliniDave
Tue Aug 26, 2014 4:15 am
 
Forum: Personal Finance (Not Investing)
Topic: Telling my friends I paid off my house was a mistake.
Replies: 73
Views: 10312

Re: What is your most memorable 1 week vacation?

For me it was portage canoe trips in the BWCAW/Quetico Provincial Park. They were typically 8-9 days, however. If things play out as I desire I'll spend my retirement summers very near there.
by IlliniDave
Mon Aug 25, 2014 5:21 am
 
Forum: Personal Consumer Issues
Topic: What is your most memorable 1 week vacation?
Replies: 91
Views: 7905

Re: convince me not to use traditional IRA for house downpay

The "finite" amount is often more than one can consistently afford. We often assume the saturated case in theory, whereas it is rare in real life (less rare among bogleheads, sure, but still uncommon). Many people have enough tax-advantaged space to be saving a third of their gross income...
by IlliniDave
Sat Aug 23, 2014 4:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: convince me not to use traditional IRA for house downpayment
Replies: 23
Views: 2410

Re: Do you take all of your allowed paid vacation time?

I have 200 hours of "paid time off". We are not allowed to accumulate unused PTO above 40 hours from one year to the next (company views it as a debt that does not improve their future revenue and therefore wants it off the books). When I go on vacation I go on vacation, and do not think a...
by IlliniDave
Sat Aug 23, 2014 3:54 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do you take all of your allowed paid vacation time?
Replies: 88
Views: 5700

Re: Slice n Dicers: How much have you outperformed?

I could if answer if I knew how the 3-fund in question was doing and over what time span you were referring to.
by IlliniDave
Sat Aug 23, 2014 3:33 pm
 
Forum: Investing - Theory, News & General
Topic: Slice n Dicers: How much have you outperformed?
Replies: 20
Views: 2487

Re: convince me not to use traditional IRA for house downpay

With IRA contributions capped annually, you've only got a finite amount you can get into one over a working lifetime and can't "replace" the withdrawn money at a future date. That would be the main reason I'd be reluctant to use tax-deferred assets for such a purchase at a relatively young...
by IlliniDave
Sat Aug 23, 2014 8:27 am
 
Forum: Personal Finance (Not Investing)
Topic: convince me not to use traditional IRA for house downpayment
Replies: 23
Views: 2410

Re: How To Budget Major Home Improvements

My strategy (future, not retired yet) is to determine, based on my current spending, what income I'll need to cover everything besides those large irregular items you mention. Then I will size my nest egg to support about $1K/month more than that amount at a 3% WR. I'll track that $1K/mo, although n...
by IlliniDave
Fri Aug 22, 2014 7:04 am
 
Forum: Personal Finance (Not Investing)
Topic: How To Budget Major Home Improvements
Replies: 4
Views: 809

Re: Good interview with John Bogle

In this case, we should all listen to Buffett and hold enough cash to be secure and put the rest in the Vanguard 500 Index. I actually did that for a few months and the short term results were pretty good except for the fact I turned into one of those people watching what the S&P did on a daily...
by IlliniDave
Fri Aug 22, 2014 6:41 am
 
Forum: Investing - Theory, News & General
Topic: Good interview with John Bogle
Replies: 34
Views: 3750

Re: Fed up with ATT

Just a follow-up. I went with magicJack and so far it has been flawless.
by IlliniDave
Thu Aug 21, 2014 11:50 am
 
Forum: Personal Consumer Issues
Topic: Fed up with ATT
Replies: 53
Views: 4886

Re: To be truly rich, take stock of your life before investi

I took the easy way and defined "wealthy" for myself as having more than enough. I also examined "enough" and explored in detail what my floor is there. So it was very easy for me to achieve wealthiness through investing. :happy I generally don't like to use the term "rich&q...
by IlliniDave
Thu Aug 21, 2014 5:56 am
 
Forum: Investing - Theory, News & General
Topic: To be truly rich, take stock of your life before investing
Replies: 30
Views: 4530

Re: Good interview with John Bogle

I hadn't seen it, so thanks for posting a link to it. He explicitly stated a couple of things that I've long inferred from his writing, and I was glad to get confirmation that I had understood correctly. Looks like a long, multi-part interview. I look forward to having a block of time to listen to t...
by IlliniDave
Thu Aug 21, 2014 5:43 am
 
Forum: Investing - Theory, News & General
Topic: Good interview with John Bogle
Replies: 34
Views: 3750

Re: When did you hear of Bill Miller and Legg Mason Value Tr

Never heard of him or it until I read about them in a book in 2012 (don't remember if it was one of Bogle's, or Bernstein's, or Malkiel).
by IlliniDave
Wed Aug 20, 2014 3:06 pm
 
Forum: Investing - Theory, News & General
Topic: When did you hear of Bill Miller and Legg Mason Value Trust?
Replies: 32
Views: 2345

Re: Defining "Stay the Course"

I am a pretty consistent Boglehead with a plan and am good at mainly sticking to it. But I just had a job-related life event that suddenly changed my risk profile. As a result, I moved my 4% allocation of High Yield bond fund to intermediate bonds. I know there has been a flow recently out of high ...
by IlliniDave
Wed Aug 20, 2014 9:19 am
 
Forum: Investing - Theory, News & General
Topic: Defining "Stay the Course"
Replies: 41
Views: 3711

Re: [live off dividends?] How the rich stay/get richer??

Your example is basically a 2% systematic withdrawal rate strategy which most people would regard as a very safe strategy with a high probability of real net worth growth over time. I don't entirely agree with the prior responder that this is another dividend versus total return proposition because ...
by IlliniDave
Wed Aug 20, 2014 5:34 am
 
Forum: Investing - Theory, News & General
Topic: [live off dividends?] How the rich stay/get richer??
Replies: 62
Views: 4984

Re: Defining "Stay the Course"

Stay the course does not mean lock the rudder, close your eyes, take a seat, and hope for the best. Corrections are often required to maintain a course.
by IlliniDave
Tue Aug 19, 2014 1:19 pm
 
Forum: Investing - Theory, News & General
Topic: Defining "Stay the Course"
Replies: 41
Views: 3711

Re: Is a big war coming ???

The first casualty of a "big war" would probably be the internet, so the price of silly cat videos would soar. So I say buy silly cat videos.
by IlliniDave
Tue Aug 19, 2014 1:13 pm
 
Forum: Investing - Theory, News & General
Topic: Is a big war coming ???
Replies: 37
Views: 3908

Re: Savings Percentage [rules of thumb]

I think the best rule of thumb is to save as much as you can tolerate while you are young. Percentages are tricky and there really isn't a one-size-fit-all. Unless your income is very low I'd shoot for something above 12-15% of gross if I wanted to be a substantial accumulator. Maybe twice that if I...
by IlliniDave
Mon Aug 18, 2014 7:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: Savings Percentage [rules of thumb]
Replies: 49
Views: 5495

Re: Your biggest "Missed Money" event that still kills you?

No one thing, but I do wish I'd been more knowledgeable and started investing with my first job in HS, through college, and more aggressively in my early professional years. Time is the key to it all.
by IlliniDave
Mon Aug 18, 2014 3:03 pm
 
Forum: Investing - Theory, News & General
Topic: Your biggest "Missed Money" event that still kills you?
Replies: 102
Views: 8082

Re: 'Risk Creep' - new term

Interesting term. "Scope creep" is a phrase used in my line of work and I can see where "risk creep" would have resonance with the mindset of certain investors. I'm probably too cavalier about risk. But, it's pretty clear that taking on risk is what an investor gets paid for. If...
by IlliniDave
Mon Aug 18, 2014 9:20 am
 
Forum: Investing - Theory, News & General
Topic: 'Risk Creep' - new term
Replies: 26
Views: 2336

Re: 'Risk Creep' - new term

Interesting term. "Scope creep" is a phrase used in my line of work and I can see where "risk creep" would have resonance with the mindset of certain investors. I'm probably too cavalier about risk. But, it's pretty clear that taking on risk is what an investor gets paid for. If ...
by IlliniDave
Sun Aug 17, 2014 7:48 am
 
Forum: Investing - Theory, News & General
Topic: 'Risk Creep' - new term
Replies: 26
Views: 2336

Re: Which is King: Income Stream or $ Invested

Interested in who thinks income stream trumps total dollars invested or vice versa? (In reality you can arrange both but curious which you think is King (or Queen :-) ) Some say total dollars gives you flexibility while some say any investment is subject to interest rates or the market(s) and there...
by IlliniDave
Wed Jul 30, 2014 5:33 am
 
Forum: Investing - Theory, News & General
Topic: Which is King: Income Stream or $ Invested
Replies: 52
Views: 4609

Re: Do Bogleheads Feel Wealthier?

Hard to answer because the "what" we're comparing to is not specified. Whether or not I "feel" wealthier, I am wealthier than I've ever been in my life. And, my spending is at it's lowest level. The simultaneity is not accidental. I'm not wired in such a way as to spend more beca...
by IlliniDave
Mon Jul 28, 2014 1:27 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do Bogleheads Feel Wealthier?
Replies: 57
Views: 4681

Re: In your opinion, who is in a riskier financial position?

Very incomplete picture. Both A and B are in somewhat risky positions. I would rather be in a position similar to person A, although I'd probably immediately downsize my housing and build up some financial assets.
by IlliniDave
Sun Jul 27, 2014 4:17 pm
 
Forum: Personal Finance (Not Investing)
Topic: In your opinion, who is in a riskier financial position?
Replies: 36
Views: 2951
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