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Re: How to (diplomatically) challenge wife's active mgmt fun

Aaronb Your question goes perhaps much deeper than you indicate It sounds like you are managing your joint assets in separate realms. Her resistance may have more to do with maintaining independence and doing something different for its own sake, rather than for a committed belief that her approach...
by IlliniDave
Thu Apr 16, 2015 6:21 am
 
Forum: Investing - Theory, News & General
Topic: How to (diplomatically) challenge wife's active mgmt funds
Replies: 87
Views: 4611

Re: Just looking for advice

Yes, I would recommend your first option (paying off the loan) then proceed to start building up your tax-deferred/tax exempt savings. You should look into Roth IRAs. Your marginal rate is still pretty low (15%) so it might be worth paying that now and paying no tax in the future when there's a fair...
by IlliniDave
Wed Apr 15, 2015 7:02 am
 
Forum: Investing - Help with Personal Investments
Topic: Just looking for advice - [Payoff loan, 401(k) choices]
Replies: 31
Views: 1091

Re: Finally some good news on retirement

This is silly. Nobody should plan a retirement budget on income, past, present, or future. You start with a budget which should be divided into discretionary and bottom-line expenses. From that you determine income requirements. It is totally backwards to start from income and from that determine a...
by IlliniDave
Wed Apr 15, 2015 6:33 am
 
Forum: Investing - Theory, News & General
Topic: WSJ: You may need less than 80% in retirement
Replies: 98
Views: 8892

Re: How do you valuate a pension?

How do you valuate the "net worth" of a pension? If the formula is 1% of the average of the last 5 years of salary, for every year of service, how do I evaluate the current "net worth" of the pension? If for example the last 5 years salary is $100k, and I have 10 years at the co...
by IlliniDave
Tue Apr 14, 2015 7:31 pm
 
Forum: Personal Finance (Not Investing)
Topic: How do you value a pension?
Replies: 18
Views: 1570

Re: Does your family know about your net worth (ball park)?

Q1 No Q2 Not really, but could make some educated guesses, more so with parents than siblings Q3 Overall, don't know The only person in my family with whom I have mutual financial insight with is one of my aunts. She and I are really the only ones in the family who do any sort of saving and investin...
by IlliniDave
Tue Apr 14, 2015 10:57 am
 
Forum: Personal Finance (Not Investing)
Topic: Does your family know about your net worth (ball park)?
Replies: 92
Views: 9402

Re: Live in house free or buy it?

Well, it isn't really free, just relatively cheaply. Aside from taxes, I'm assuming "all bills" would include insurance and repairs, which is a rent payment of sorts--so it's really free for the owner to own it rather than free for the relative to live there. Based on the poll subject ques...
by IlliniDave
Mon Apr 13, 2015 2:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: Live in house free or buy it?
Replies: 12
Views: 1237

Re: Poll: do you own individual international stocks?

I answered number 1 (no individual stocks) because it most closely matches my situation in terms of motivation/intent. I do own about 6 shares of my employer's stock that I acquired passively many years ago. I keep them not as an investment but as a novelty/curiosity, and because I like to "vot...
by IlliniDave
Mon Apr 13, 2015 6:09 am
 
Forum: Investing - Theory, News & General
Topic: Poll: do you own individual international stocks?
Replies: 25
Views: 1719

Re: Jane Bryant Quinn: Prepay your mortgage

It's one of those things everyone has to decide for themselves. For me the main thing as I close in on retirement is simplification and removing sources of financial stress/worry. I have heard arguments about having too much home equity theoretically being a problem. But in a more practical sense, I...
by IlliniDave
Sat Apr 11, 2015 6:09 pm
 
Forum: Investing - Theory, News & General
Topic: Jane Bryant Quinn: Prepay your mortgage
Replies: 31
Views: 3662

Re: Inflation Protection [(Morningstar article)]

I've never had a clear vision on what to do about inflation. I'm relatively late in my accumulation phase, am planning to retire early so hopefully looking at a longer than average distribution phase. So I'm heavy into equities. Guess for now I'll dance with the one who brung me.
by IlliniDave
Sat Apr 11, 2015 5:52 pm
 
Forum: Investing - Theory, News & General
Topic: Inflation Protection [(Morningstar article)]
Replies: 7
Views: 1174

Re: AA beyond achievement of your "number"

I use my own take/wrinkle on a liability matching strategy. The portion that I expect to use myself I invest using an AA I am comfortable with for that purpose. In my case any excess will go to my kids when I die, so for that portion I select an AA that I feel is suitable for that goal. People with ...
by IlliniDave
Sat Apr 11, 2015 8:54 am
 
Forum: Investing - Theory, News & General
Topic: AA beyond achievement of your "number"
Replies: 22
Views: 2209

Re: Two Comma Club

Loaded up my Fund Manager program to check on my accounts and wait, what's this? Two commas in the total balance? Apparently so. I knew I was close, and getting my tax refund and annual bonus finally pushed me over the edge. As others have said in the past, it's one of those things you feel good ab...
by IlliniDave
Fri Apr 10, 2015 7:26 am
 
Forum: Investing - Help with Personal Investments
Topic: Two Comma Club
Replies: 66
Views: 8478

Re: Hypothetical End Game Scenario w/ 5M retirement account

You saved up all this money, yet your lifestyle isn't going to change too much. Am I missing something important here?? /rant off Edit: okay, I responded to the initial post and missed the later coming clean. If you're really worried about losing control maybe put a chunk into some sort of irrevoca...
by IlliniDave
Fri Apr 10, 2015 4:10 am
 
Forum: Investing - Theory, News & General
Topic: Hypothetical End Game Scenario w/ 5M retirement account
Replies: 74
Views: 7199

Re: Bogle possible mistake? Discussion [on age-based portfol

Meh, I dunno. Bogle generally bases his take on the notion that as one ages their bond holdings should increase and their stock holdings should decrease. His classic "age in bonds" starting point is an incremental transition from a relatively high volatility portfolio to a relatively low v...
by IlliniDave
Thu Apr 09, 2015 8:58 pm
 
Forum: Investing - Theory, News & General
Topic: Bogle possible mistake? Discussion [on age-based portfolios]
Replies: 53
Views: 4949

Re: The $1 Million Goal: Source of Motivation or Discouragem

I'd focus more on multiples of income or expenses. When you have retirement savings equal to ten times your salary, you're doing OK... I agree with the first part, although for a young person just starting out it might be difficult to estimate meaningfully. My first reaction to the second part was ...
by IlliniDave
Wed Apr 08, 2015 5:16 pm
 
Forum: Investing - Theory, News & General
Topic: The $1 Million Goal: Source of Motivation or Discouragement?
Replies: 172
Views: 15685

Re: First ever change of AA constitutes 'frequent trading'??

I'm sure I'm not the first to run into this issue but I find it particularly frustrating. About 2 weeks ago I changed my AA of my Vanguard Roth IRA from 100% equities to 70/30 by exchanging 30% of my VTSAX for VBTLX. Then this morning I went to make a new contribution hoping to contribute 70% to VT...
by IlliniDave
Wed Apr 08, 2015 9:03 am
 
Forum: Investing - Theory, News & General
Topic: First ever change of AA constitutes 'frequent trading'???
Replies: 13
Views: 1149

Re: Do you think Ric Edelman is correct, never pay down mort

You are choosing debt avoidance over liquidity. Typically not. It's not an either/or thing. A person can minimize the amount of debt they incur, and pay off any debt they do, even ahead of schedule, while saving/investing for retirement and maintaining something akin to an emergency fund in non-ret...
by IlliniDave
Mon Apr 06, 2015 11:22 am
 
Forum: Investing - Theory, News & General
Topic: Do you think Ric Edelman is correct, never pay down mortgage
Replies: 209
Views: 16201

Re: Do you think Ric Edelman is correct, never pay down mort

during the radio show Ric Edelman said people should always get a 30-year mortgage and never pay down the mortgage. He did not say the reason, but said if you want to know get his book or attend his seminar. I guess he believes using the money for paying down mortgage to invest in stock market will...
by IlliniDave
Sun Apr 05, 2015 7:41 pm
 
Forum: Investing - Theory, News & General
Topic: Do you think Ric Edelman is correct, never pay down mortgage
Replies: 209
Views: 16201

Re: The Detriments of Rebalancing

The way I see it, which has already been said, is that rebalancing is primarily about managing the variance/volatility of a portfolio. Most of the time I'm a passive, hesitant rebalancer, and just make new purchases in whichever asset class is falling behind. You can construct situations where getti...
by IlliniDave
Sat Apr 04, 2015 10:00 am
 
Forum: Investing - Theory, News & General
Topic: The Detriments of Rebalancing
Replies: 67
Views: 5754

Re: Have P/E Ratios Affected Your Asset Allocation?

I have in that almost all of my new money is being directed away from US equities. If things get up to 30 it might be time for me to reevaluate.
by IlliniDave
Fri Apr 03, 2015 7:36 pm
 
Forum: Investing - Theory, News & General
Topic: Have P/E Ratios Affected Your Asset Allocation?
Replies: 52
Views: 2657

Re: Article on "New Patterns" of Boomer Retirement Spending

I have no idea what to make of that article/finding. I don't plan on being a systematic withdraw-er myself, until RMDs force me into it, but I don't see myself as being either 0% or some large percentage. If I has to guess, pre-RMDs I'll probably meander in the 0.5%-3% range. I wonder what peeling a...
by IlliniDave
Wed Apr 01, 2015 3:47 am
 
Forum: Investing - Theory, News & General
Topic: Article on "New Patterns" of Boomer Retirement Spending
Replies: 9
Views: 1636

Re: Does excess $ matter if Retirement (15yrs from now) is s

I appear to have more money in my 401k than I expect to need. But I don't know that for sure. So I keep shoveling more in. As you've learned, life has a way of throwing curve balls at a guy. I suppose what it boils down to is that it's much easier to blow money tomorrow that I saved today than it i...
by IlliniDave
Tue Mar 31, 2015 1:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: Does excess $ matter if Retirement (15yrs from now) is set?
Replies: 30
Views: 3448

Re: Does excess $ matter if Retirement (15yrs from now) is s

It depends on how precisely you can define what is "excess". I'm 5 years out, and for example I appear to have more money in my 401k than I expect to need. But I don't know that for sure. So I keep shoveling more in. As you've learned, life has a way of throwing curve balls at a guy. I sup...
by IlliniDave
Tue Mar 31, 2015 3:35 am
 
Forum: Personal Finance (Not Investing)
Topic: Does excess $ matter if Retirement (15yrs from now) is set?
Replies: 30
Views: 3448

Re: Did you learn anything from 2008?

That was a strange time for me investment-wise because of some things happening in my personal life. But from that time, and from 2000-2002, I learned that: -things happen when you don't expect them to -when people are fleeing at the highest rate, it's best to either sit tight or wade in a little mo...
by IlliniDave
Mon Mar 30, 2015 3:17 pm
 
Forum: Investing - Theory, News & General
Topic: Did you learn anything from 2008?
Replies: 105
Views: 8407

Re: My Strategy For A Market Crash

That seems like a pretty reasonable plan.Like livesoft, I would probably go beyond reinvesting to full-up rebalancing if things dropped that deep, although that's often tricky on the taxable side. In a tactical sense I won't check the reinvest box though. (I'm speaking to what I'd do myself in the s...
by IlliniDave
Mon Mar 30, 2015 11:35 am
 
Forum: Investing - Theory, News & General
Topic: My Strategy For A Market Crash
Replies: 54
Views: 9146

Re: The random stock portfolio bogey - beating the monkey

So then, back to the question asked in my original post: why should we be using cap-weighted index returns as a benchmark? ... The reason is simple ... the market itself (i.e., the total market) is cap weighted essentially by definition, as it is the sum total of all the shares out there. That exte...
by IlliniDave
Mon Mar 30, 2015 7:10 am
 
Forum: Investing - Theory, News & General
Topic: The random stock portfolio bogey - beating the monkey
Replies: 150
Views: 8712

Re: Recruiters asking for current compensation

Primarily the recruiters are looking to avoid the situation where you are offered less than you make now, which rarely leads to offers being accepted. As an alternative consider providing a reasonable range of salaries that you would "consider" instead, making it clear that is what you are...
by IlliniDave
Sun Mar 29, 2015 12:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: Recruiters asking for current compensation
Replies: 54
Views: 4853

Re: Turbo Tax Estimated Tax Coupons in *.pdf

Thanks, everyone. I finally got a call back from the "expert", just took a little longer than the 10 mins they advertise. He said pretty much the same thing everyone here did. I had some larger than normal (for me) capital gains, and my overall income and therefore total withholding went d...
by IlliniDave
Sun Mar 29, 2015 12:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: Turbo Tax Estimated Tax Coupons in *.pdf
Replies: 5
Views: 348

Turbo Tax Estimated Tax Coupons in *.pdf

So I just finished my 2014 return. I saved off a *.pdf of my return, which I do every year and take a day or two to look everything over and make sure things look correct prior to filing. This year they included at the front of the *.pdf four coupons for estimated tax payments for 2015 with a dollar...
by IlliniDave
Sun Mar 29, 2015 11:14 am
 
Forum: Personal Finance (Not Investing)
Topic: Turbo Tax Estimated Tax Coupons in *.pdf
Replies: 5
Views: 348

Re: Zen Boglehead's

Here's some Jewish Zen for you: Breathe in. Breathe out. Breathe in. Breathe out. Forget this and achieving enlightenment will be the least of your problems. Actually, this is spot on. Much of Zen practice is cooking, cleaning and maintaining the grounds. Whatever you are doing, your mind shouldn't...
by IlliniDave
Sun Mar 29, 2015 7:19 am
 
Forum: Investing - Theory, News & General
Topic: Zen Boglehead's
Replies: 19
Views: 2450

Re: 401k Record Keeping Fee

At my employer we pay about $28/year for record keeping and similar administrative fees. It varies year-to-year and it is assessed quarterly based on actual incurred expenses and divided equally between participants. What I don't know is whether my employer is picking up part of the tab for that, o...
by IlliniDave
Sun Mar 29, 2015 6:55 am
 
Forum: Personal Finance (Not Investing)
Topic: 401k Record Keeping Fee
Replies: 71
Views: 5129

Re: 'Randomly Selected Stocks fund' vs Market cap Index...

Lets say I was a bit on the wealthy side, and I owned every share of stock for every company that traded in the market. By definition, my portfolio would then be cap weighted. The market itself is cap weighted. It is not a democratic list of companies where everyone's vote is equal. If someone were ...
by IlliniDave
Sun Mar 29, 2015 5:57 am
 
Forum: Investing - Theory, News & General
Topic: 'Randomly Selected Stocks fund' vs Market cap Index...
Replies: 5
Views: 693

Re: Dave Ramsey's voice is in my head...

Edit: Sorry, missed that this was an update to an older question. Congrats! Feels great, doesn't it?
by IlliniDave
Sat Mar 28, 2015 12:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: Dave Ramsey's voice is in my head...
Replies: 85
Views: 9788

Re: 401k Record Keeping Fee

At my employer we pay about $28/year for record keeping and similar administrative fees. It varies year-to-year and it is assessed quarterly based on actual incurred expenses and divided equally between participants. What I don't know is whether my employer is picking up part of the tab for that, or...
by IlliniDave
Sat Mar 28, 2015 10:12 am
 
Forum: Personal Finance (Not Investing)
Topic: 401k Record Keeping Fee
Replies: 71
Views: 5129

Re: Recurring utility bills - How do you pay?

For the majority of my monthly bills I use auto pay with a CC. The one exception is my utilities proper (water, sewer, elec, trash, all billed together) because they add a 2.4% surcharge for paying by credit card. So that one I have set up for an automatic funds transfer from my checking account.
by IlliniDave
Sat Mar 28, 2015 5:46 am
 
Forum: Personal Finance (Not Investing)
Topic: Recurring utility bills - How do you pay?
Replies: 43
Views: 3064

Re: Rick Ferri's 30 year market forecast 2015

I'd be quite happy if those forecasts turn out to be on the mark.
by IlliniDave
Fri Mar 27, 2015 3:09 pm
 
Forum: Investing - Theory, News & General
Topic: Rick Ferri's 30 year market forecast 2015
Replies: 137
Views: 13575

Re: Zen Boglehead's

Sitting here, doing nothing
Spring comes--
The grass grows by itself

That might be Basho, can't remember.
by IlliniDave
Fri Mar 27, 2015 2:13 pm
 
Forum: Investing - Theory, News & General
Topic: Zen Boglehead's
Replies: 19
Views: 2450

Re: The random stock portfolio bogey - beating the monkey

Research has demonstrated that randomly selected equally dollar-weighted stock portfolios produce slightly higher returns over time than the aggregate returns produced by mutual funds; this is the case even accounting for the expenses of both. In other words, if you have your monkey simply randomly...
by IlliniDave
Fri Mar 27, 2015 12:32 pm
 
Forum: Investing - Theory, News & General
Topic: The random stock portfolio bogey - beating the monkey
Replies: 150
Views: 8712

Re: Mortgage Debt in Retirement?

I paid off my mortgage, will buy a retirement home with a fraction of the net of my present home's eventual sale, and I'll have plenty of invested assets growing for me. Maybe a person in somewhat desperate straits regarding financial viability through retirement would need to make a leveraged gambl...
by IlliniDave
Fri Mar 27, 2015 10:29 am
 
Forum: Personal Finance (Not Investing)
Topic: Mortgage Debt in Retirement?
Replies: 74
Views: 5161

Re: Mom seeking financial help - what to do?

My thoughts are that you should give (not "loan") your mom the money while trying to impose the condition she would take the option to live with her dad for free, and let your brother, the dog, and the girlfriend fend for themselves. Or at minimum boot the freeloaders/make them 2/3 the hou...
by IlliniDave
Fri Mar 27, 2015 7:42 am
 
Forum: Personal Finance (Not Investing)
Topic: Mom seeking financial help - what to do?
Replies: 62
Views: 4556

Re: Can I afford a $1M house?

I'm a 2-2.5X guy, 25% of gross on a 15-year 80/20. I'd never be able to sleep with a mortgage 4X my base income. To me that sounds like the definition of house poor waiting to happen. But it seems like the numbers could work if the universe decides to flash its benign side towards you.
by IlliniDave
Fri Mar 27, 2015 6:55 am
 
Forum: Personal Finance (Not Investing)
Topic: Can I afford a $1M house?
Replies: 74
Views: 7940

Re: how much mortgage would you be comfortable with?

There's a lot of considerations regarding stability of income and the like that I won't get into. Seems unlikely to be an issue for you as long as nobody pauses their career when the kids come. My own rule-of-thumb is a minimum of 20% down and the monthly payment on a 15-year, fixed mortgage after t...
by IlliniDave
Thu Mar 26, 2015 12:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: how much mortgage would you be comfortable with?
Replies: 43
Views: 4400

Re: Contribute to Traditional IRA?

Wow, I had no idea it's that low.... Yes, it doesn't take long for a single filer to phase out of a lot of tax advantages and leap into the 25% and up brackets. I believe if you convert a "deductible" IRA to Roth you would then have to pay taxes on the entire conversion, so I don't see an...
by IlliniDave
Thu Mar 26, 2015 11:47 am
 
Forum: Personal Finance (Not Investing)
Topic: Contribute to Traditional IRA?
Replies: 7
Views: 295

Re: Wise move to move some $ to cash before bear market?

I just read an article that described how to prepare for a bear market and listed the history of the previous bear markets over time. Since we are at an all time high , a bear market is coming , nobody knows when. The author suggested taking 20%- 30 % and putting it in cash to hold and buy in the b...
by IlliniDave
Thu Mar 26, 2015 11:33 am
 
Forum: Investing - Theory, News & General
Topic: Wise move to move some $ to cash before bear market?
Replies: 116
Views: 11705

Re: I've Got to be Doing "Something". And You?

One thing that saved me from true disaster in my pre-boglehead days is that I tend to fall victim to analysis paralysis. So while I seem to always be considering actions I might take, I actually get around to taking very few of them. Lately, a time or two a year I'll tweak my 401k contribution elect...
by IlliniDave
Thu Mar 26, 2015 7:13 am
 
Forum: Investing - Theory, News & General
Topic: I've Got to be Doing "Something". And You?
Replies: 22
Views: 3110

Re: Wash Sale (w/ a slight spin)

I TLH whenever I can, but am careful to isolate things. I've not encountered a situation where I had a capital loss in something that I had exactly "mirrored" in my 401(k), so I answered "doesn't apply to me". The only fund I have held in both places at once is VG Total Stk Marke...
by IlliniDave
Thu Mar 26, 2015 5:55 am
 
Forum: Investing - Theory, News & General
Topic: Wash Sale (w/ a slight spin)
Replies: 23
Views: 1621

Re: Help w/ adult child hard-wired for poor financial decisi

"One of the hard things for me is that I do plan to retire early, in about 4.5-5.5 years, at which point I'm intending to pull up stakes and initially go "back home" to help take care of my parents, and spend time at cabin I recently bought in the Northwoods near the Canadian border&...
by IlliniDave
Wed Mar 25, 2015 6:22 am
 
Forum: Personal Finance (Not Investing)
Topic: Help w/ adult child hard-wired for poor financial decisions?
Replies: 45
Views: 4716

Re: Help w/ adult child hard-wired for poor financial decisi

You sound like a very concerned and caring father IlliniDave. She has four dogs that she cares about very much. Has the financial responsibilities of caring for a menagerie not caused her to rethink her financial self-sufficiency? There are vet bills, food costs, plus the responsibilities of mainta...
by IlliniDave
Wed Mar 25, 2015 6:14 am
 
Forum: Personal Finance (Not Investing)
Topic: Help w/ adult child hard-wired for poor financial decisions?
Replies: 45
Views: 4716

Re: Help w/ adult child hard-wired for poor financial decisi

Again, I'll thank everyone for taking the effort to respond. There were more than a few thoughts that hit the mark in one way or the other. I don't want to turn this into an argument or a situation where I'm looking to convince everyone I'm "right" and she's "wrong" or anything l...
by IlliniDave
Wed Mar 25, 2015 4:24 am
 
Forum: Personal Finance (Not Investing)
Topic: Help w/ adult child hard-wired for poor financial decisions?
Replies: 45
Views: 4716

Re: Help w/ adult child hard-wired for poor financial decisi

Thanks for all the thoughts, just a items to add for clarity. By reasonably intelligent I mean she would typically average in the 70-80th percentile or so on the various standardized tests they were administering while she was in school. Her relationship with her sister is good (just the two of them...
by IlliniDave
Tue Mar 24, 2015 1:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help w/ adult child hard-wired for poor financial decisions?
Replies: 45
Views: 4716

Help w/ adult child hard-wired for poor financial decisions?

Anyone been down this road with successful resolution? My youngest daughter is a kind, sweet-natured, reasonably intelligent 22-year-old. But she really seems hard wired to make the worst decisions possible as pertains to finances (either directly or indirectly). She possesses what I'd call a polite...
by IlliniDave
Tue Mar 24, 2015 12:26 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help w/ adult child hard-wired for poor financial decisions?
Replies: 45
Views: 4716
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