Search found 1546 matches

by IlliniDave
Sun Jul 05, 2015 6:26 am
Forum: Investing - Theory, News & General
Topic: Spending from separate retirement buckets
Replies: 34
Views: 2713

Re: Spending from separate retirement buckets

I do believe it ultimately is semantics. If you are retired and have a 60/40 portfolio and follow the strategy of keeping your next 0-3 years spending in low volatility assets, you can think of that as being part of your 40% allocation OR you can consider it in your short-term bucket. Same assets, ...
by IlliniDave
Sat Jul 04, 2015 5:54 am
Forum: Investing - Theory, News & General
Topic: Emergdoc on Mr. Money Mustache
Replies: 166
Views: 16004

Re: Emergdoc on Mr. Money Mustache

I really don't care much about MMM one way or the other. It's just funny that, outside of Mr. Bogle himself (and that's a whole other subject we could talk about :D ), MMM seems to have a real fan club here with an emotional component for such a numbers-and-logic-oriented website (Bogleheads). Ther...
by IlliniDave
Fri Jul 03, 2015 7:08 am
Forum: Personal Finance (Not Investing)
Topic: Average raises for promotions
Replies: 29
Views: 2416

Re: Average raises for promotions

For me, raises tied directly to promotions over 28 years in engineering at my megacorp ranged from 4% to 7%. There was one exception where I got 17% but that was a combined promotion/"equitable adjustment" for enduring a couple years of pay freezes at a site that ultimately closed down bef...
by IlliniDave
Fri Jul 03, 2015 6:34 am
Forum: Investing - Theory, News & General
Topic: What is the Duration of Your Bond Portfolio? And Why?
Replies: 53
Views: 3189

Re: What is the Duration of Your Bond Portfolio? And Why?

Mine is intermediate and not much of a "portfolio". In taxable I have only municipal for the obvious reason, and those are intermediate. In my 401 the only real choice is a total bond market index trust, which averages out to intermediate, it seems. In my little Roth IRA, which is my play ...
by IlliniDave
Thu Jul 02, 2015 5:48 am
Forum: Investing - Theory, News & General
Topic: Emergdoc on Mr. Money Mustache
Replies: 166
Views: 16004

Re: Emergdoc on Mr. Money Mustache

One thing I've taken from MMM's writings and similar writings by other philosophers is to really analyze everything you spend money on for how much happiness it brings you. This is one of the most beneficial things I've ever done for myself financially, and in general. It allowed me to jettison a l...
by IlliniDave
Tue Jun 30, 2015 11:11 am
Forum: Investing - Theory, News & General
Topic: Emergency Portfolio with 30% Stocks
Replies: 33
Views: 1775

Re: Emergency Portfolio with 30% Stocks

I agree with what others have said. These are simply my personal opinions. 1. It's advisable to have a pretty decent chunk in cash. 2. If part of it is going to be invested, it should be a somewhat large fund (above the generic 3-6 months expenses most often recommended). The portfolio you describe ...
by IlliniDave
Tue Jun 30, 2015 6:10 am
Forum: Investing - Theory, News & General
Topic: Are REITs necessary in a portfolio? Why?
Replies: 80
Views: 5673

Re: Are REITs necessary in a portfolio? Why?

No, not necessary. No specialized/sector fund is necessary.
by IlliniDave
Tue Jun 30, 2015 6:07 am
Forum: Investing - Theory, News & General
Topic: Am I in a Bad Position?
Replies: 26
Views: 3111

Re: Am I in a Bad Position?

I don't think your in a bad position. It may not be the best position for you given your apparent level of worry. But at age 30 having a high equity allocation is not imprudent in-and-of-itself (I was 100% until my middle 40s). The funds you are invested in are excellent choices. Forget about your f...
by IlliniDave
Tue Jun 30, 2015 3:54 am
Forum: Personal Finance (Not Investing)
Topic: What's your net worth break down? What's ideal?
Replies: 44
Views: 6448

Re: What's your net worth break down? What's ideal?

Tax-advantaged retirement accounts 61% Real estate (home plus "vacation" property) 34% Taxable investments 4% Miscellaneous 1% I'm 51 and have no debt. I have more tied up in real estate than I would like, but I'm planning on downsizing my residence when I retire in 1-4 years. No idea what...
by IlliniDave
Mon Jun 29, 2015 8:35 am
Forum: Investing - Theory, News & General
Topic: When saving money becomes an irrational obsession
Replies: 146
Views: 20291

Re: When saving money becomes an irrational obsession

My extra reserves is my "swan portfolio", for those who don't know what a swan is (plagerizing from fellow poster "CFS") - sleep well at night and it is completely rational. I was discussing this with a friend last week. I'm a firm believer that sleeping well at night is essenti...
by IlliniDave
Mon Jun 29, 2015 6:54 am
Forum: Investing - Theory, News & General
Topic: dow futures down 200+ points
Replies: 84
Views: 9034

Re: dow futures down 200+ points

Decent chance of an "RBD" on Wall St given what the world is doing. Ten years from now it will largely be forgotten most likely. In reaction to the financial setback I will eliminate kalamata olives and feta cheese from my food spending plan until I recoup the loss.
by IlliniDave
Sat Jun 27, 2015 7:14 am
Forum: Personal Finance (Not Investing)
Topic: Future of SS due to Supreme Court Decision on Gay Marriages
Replies: 16
Views: 2109

Re: Future of SS due to Supreme Court Decision on Gay Marriages

I guess it depends on how one defines "significant". It likely has some net impact, but it's hard to see it as a difference-maker.
by IlliniDave
Thu Jun 25, 2015 9:40 pm
Forum: Investing - Theory, News & General
Topic: Did 2008 change your investing strategy?
Replies: 58
Views: 4714

Re: Did 2008 change your investing strategy?

A little. More than the crash was going on for me. From 2007-2009 I lowered my equity from 100% to around 80%.
by IlliniDave
Tue Jun 23, 2015 11:58 am
Forum: Investing - Theory, News & General
Topic: What was the 2008 crash like in real time?
Replies: 218
Views: 20152

Re: What was the 2008 crash like in real time?

I was going through divorce/QDRO processing at the time, so I had deviated substantially from my plan while that completed. The whole market thing was pretty awful to follow through late 2007and into very early 2008. Then I just gave up, assumed my financial life was permanently ruined, and ignored ...
by IlliniDave
Tue Jun 23, 2015 7:07 am
Forum: Investing - Theory, News & General
Topic: When saving money becomes an irrational obsession
Replies: 146
Views: 20291

Re: When saving money becomes an irrational obsession

Here's a challenge for everyone: what advice would you give to a young person if you knew their tendency was to oversave, rather than spend? The first question is why a person oversaves: 1) If it's to provide more money for heirs and charity, then I wouldn't consider that irrational. 2) At least on...
by IlliniDave
Mon Jun 22, 2015 11:43 am
Forum: Personal Finance (Not Investing)
Topic: What percent of your spending is "basic" and what percent is "discretionary"?
Replies: 42
Views: 3832

Re: What percent of your spending is "basic" and what percent is "discretionary"?

Off the top of my head I'd say about 60% basic, 40% discretionary, although there's obviously some gray area in there. For example I would count travel as discretionary, but most of my travel is to visit family which I consider pretty important. In my actual spending plan I don't differentiate in an...
by IlliniDave
Mon Jun 22, 2015 6:19 am
Forum: Investing - Theory, News & General
Topic: When saving money becomes an irrational obsession
Replies: 146
Views: 20291

Re: When saving money becomes an irrational obsession

I would say if the person is not unhappy, who cares? I have an acquaintance who is obsessed with creating new day lily hybrids. It's his hobby. He likes it. He can't take them with him when he dies. Whether it is rational or irrational is irrelevant. While I'm sure there are pathological cases, I am...
by IlliniDave
Mon May 25, 2015 6:55 pm
Forum: Personal Finance (Not Investing)
Topic: Friends/Family that don't invest!
Replies: 94
Views: 11249

Re: Friends/Family that don't invest!

Have you encountered friends/family that don't save for retirement and when you ask why they respond with something like "how do you know you won't lose it?" I understand they may not want risk, however even investing in bonds (VBTLX for example) they would assume almost 0 risk and make s...
by IlliniDave
Mon May 25, 2015 6:44 pm
Forum: Personal Finance (Not Investing)
Topic: When is it safe to share financial details with gf, future wife
Replies: 53
Views: 5265

Re: When is it safe to share financial details with gf, future wife

I didn't read the entire thread, but I would say to hold off discussing it in detail until you are formally engaged. Sounds like you already know you are reasonably compatible with her financially. And it really shouldn't be about whose is bigger than whose, more of a discussion of how you want to p...
by IlliniDave
Mon May 25, 2015 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: A different way of calculating when to retire
Replies: 26
Views: 2827

Re: A different way of calculating when to retire

Interesting idea, especially if "enjoying wealth" is one of the main tenets of person's retirement. Do folks need to be reminded that "enjoying wealth" is possible without being retired? Not really, the OP already said he's doing that. He was positing criteria for retirement so ...
by IlliniDave
Mon May 25, 2015 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: A different way of calculating when to retire
Replies: 26
Views: 2827

Re: A different way of calculating when to retire

And in response to those who think spending more won't make you happier: fair point, but not having to worry about money at all (including how one spends it, not just how one earns it or whether one has enough to live a minimalist lifestyle) seems to me to be the ultimate luxury. Penny pinching in ...
by IlliniDave
Mon May 25, 2015 2:27 pm
Forum: Personal Finance (Not Investing)
Topic: A different way of calculating when to retire
Replies: 26
Views: 2827

Re: A different way of calculating when to retire

Interesting idea, especially if "enjoying wealth" is one of the main tenets of person's retirement. Seems this criteria could eventually get you to a point where ongoing savings have minimal impact on future wealth. For me, early retirement is more about enjoying time than money, so such a...
by IlliniDave
Mon May 25, 2015 5:55 am
Forum: Investing - Theory, News & General
Topic: Stemikger "Volatility is far from synonymous with risk."
Replies: 152
Views: 10141

Re: Stemikger "Volatility is far from synonymous with risk."

It's an interesting discussion. I've never been comfortable with equating risk with volatility (i.e., standard deviation). I have an especially hard time with ideas like risk-adjusted returns. Maybe it's because standard deviation is usually computed at very short time intervals (months, I think) an...
by IlliniDave
Fri May 22, 2015 10:06 am
Forum: Personal Finance (Not Investing)
Topic: Career Advice: Follow "Passion" or Follow the Money?
Replies: 73
Views: 4693

Re: Career Advice: Follow "Passion" or Follow the Money?

I'll go with a paraphrase of Mike Rowe's advice: chase opportunities, prioritize the financially prudent course, not your passions...but always carry your passions with you. In your case you're choosing between two perfectly viable paths to making a living, so you're not his target audience in that....
by IlliniDave
Fri May 22, 2015 5:09 am
Forum: Investing - Theory, News & General
Topic: Market Cap and Value
Replies: 46
Views: 2434

Re: Market Cap and Value

Nedsaid: Oh my gosh. My secret is out. Toto has pulled back the curtain and the mighty Nedsaid is just a man bellowing into a microphone and pulling some levers. Yep, I pretty much eye-ball it. I also take a look at market sentiment. I have admitted to "investing by feel." I am sure that ...
by IlliniDave
Thu May 21, 2015 5:46 pm
Forum: Investing - Theory, News & General
Topic: Market Cap and Value
Replies: 46
Views: 2434

Re: Market Cap and Value

Nedsaid: Oh my gosh. My secret is out. Toto has pulled back the curtain and the mighty Nedsaid is just a man bellowing into a microphone and pulling some levers. Yep, I pretty much eye-ball it. I also take a look at market sentiment. I have admitted to "investing by feel." I am sure that ...
by IlliniDave
Wed May 20, 2015 8:01 pm
Forum: Investing - Theory, News & General
Topic: The BIG problem with the S&P 500 index?
Replies: 37
Views: 6224

Re: The BIG problem with the S&P 500 index?

What the "market" is, is dollars. So the more of the market dollars you include the better your sampling of the market. I have some "500 Index" in my 401 so I can rebalance in my 401 without killing tax loss harvesting potential in my Total Stock Market Index on the taxable side....
by IlliniDave
Wed May 20, 2015 12:48 pm
Forum: Personal Finance (Not Investing)
Topic: Ways to fund an early retirement?
Replies: 40
Views: 2608

Re: Ways to fund an early retirement?

Thank you all for the help! I have a lot to dig through and I appreciate the comments. One other question for those who relied at least in part on taxable accounts: did you contribute occasional lump sums, or did you do regular (say monthly) contributions? Putting aside the dollar cost averaging di...
by IlliniDave
Wed May 20, 2015 11:19 am
Forum: Personal Finance (Not Investing)
Topic: Ways to fund an early retirement?
Replies: 40
Views: 2608

Re: Ways to fund an early retirement?

I max out my tax-advantaged space then contribute to taxable investments until just short of it starting to hurt. I'll be downsizing my home when the time comes too, the spare equity will be shoveled into taxable. I'm strongly considering SEPP from my 401 right away. The biggest key for me was not i...
by IlliniDave
Wed May 20, 2015 11:08 am
Forum: Personal Finance (Not Investing)
Topic: How much does social security factor into your retirement income?
Replies: 169
Views: 12603

Re: How much does social security factor into your retirement income?

No bravado here. I arguably won't need it, but it absolutely figures significantly into my age 70+ income. $35K+ per year is good money!! It will almost double my income.
by IlliniDave
Wed May 20, 2015 3:56 am
Forum: Investing - Theory, News & General
Topic: Rick Ferri Launching A Robo Advisory
Replies: 12
Views: 2963

Re: Rick Ferri Launching A Robo Advisory

Seems like a good way for the newest of investors to get the ball rolling with some sort of a plan/process before they really reach the point in life where individual/personal advice is worth the cost. To me 0.25% seems like a lot to charge for that given the implication is that it's just plugging i...
by IlliniDave
Tue May 19, 2015 8:37 pm
Forum: Investing - Theory, News & General
Topic: Let's hear your Dave Ramsey success stories
Replies: 79
Views: 12568

Re: Let's hear your Dave Ramsey success stories

I don't know, maybe I am not really following Dave's advice. But it was nice to read the book, read the success stories, and have steps that gave me goals and hope (even if I did modify the steps a bit). It's all common sense. A lot of it didn't really apply to me since I wasn't the one who ran up ...
by IlliniDave
Tue May 19, 2015 6:20 am
Forum: Personal Finance (Not Investing)
Topic: How do Bogleheads (in general) plan to finance their healthcare for later life?
Replies: 34
Views: 3852

Re: How do Bogleheads (in general) plan to finance their healthcare for later life?

My plan is to be an early retiree. My health is pretty decent so far. I plan to start an ACA HDHP plan and begin to fund an HSA. I'm looking at going the SEPP route with my 401k (or IRA if I roll it over). That would give me a slight excess of "income", which I would direct into the HSA up...
by IlliniDave
Tue May 19, 2015 3:28 am
Forum: Investing - Theory, News & General
Topic: What's so great about simplicity?
Replies: 118
Views: 10002

Re: What's so great about simplicity?

Not to sound overly trite, but simple is, well, simple. Not everyone enjoys an extra degree of challenge in keeping their investments in order. And I don't think there's a lot of evidence to support the idea that complexity systematically brings better results. Some of us, me included, enjoy adding ...
by IlliniDave
Fri May 15, 2015 5:21 am
Forum: Personal Finance (Not Investing)
Topic: Am I a Millionaire???
Replies: 53
Views: 6700

Re: Am I a Millionaire???

Since you are essentially talking joint assets, but using the singular pronoun, I'd say you are half way there. I don't have a problem counting the value of one's home in one's net worth. I do (actually rather a conservative estimate of what I'd net on a sale). I don't count vehicles myself--if you ...
by IlliniDave
Fri May 15, 2015 5:02 am
Forum: Investing - Theory, News & General
Topic: Too late to invest in Health Care Fund?
Replies: 56
Views: 4936

Re: Too late to invest in Health Care Fund?

I stuck my 2015 backdoor Roth money into this fund. The Roth account is my "play space" where I exercise my urge to try and be clever. I don't expect anything spectacular in the short/medium term. Over the long haul I'm just hoping for somewhat different behavior than the other odds/ends I...
by IlliniDave
Thu May 14, 2015 3:42 pm
Forum: Investing - Theory, News & General
Topic: Your Safety Net
Replies: 31
Views: 4018

Re: Your Safety Net

Seems like that would work for some folks. I'm on the cusp of early retirement and don't intend to do anything quite like that. I do have sort of a bucket strategy that helped me determine my overall AA, but it does not include cash. I do keep a 1 yr emergency fund as part of my household finances, ...
by IlliniDave
Thu May 14, 2015 3:56 am
Forum: Investing - Help with Personal Investments
Topic: Looking for input on investing a windfall
Replies: 14
Views: 2026

Re: Looking for input on investing a windfall

Very sorry for your loss. I agree with the prior poster that there is no need to be in a big hurry. It's okay to leave the money in cash for some additional time while you continue to learn more about personal investing. It is difficult to provide specific thoughts not knowing how much of a windfall...
by IlliniDave
Mon May 11, 2015 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: Philosophies of frugality.
Replies: 64
Views: 7215

Re: Philosophies of frugality.

Frugality is not a synonym for misery. In a sense, frugality has its roots in self-respect--in general we give up part of our allotment in this life in exchange for money. So we should be careful to ensure that what we do with the money has a positive impact on our quality of life, so that our time ...
by IlliniDave
Mon May 11, 2015 11:53 am
Forum: Investing - Theory, News & General
Topic: Poll: Increasing international equities
Replies: 70
Views: 5833

Re: Poll: Increasing international equities

I'm increasing slightly, through new purchase (split between bonds, total international ex-us, and E/M). In a sense it is 'staying the course' because the shift in AA is part of the plan.
by IlliniDave
Mon May 11, 2015 3:48 am
Forum: Investing - Theory, News & General
Topic: Skeptical of consistent dividend growth
Replies: 18
Views: 1701

Re: Skeptical of consistent dividend growth

If earnings are not growing neither dividends nor share price will offer much total return growth. Some companies are consistently profitable and well-run, but just not positioned for indefinite growth of the business (plowing too much earnings into the company is futile). Others are more able to gr...
by IlliniDave
Fri May 08, 2015 12:22 pm
Forum: Personal Finance (Not Investing)
Topic: Do Updates to Home Increase Market Value?
Replies: 32
Views: 2545

Re: Do Updates to Home Increase Market Value?

I don't have much of value to add to this thread. Just wanted to thank all the participants. It's been immensely timely and helpful--answered a whole mouthful of questions before I could even ask them (I too am getting ready to sell my home and being encouraged to list it at what I felt was a price ...
by IlliniDave
Thu May 07, 2015 4:30 pm
Forum: Investing - Theory, News & General
Topic: McNabb op ed - possible 8% cash requirement
Replies: 33
Views: 3197

Re: McNabb op ed - possible 8% cash requirement

I don't like the sound of this--it punishes successful funds by stripping investors of 8% of their returns. That's almost adding an additional 0.48% ER to a fund making 6%.

Low cost investing will be a game of hunting around for smaller funds. Would cut the 3-fund strategy off at the knees maybe.
by IlliniDave
Tue May 05, 2015 7:31 am
Forum: Investing - Theory, News & General
Topic: Vanguard: The Problem of World Domination?
Replies: 21
Views: 2893

Re: Vanguard: The Problem of World Domination?

I think it's the buy and hold/low volatility aspect that will have more of an effect than indexing per se. Any buy and hold investor, index or not, removes a number of shares from the market, sometimes for decades. But if more people move away from picking towards holding, the pool of acting traders...
by IlliniDave
Tue May 05, 2015 6:49 am
Forum: Investing - Theory, News & General
Topic: Source for return standard deviation as function of AA
Replies: 5
Views: 392

Source for return standard deviation as function of AA

Does anyone know a convenient source to find the standard deviation of historical returns for various AA increments of US stock/bond portfolios. I used to have once somewhere and have lost it. Thanks.
by IlliniDave
Mon May 04, 2015 11:33 am
Forum: Personal Finance (Not Investing)
Topic: HSA contribution Strategies for early/semi-retired person
Replies: 5
Views: 537

Re: HSA contribution Strategies for early/semi-retired person

Thanks, definitely some things to think about. Seems like once I get on the HDHP it makes nothing but sense to fund the account as much as I can up until medicare. If I decide to go the SEPP route, I wind up with a little more income than I think I need, so it would seem I can pay the taxes on the S...
by IlliniDave
Mon May 04, 2015 7:51 am
Forum: Personal Finance (Not Investing)
Topic: HSA contribution Strategies for early/semi-retired person
Replies: 5
Views: 537

HSA contribution Strategies for early/semi-retired person

Long story short, it looks like my professional career will be winding down in the next 1-2 years. I currently do not have an HDHP plan, and hence no current HSA. Once I stop working full time I'll be purchasing through the ACA exchange. I'm considering some of the HSA-eligible plans. I'll be 51 lat...
by IlliniDave
Sun May 03, 2015 8:01 pm
Forum: Investing - Theory, News & General
Topic: Reverse Glide Path
Replies: 14
Views: 965

Re: Reverse Glide Path

I might wind up on such a path, though it won't be any kind of deliberate thing. I'm intending to use a variant of LMP with "extra" assets invested with my kids's ages in mind. In time most of those assets will wind up in taxable accounts, so I plan for minimal transacting and only modest ...

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