Search found 1309 matches

Return to advanced search

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: 966

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: 55
Views: 3234

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: 2687

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: 1323

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: 179
Views: 10593

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: 3425

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: 6697

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: 10167

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: 7653

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: 2315

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: 5635

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: 2468

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: 2315

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: 785

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: 3696

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: 4850

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: 4503

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: 3696

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: 2322

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: 3651

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: 4932

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: 3651

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: 3838

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: 5392

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: 7970

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: 2243

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: 2243

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: 4584

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: 4660

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: 2940

Re: Does severance pay reduce or relace unemployment benefit

In my state they essentially treat you as if you're still employed for as long as you are receiving severance payments. Once they stop, you can then receive unemployment insurance payments. People typically file right away and provide whatever they have in writing regarding severance benefits. I hav...
by IlliniDave
Sun Jul 27, 2014 6:20 am
 
Forum: Personal Finance (Not Investing)
Topic: Does severance pay reduce or relace unemployment benefits?
Replies: 52
Views: 3292

Re: Vanguard sued for charging too little

Well, either VG fund investors make 100% of the net "profit" and pay taxes on it or VG retains a portion of the profit as its own profit and pays taxes on it. So it's mostly a question of who has paid the taxes, not whether the money has been taxed. The "contingency fund" is inte...
by IlliniDave
Sun Jul 27, 2014 6:06 am
 
Forum: Personal Finance (Not Investing)
Topic: Vanguard sued for charging too little
Replies: 187
Views: 21158

Re: Here's another "where should I retire" thread

Sounds like you have enough wealth that "cost" of living really could be a secondary consideration. If her wishes trump yours, then go where she wants. I'd think about possibly getting a second home (winter beach house in a warm location, summer mountain home, something like that), maybe a...
by IlliniDave
Thu Jul 24, 2014 12:34 pm
 
Forum: Personal Consumer Issues
Topic: Here's another "where should I retire" thread
Replies: 104
Views: 6432

Re: Hw many credit cards to own?

I quit using credit cards in 2008. From 2008-2014 all the accounts closed (except one I have from my employer, on which the limit was lowered to $15 from disuse). oOver that time my credit score rose appreciably (as my married years receded in to the past and began to roll off). In the last couple w...
by IlliniDave
Mon Jul 21, 2014 8:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: Hw many credit cards to own?
Replies: 121
Views: 9225

Re: Poll: Has your AA changed in the last 18 months

More conservative but just by a token amount (5%). Both valuations and having turned 50 influenced the decision.
by IlliniDave
Sun Jul 20, 2014 6:45 pm
 
Forum: Investing - Theory, News & General
Topic: Poll: Has your AA changed in the last 18 months
Replies: 58
Views: 3752

Re: [Poll] % of 3 funds in your financial asset portfolio?

I answered around 70%. I didn't bother to go calculate it. It's somewhere between 65% and 80%. I've got some EM (index), small tilt (index), REIT (index), tax-exempt bonds, high yield bonds, and active equity funds mixed in.
by IlliniDave
Sat Jul 19, 2014 8:22 am
 
Forum: Investing - Theory, News & General
Topic: [Poll] % of 3 funds in your financial asset portfolio?
Replies: 31
Views: 1735

Re: Should We Buy a Retirement House Now?

I'm giving strong consideration to the same thing. In the area I'm looking at, by all accounts the market is just showing its first signs of life since 2007. Seems prudent maybe to take my chances now rather than risk eating 5 years of recovery/appreciation. Driving 1000 miles in two weeks to start ...
by IlliniDave
Wed Jul 16, 2014 9:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: Should We Buy a Retirement House Now?
Replies: 11
Views: 1559

Re: Why I can't be a day trader.

I've never bought or sold a share of stock or an ETF, so the intraday thing has never been germane to me. Buying/selling mutual funds is a once a day thing at close. Most days are up days, so most of the time what I sold goes up the next day. Just have to get used to it.
by IlliniDave
Wed Jul 16, 2014 1:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: Why I can't be a day trader.
Replies: 38
Views: 3068

Re: POLL: Do you have a dedicated REIT allocation?

I'm a yes, although I've only been establishing the position for a couple of months. Currently around 0.5%, headed maybe to 5% over the next 2 years or so.
by IlliniDave
Wed Jul 16, 2014 1:25 pm
 
Forum: Investing - Theory, News & General
Topic: POLL: Do you have a dedicated REIT allocation?
Replies: 123
Views: 7341

Re: Retiring soon setting aside 3 years living expenses

I think I can try to explain the mind set: Folks who retire before age 59.5 with a little bit in a taxable account do not wish to have to withdraw any money from their IRAs before age 59.5, so they want their taxable account to last until they reach age 59.5. They are afraid that a market crash bef...
by IlliniDave
Tue Jul 15, 2014 8:59 am
 
Forum: Personal Finance (Not Investing)
Topic: Retiring soon setting aside 3 years living expenses
Replies: 49
Views: 5424

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

I'm not sure if that's enough of a drop/deviation to prompt me to take action, I'm kind of loose with my AA, and on sort of on a glide path towards more conservative allocations. So I might just stand pat in the face of 25% equity drop, which would cause a 5-6% shift in my AA.
by IlliniDave
Mon Jul 14, 2014 8:35 am
 
Forum: Investing - Theory, News & General
Topic: In a crash, will you re-balance to maintain your target AA?
Replies: 64
Views: 4260

Re: [Poll] How often do you re-balance?

I picked the last option; however, I don't have firm thresholds so for me it's not a completely quantitative process. I use new contributions to, in a sense, continually rebalance, if you want to look at it that way. I also consider myself on somewhat of a glide path moving towards a slightly more c...
by IlliniDave
Mon Jul 14, 2014 8:29 am
 
Forum: Investing - Theory, News & General
Topic: [Poll] How often do you re-balance?
Replies: 25
Views: 2248

Re: Have you quit your job because of your boss?

I've been either lucky or good. I've got along well with all of my bosses during my professional life, even the ones some others around me struggled with. Probably 15 or 20 individuals in all. There were difficult stretches, but things always ended well. Testament to the quality of my supervisors mo...
by IlliniDave
Sun Jul 13, 2014 9:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: Have you quit your job because of your boss?
Replies: 66
Views: 7405

Re: But why not 100% stock index fund?

For a young investor I'd contend it's a perfectly valid approach. Starting today you might not get returns as generous as someone might have gotten 30 years ago, but over 30-40 years, you'll probably make a fair amount of money that way. I invested that way for my first 25 years or so. It can be bum...
by IlliniDave
Sun Jul 13, 2014 9:20 pm
 
Forum: Investing - Theory, News & General
Topic: But why not 100% stock index fund?
Replies: 76
Views: 7373

Re: Is There Need for Plan 'C' (Inverse of Plan B)?

So the inverse of plan B would be: the market is so hot I can't afford to lose out on any more returns so I should put it all in stocks?! :) My new money is going away from US equities (except a token into REITs as my 401 just added that earlier this year and I'm establishing a small position). I ha...
by IlliniDave
Sun Jul 13, 2014 9:14 pm
 
Forum: Investing - Theory, News & General
Topic: Is There Need for Plan 'C' (Inverse of Plan B)?
Replies: 12
Views: 1235

Re: Does anyone expect tilts to *under*perform?

I certainly expect that the various classes people tilt to will underperform at times, maybe even over long stretches. But I also expect that in the long haul they will outperform slightly. I could very easily be wrong. There's additional risk in the approach.
by IlliniDave
Sun Jul 13, 2014 5:50 am
 
Forum: Investing - Theory, News & General
Topic: Does anyone expect tilts to *under*perform?
Replies: 84
Views: 5553

Re: Imputed income (rent) Owner occupied houses.

Imputed income is an extremely well known economic concept http://en.wikipedia.org/wiki/Imputed_income http://www.bea.gov/faq/?faq_id=488 http://www.clearonmoney.com/dw/doku.php?id=public:nipa_imputed_rent I am simply fascinated that Bogleheads who analyze investment portfolios to multiple decimal ...
by IlliniDave
Sat Jul 12, 2014 9:59 pm
 
Forum: Investing - Theory, News & General
Topic: Imputed income (rent) Owner occupied houses.
Replies: 21
Views: 2418

Re: True or False? Your risk tolerance only increases with t

I never even thought much about risk or risk tolerance until I was in my late 40s, and only then because I started thinking in detail about the fact that at some point I would start depending on my investments for part of my living expenses. So for the anecdotal evidence of me, risk tolerance has de...
by IlliniDave
Sat Jul 12, 2014 8:16 am
 
Forum: Investing - Theory, News & General
Topic: True or False? Your risk tolerance only increases with time
Replies: 30
Views: 2375

Re: Car insurance... do you include car rental?

Mine seems to include it as part of the UM (I only carry liability/UM as required by law). But I'll have to check with them to see if I can drop it. I only have a single vehicle and live alone. An interesting, somewhat off-topic anecdote. I once had my car in for a repair that required it stay overn...
by IlliniDave
Sat Jul 12, 2014 7:34 am
 
Forum: Personal Finance (Not Investing)
Topic: Car insurance... do you include car rental?
Replies: 33
Views: 2190

Re: What after-tax income could you live on today?

I answered based on some of my planning data using current expenses, assuming I'm no longer working, settled in my downsized retirement home, with a few items pared back below ideal. The number is about $2000/mo. Last year I spent around $2583/mo, less if I excluded "emergency"-type expens...
by IlliniDave
Sat Jul 12, 2014 6:09 am
 
Forum: Personal Finance (Not Investing)
Topic: What after-tax income could you live on today?
Replies: 48
Views: 5139
Next

Return to advanced search