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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: 8
Views: 1055

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: 60
Views: 3075

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: 22
Views: 3768

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: 108
Views: 5502

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: 4688

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: 319

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: 319

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: 2289

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: 57
Views: 3587

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: 660

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: 9695

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: 57
Views: 3587

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: 2909

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: 113
Views: 9857

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: 2289

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: 108
Views: 5502

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: 4748

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: 4460

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: 65
Views: 6071

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: 4289

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: 285

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: 94
Views: 8364

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: 3071

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: 1428

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: 4664

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: 4664

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: 4664

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: 4664

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: 4664

Re: The one area I disagree with Jack

The point remains that the investor needs to consider the consequences of how actual money is invested and not confuse income with actual money on account. After that whatever decision that investor cares to make is up to them. I agree with this. Folks sometimes take some of these ideas/Bogle's dis...
by IlliniDave
Tue Mar 24, 2015 9:53 am
 
Forum: Investing - Theory, News & General
Topic: The one area I disagree with Jack
Replies: 93
Views: 7325

Re: The one area I disagree with Jack

I do not intend to go 100% equities, but for someone who's comfortable with their fixed income level as their income floor, I'm not going to call them delusional if they put their excess money in stocks The delusional part is thinking your pseudo bond results in you having a moderate risk portfolio...
by IlliniDave
Tue Mar 24, 2015 9:38 am
 
Forum: Investing - Theory, News & General
Topic: The one area I disagree with Jack
Replies: 93
Views: 7325

Re: The one area I disagree with Jack

I generally agree with Bogle on this. I have been retired 8 years and am 64. Current portfolio is 100% equity because when I capitalize my pension it works out to about 60/40 equity to FI. Obviously I have a pretty high tolerance for risk. But a pension gives the same benefit as FI in the AA decisi...
by IlliniDave
Tue Mar 24, 2015 7:33 am
 
Forum: Investing - Theory, News & General
Topic: The one area I disagree with Jack
Replies: 93
Views: 7325

Re: "Mind the Gap"

If 95% of investors stay the course and it's the other 5% who are jumping in an out, then fund flows are only measuring the activities of the 5% who jump in an out, and ignore the 95% who stay the course. That's true, but I'm always "jumping in" (both new savings contributions and reinves...
by IlliniDave
Tue Mar 24, 2015 3:51 am
 
Forum: Investing - Theory, News & General
Topic: "Mind the Gap"
Replies: 9
Views: 2299

Re: Anyone concerned about their bond holdings?

I don't have any bond funds that I intend to sell until several multiples of their average maturity down the road, so my concerns are minimal. It might be a little disconcerting to see the NAVs droop a little during the transition, but I've known for years it was coming and I'll have to get by with ...
by IlliniDave
Mon Mar 23, 2015 11:39 am
 
Forum: Investing - Theory, News & General
Topic: Anyone concerned about their bond holdings?
Replies: 58
Views: 5674

Re: VGPMX [Vanguard Precious Metals And Mining Fund]

I did this about a year ago. I use my little baby backdoor Roth for my play space, and not only was it down, but it often zags when everything else zigs. So far I've lost about 15%. I don't think the fund will ever climb back to it's previous relative zenith--that was probably a case of catching lig...
by IlliniDave
Mon Mar 23, 2015 6:26 am
 
Forum: Investing - Theory, News & General
Topic: VGPMX [Vanguard Precious Metals And Mining Fund]
Replies: 24
Views: 2353

Re: How important is an international allocation?

To answer your question, for an "emergency fund" you probably do not need to bother with an international fund. As a matter of fact, I've never encountered an authority that recommends international funds for an emergency fund (that does not mean such advice doesn't exist, just that it is ...
by IlliniDave
Mon Mar 23, 2015 6:18 am
 
Forum: Investing - Theory, News & General
Topic: How important is an international allocation?
Replies: 66
Views: 4557

Re: Should I invest my emergency fund?

I keep part of my "emergency fund" in cash/MM, something in the 3-6 months worth of expenses range. I round out a year's worth using tax exempt bonds. Also, I tend to always have a "sinking fund" or two going for various reasons that I would probably raid rather than sell the bon...
by IlliniDave
Mon Mar 23, 2015 4:07 am
 
Forum: Investing - Theory, News & General
Topic: Should I invest my emergency fund?
Replies: 71
Views: 6029

Re: The one area I disagree with Jack

I never hear those who espouse that say count your salary as a bond? In a sense, that idea is at the core of "age-in-bonds" and most of the glide-path type stuff. People really into MPT call it your "human capital". It declines over time, and a ratcheting up of bonds is an appro...
by IlliniDave
Sun Mar 22, 2015 11:10 am
 
Forum: Investing - Theory, News & General
Topic: The one area I disagree with Jack
Replies: 93
Views: 7325

Re: The one area I disagree with Jack

I follow John Bogle very closely. I don't just blindly follow, but I truly agree with everything he says, except one small piece of advice. I agree with not needing international, I agree with simplicity and I agree with not looking at your statements too often. However, the one area he might lose ...
by IlliniDave
Sun Mar 22, 2015 6:33 am
 
Forum: Investing - Theory, News & General
Topic: The one area I disagree with Jack
Replies: 93
Views: 7325

Re: What Age Did You First Ponder Financial Independence?

I probably first pondered it in an abstract sense when I was in my late twenties and had a few years of investing under my belt. In a sense I always knew I would "retire" someday--it's just what people did, but that was when I first began to contemplate getting myself there. I first began ...
by IlliniDave
Sun Mar 22, 2015 5:59 am
 
Forum: Personal Finance (Not Investing)
Topic: What Age Did You First Ponder Financial Independence?
Replies: 74
Views: 6810

Re: How do you invest your taxable account?

I have good low cost US indexes in my 401k, so moved some of the international outside because I'd read several places that doing so provides the opportunity to take advantage of foreign tax credits that would be lost inside the 401k. However, Int'l tends to have higher dividends and a lower percen...
by IlliniDave
Fri Mar 20, 2015 12:14 pm
 
Forum: Investing - Theory, News & General
Topic: How do you invest your taxable account?
Replies: 62
Views: 5863

Re: How do you invest your taxable account?

Once people can no longer utilize tax advantage accounts, how should extra savings be invested? Do people use tax free bonds? I'm in a 28% federal and 3% state tax bracket. Do people continue with their same investments as in their tax advantage accounts? For example, do you invest in a 3 fund port...
by IlliniDave
Fri Mar 20, 2015 10:58 am
 
Forum: Investing - Theory, News & General
Topic: How do you invest your taxable account?
Replies: 62
Views: 5863

Re: An inspiring message for Bogleheads

The math works out if you assume that Peter was living at home with his dad and incurred no living expenses. Total income over 4 years: $95,680 ($11.50 per hour x 40 hours a week x 52 weeks a year) - taxes = $86,112 - $10k student loan = $76112, or $19028 annually I googled "average cost of co...
by IlliniDave
Fri Mar 20, 2015 7:42 am
 
Forum: Investing - Theory, News & General
Topic: An inspiring message for Bogleheads
Replies: 56
Views: 4201

Re: An inspiring message for Bogleheads

Thanks, Taylor, for sharing that. Though I'm coming up on my second anniversary as a member of this site, I do not think of myself as a full-fledged boglehead when it comes to the truly one-of-a-kind resource this community is. I'm still more of a taker than a giver. I suspect many of us, like me, w...
by IlliniDave
Fri Mar 20, 2015 7:31 am
 
Forum: Investing - Theory, News & General
Topic: An inspiring message for Bogleheads
Replies: 56
Views: 4201

Re: Is this Investing or Speculating?

My personal view, in other words, how I score things for myself, is that if your intent is to hold the position for a substantial length of time, it is an investment. If your mentality is that of a person that combs garage sales this weekend to find items to sell for a profit at next weekend's flea ...
by IlliniDave
Fri Mar 20, 2015 5:51 am
 
Forum: Investing - Theory, News & General
Topic: Is this Investing or Speculating?
Replies: 24
Views: 2015

Re: nondeductible traditional IRA -> roth?

You could look for a thread on "Mega Backdoor Roth", but I don't think that would help you if her rolled-over 401 was all pre-tax. But there was recently some clarification from the IRS that under some circumstances pre-tax 401k money can be segregated from nondeductible retirement contrib...
by IlliniDave
Thu Mar 19, 2015 4:00 am
 
Forum: Investing - Help with Personal Investments
Topic: nondeductible traditional IRA -> roth?
Replies: 8
Views: 787

Re: master bath remodel: return on investment?

I did a pretty substantial renovation/upgrade to my master bath when a plumbing problem forced me to redo the shower, tub, and floor anyway; but the cost was about half what you're looking at (but I can see how it might easily get up into your range, it was a struggle to keep my costs as low as I di...
by IlliniDave
Thu Mar 19, 2015 3:43 am
 
Forum: Personal Finance (Not Investing)
Topic: master bath remodel: return on investment?
Replies: 42
Views: 2826

Re: Did you buy a house because of low interest rate?

No, I bought one because I needed a place to live and believed at the time that owning a home was the best option for me. I bought less than I could "afford", so interest rate wasn't a big factor. This was in the 1990s and I remember the interest rate was something close to 6.875% At the t...
by IlliniDave
Tue Mar 17, 2015 11:53 am
 
Forum: Personal Finance (Not Investing)
Topic: Did you buy a house because of low interest rate?
Replies: 25
Views: 1749

Re: Article: The Death of The Millionaire Next Door Dream

I don't doubt that it could be somewhat harder. But the principals of living below your means, and putting your residual money to work for you, will always give you some benefit.
by IlliniDave
Tue Mar 17, 2015 11:44 am
 
Forum: Investing - Theory, News & General
Topic: Article: The Death of The Millionaire Next Door Dream
Replies: 20
Views: 5367

Re: Do Fund Prices Rise Ahead of the Dividend Issue ?

They do in the sense that as a fund receives dividends or realizes capital gains, the money that is held pending distribution is added to the NAV on top of the value of the underlying securities. Then when the distribution is made, the distributed amount is subtracted from the NAV. At least that's m...
by IlliniDave
Tue Mar 17, 2015 11:32 am
 
Forum: Investing - Theory, News & General
Topic: Do Fund Prices Rise Ahead of the Dividend Issue ?
Replies: 8
Views: 836
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