Search found 3093 matches

Return to advanced search

Re: Taking out mortgage with zero down. Smart or no?

When you refer to my simplistic assumptions being incorrect, the fact you present does not address the assumption at all. Are you suggesting that amongst any set of loans that the default rate would not be higher with no down payment? So for example in the non VA loans with the FHA, I would assume ...
by Jack
Tue Jul 29, 2014 1:43 am
 
Forum: Personal Finance (Not Investing)
Topic: Taking out mortgage with zero down. Smart or no?
Replies: 49
Views: 1896

Re: Taking out mortgage with zero down. Smart or no?

The difference between somebody making a down payment or not is that if there is no down payment, and hence less to lose if anything, one is more likely to default. Think about your willingness to walk away from a house with no money down or one with 30% or 50% down. Your simplistic assumptions are...
by Jack
Mon Jul 28, 2014 2:17 pm
 
Forum: Personal Finance (Not Investing)
Topic: Taking out mortgage with zero down. Smart or no?
Replies: 49
Views: 1896

Re: Taking out mortgage with zero down. Smart or no?

I am totally confused. I thought that lending standards were tightened after the last real estate crash to prevent just this -- people buying houses with no skin in the game. I recognize that this is a veteran but can't veteran's run into financial troubles and default on loans? Who underwrites thi...
by Jack
Mon Jul 28, 2014 1:28 pm
 
Forum: Personal Finance (Not Investing)
Topic: Taking out mortgage with zero down. Smart or no?
Replies: 49
Views: 1896

Re: 36 percent decline in net worth

I've always been a tad skeptical of these "surveys". Nobody ever called me. I even asked my Mom (before she died). Nobody ever called her. Who in heaven's name has any idea of our "net worth", however defined. Taken aback somewhat by the thin statistical back-up, sweeping conclu...
by Jack
Mon Jul 28, 2014 12:40 am
 
Forum: Investing - Theory, News & General
Topic: 36 percent decline in net worth
Replies: 38
Views: 5436

Re: so you're the world's greatest trader

The point is that carried interest does not magically transform short term capital gains into long term capital gains for tax purposes, so hedge fund managers have no special tax advantage in the hypothetical scenario discussed above. Seriously? The entire point of the carried interest loophole is ...
by Jack
Sun Jul 27, 2014 11:40 pm
 
Forum: Investing - Theory, News & General
Topic: so you're the world's greatest trader
Replies: 20
Views: 1475

Re: so you're the world's greatest trader

" Like private equity fund managers, hedge fund managers receive carried interest in the form of an incentive fee or incentive allocation, but the arrangement bestows no special tax advantage if the underlying gains are ordinary income or short-term capital gain. " Boy, those hedge funds ...
by Jack
Sun Jul 27, 2014 10:27 pm
 
Forum: Investing - Theory, News & General
Topic: so you're the world's greatest trader
Replies: 20
Views: 1475

Re: AMZN's magical status

2. Amazon’s assets aren’t liquid; they are books, CDs, DVDs, children’s toys, clothes, consumer electronics, etc.[/list] Maybe they are sitting on 149 billion dollars worth of stuff. Like most large retailers, for example Walmart, their inventory assets are matched by credit liabilities. In other w...
by Jack
Sun Jul 27, 2014 2:55 pm
 
Forum: Investing - Theory, News & General
Topic: AMZN's magical status
Replies: 26
Views: 2725

Re: Bonds beat stocks over the last 15 years

One of the problems with relying only on historical data is that we simply don't have enough independent, long-term periods to make any statistically justified conclusions based only on observations. For example, in one hundred years there are only four independent 25-year periods, so we can't used...
by Jack
Sat Jul 26, 2014 8:10 pm
 
Forum: Investing - Theory, News & General
Topic: Bonds beat stocks over the last 15 years
Replies: 93
Views: 7503

Re: Afraid of Bonds

What if Russian tanks roll into Kiev and the Gasprom pipeline to Western Europe is turned off? Or the Gaza situation turns into a full blown mid-east conflict involving Iran, Egypt and Saudi Arabia? And you believe these events would increase interest rates? How does that work? At the beginning of ...
by Jack
Sat Jul 26, 2014 4:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: Afraid of Bonds
Replies: 28
Views: 2226

Re: Afraid of Bonds

Under what scenario do you expect the stock market to crash but interest rates to go up? When the stock market goes down, the demand for safe assets like Treasury bonds, goes up. That means that interest rates decrease, not increase. I think if interest rates went up quickly due to an unexpected sp...
by Jack
Sat Jul 26, 2014 1:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: Afraid of Bonds
Replies: 28
Views: 2226

Re: SEC Adopts Money Market Fund Reform Rules

This is a regulatory and thus ultimately political tool, not a market measure. And politics as it relates to the economy is mainly about making some people pay for other people (which may be legitimate in some spheres, it's beyond the scope here). The intent of the regulation is to remove money mar...
by Jack
Sat Jul 26, 2014 1:44 pm
 
Forum: Investing - Theory, News & General
Topic: SEC Adopts Money Market Fund Reform Rules
Replies: 52
Views: 2734

Re: Afraid of Bonds

Under what scenario do you expect the stock market to crash but interest rates to go up?

When the stock market goes down, the demand for safe assets like Treasury bonds, goes up. That means that interest rates decrease, not increase.
by Jack
Sat Jul 26, 2014 1:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: Afraid of Bonds
Replies: 28
Views: 2226

Re: Cannot qualify for physician disability insurance.

Why do so many doctors buy disability insurance? Only of tiny percentage of the population buys disability insurance and I'm guessing most of them are doctors. Most everyone else manages to get along without it. It seems to be one of the many financial products designed to get money out of doctors.
by Jack
Sat Jul 05, 2014 7:35 pm
 
Forum: Personal Finance (Not Investing)
Topic: Cannot qualify for physician disability insurance.
Replies: 30
Views: 2354

Re: The Risk of Short-term Bond Funds

[OT comments removed by admin LadyGeek] I can't add anything to this - - - - I just can't. Well I can add something. The Dodd quote is completely made up. He never said that. Period. You should look more closely at your news sources. For instance, going forward, you might assume whoever is the sour...
by Jack
Fri Jul 04, 2014 6:24 pm
 
Forum: Investing - Theory, News & General
Topic: The Risk of Short-term Bond Funds
Replies: 152
Views: 10388

Re: The Risk of Short-term Bond Funds

I'm not saying that short-bonds don't belong in a person's portfolio. Far from it. I'm only pointing out that trying to avoid losses by moving from a intermediate-term duration fund to an short-duration fund hasn't paid off over the past three- five- years. This seems like simply an observation of ...
by Jack
Thu Jul 03, 2014 3:08 pm
 
Forum: Investing - Theory, News & General
Topic: The Risk of Short-term Bond Funds
Replies: 152
Views: 10388

Re: Pay down (not off) mortgage?

You are paying a lot for a 30-year option that you plan to never use. Consider a 5 year adjustable rate mortgage with zero out-of-pocket fees. You should be able to find something like 2.75% or better.
by Jack
Wed Jul 02, 2014 9:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: Pay down (not off) mortgage?
Replies: 53
Views: 4832

Re: Trick question for new investors.

First why do you have to cash out your 401k? You not have a emergancy fund, or save enough for your mortgage and car payments. Secound why your payments for the house and car in the market? You dont have a checking account or what? Third you should be putting more money in to the market for when th...
by Jack
Wed Jul 02, 2014 12:19 am
 
Forum: Investing - Theory, News & General
Topic: Trick question for new investors.
Replies: 25
Views: 2070

Re: Trick question for new investors.

Most new investors will choose A, not knowing that is not the right answer ... The "right" answer? How so? Let's say it's 2008, I'm a new investor who has recently graduated to a great job and been contributing to my 401k. I just bought a house and the crash occurs. I have to cash out the...
by Jack
Tue Jul 01, 2014 9:36 pm
 
Forum: Investing - Theory, News & General
Topic: Trick question for new investors.
Replies: 25
Views: 2070

Re: aaaand its gone

Many people lost it all in the last decade when they were unlucky enough to buy a house at the wrong time and then lose their jobs.

In other words -- leverage.
by Jack
Sat Jun 28, 2014 10:57 pm
 
Forum: Investing - Theory, News & General
Topic: aaaand its gone
Replies: 22
Views: 4079

Re: Paperless Statements (bank checking acct)

If electronic documents are good enough for the IRS, Which is why the IRS uses emails rather than paper memos for internal documents. Electronic records such as emails can easily be stored and retrieved at any time. :) Email was never intended nor is it legally required to be a permanent store of i...
by Jack
Sat Jun 28, 2014 8:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: Paperless Statements (bank checking acct)
Replies: 64
Views: 3057

Re: burning 1 lb is how many calories?

hmm... the question simply was why do you need to burn 3500Cal to lose 1 lb? Since if you lost 0.5lb fat, you should lose 0.5lb water (50% body weight is water.) Stop right there. That statement is false. The percentage of fat in the body can vary from about 5% in the very lean to over 40% for the ...
by Jack
Sat Jun 28, 2014 8:09 pm
 
Forum: Personal Consumer Issues
Topic: burning 1 lb is how many calories?
Replies: 69
Views: 5601

Re: Directv

Is there a way to get sports without cable/satellite? If you watch a lot of sports, cable and satellite are probably one of the best deals around. That is because the sports channels are the most expensive for a provider to carry yet only a minority of viewers watch them. This means that sports vie...
by Jack
Wed Jun 25, 2014 6:57 pm
 
Forum: Personal Consumer Issues
Topic: Directv
Replies: 36
Views: 2425

Re: Is Medical School Worth it Financially?

I hear about medical students coming with loans of >500k at 6.8%. Why would anyone willingly incur $500K in debt going to med school and then complain about it? It that any different than the person who runs up a $200K tab on an art history degree at Harvard and then complains about it? Running up ...
by Jack
Tue Jun 24, 2014 9:10 pm
 
Forum: Personal Finance (Not Investing)
Topic: Is Medical School Worth it Financially?
Replies: 66
Views: 5042

Re: Best Battery Charging Strategy

Lifespan (a more accurate term is capacity span) has been measured to be 50% higher if you discharge to 50% capacity and slightly better down to about 40%, where it starts to get worse again. For example, a 0% to 100% charge may get 500 cycles, a 90% to 100% charge may get 4750 charges, but a 50% -...
by Jack
Sun Jun 22, 2014 12:22 pm
 
Forum: Personal Consumer Issues
Topic: Best Battery Charging Strategy
Replies: 20
Views: 1796

Re: Best Battery Charging Strategy

Typically, if your battery is rated for 300 to 400 discharge cycles, it means that after that number of cycles, the battery will be reduced to 80% of its original capacity. So your battery will work for hundreds of more cycles, but have reduced battery capacity. Charging from 0% to 100% counts as on...
by Jack
Sat Jun 21, 2014 3:55 pm
 
Forum: Personal Consumer Issues
Topic: Best Battery Charging Strategy
Replies: 20
Views: 1796

Re: Best Battery Charging Strategy

Finally, a Lithium ION battery's useful life is highly susceptible to the number of charge cycles and being continually topped off. So you should not leave them in the charger nor should you charge them every day (unless your phone lasts less than two days). You should determine how long your batte...
by Jack
Sat Jun 21, 2014 12:51 pm
 
Forum: Personal Consumer Issues
Topic: Best Battery Charging Strategy
Replies: 20
Views: 1796

Re: Best Battery Charging Strategy

Laptops have more than a battery. They have a microprocessor in front of the battery. It controls the charging. Is this true for an iPad also? Almost all electronic devices with rechargeable lithium batteries use "smart" batteries. The smart controller on the battery counts the number of ...
by Jack
Sat Jun 21, 2014 12:11 pm
 
Forum: Personal Consumer Issues
Topic: Best Battery Charging Strategy
Replies: 20
Views: 1796

Re: New Portfolio: what to do with 2.5M to 5.5M?

Am I allowed to mention how tax-loss harvesting also helps prevent one from paying cap gains taxes when rebalancing? What are these capital losses you speak of? Anyone who has been invested for a long time has very little capital losses, even in 2009. I can only assume that your tinkering has you r...
by Jack
Fri Jun 20, 2014 7:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: New Portfolio: what to do with 2.5M to 5.5M?
Replies: 38
Views: 4378

Re: New Portfolio: what to do with 2.5M to 5.5M?

Slice and dice for a very large taxable account (relative to future contributions) is tax inefficient. You need to periodically sell positions to rebalance your portfolio which incurs unnecessary capital gains taxes. I have not found the above to be a true statement. One can take distributions in c...
by Jack
Fri Jun 20, 2014 6:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: New Portfolio: what to do with 2.5M to 5.5M?
Replies: 38
Views: 4378

Re: New Portfolio: what to do with 2.5M to 5.5M?

Slice and dice for a very large taxable account (relative to future contributions) is tax inefficient. You need to periodically sell positions to rebalance your portfolio which incurs unnecessary capital gains taxes. Use Total Domestic and Total International funds that are always automatically bala...
by Jack
Fri Jun 20, 2014 6:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: New Portfolio: what to do with 2.5M to 5.5M?
Replies: 38
Views: 4378

Re: Argentine Certificate of Deposit

Valuethinker wrote:Argentina is seriously up the creek. It's all very sad.

Worse than the misery in Spain and Greece? I don't think so -- not even close.
by Jack
Thu Jun 19, 2014 6:18 pm
 
Forum: Investing - Theory, News & General
Topic: Argentine Certificate of Deposit
Replies: 19
Views: 892

Re: Argentine Certificate of Deposit

Argentina was in a mess leading up to the default in 2001, with high unemployment, an economic recession and food riots. Since the default, the economy has rebounded greatly, growing faster than Brazil and faster than Chile. Compare Argentina's rapid recovery to the years of misery (and still counti...
by Jack
Thu Jun 19, 2014 5:16 pm
 
Forum: Investing - Theory, News & General
Topic: Argentine Certificate of Deposit
Replies: 19
Views: 892

Re: Argentine Certificate of Deposit

I'm not up enough on the latest in Argentina to give any advice or recommendations, but a 29% interest rate suggests high risk to me. Or high inflation. For example, CD rates in the U.S. were as high as 18% in the early 1980s. This reflected high inflation, not high risk. If you are investing and k...
by Jack
Thu Jun 19, 2014 11:46 am
 
Forum: Investing - Theory, News & General
Topic: Argentine Certificate of Deposit
Replies: 19
Views: 892

Re: Grand Canyon

I'm leaving for the Canyon tomorrow. I'm spending the next three weeks rowing an 18-foot raft down the river. I can see the Desert View Watchtower from the river. Get out your binoculars and you might see me.
by Jack
Fri May 23, 2014 12:32 am
 
Forum: Personal Consumer Issues
Topic: Grand Canyon
Replies: 59
Views: 4152

Re: New PC - Buy Office or use free alternatives

I used Thunderbird for several years and recently went back to Outlook. I really like Outlook, largely because of the Calendar options. The ability to share, sync, color co-ordinate, link, and attach between calendar and e-mail, make tentative appointments and so forth is just really useful to me. ...
by Jack
Tue May 20, 2014 12:50 pm
 
Forum: Personal Consumer Issues
Topic: New PC - Buy Office or use free alternatives
Replies: 29
Views: 2041

Re: A Simple Demonstration of Market Inefficiency

What you are seeing in that chart is an artifact of the fact it only displays the closing price at which the last share of the day sold, not intra-day prices. BRK.A only trades a few hundred shares a day, only about one share a minute on the average day. On the other hand, BRK.B trades several milli...
by Jack
Sat May 17, 2014 12:27 am
 
Forum: Investing - Theory, News & General
Topic: A Simple Demonstration of Market Inefficiency
Replies: 18
Views: 2391

Re: Do you own / have you owned a Chevrolet Volt?

This may not be a responsive answer, but after reading all the horrendous news about what appears to be a deliberate cover up of serious ignition switch defect for almost a decade resulting in death and injury of many innocent customers I for one will never trust that company again and certainly no...
by Jack
Fri May 16, 2014 2:06 pm
 
Forum: Personal Consumer Issues
Topic: Do you own / have you owned a Chevrolet Volt?
Replies: 39
Views: 4462

Re: Where does Vanguard stand on exorbitant CEO pay?

Unless someone is cheating or stealing, let the market do its work. There is no real market. CEOs put their friends on the board or serve on each others boards. They pay board members $200,000 a year to attend a couple of day long meetings a year to rubber stamp the CEO's decisions. Who wouldn't ta...
by Jack
Thu May 15, 2014 3:44 pm
 
Forum: Personal Finance (Not Investing)
Topic: Where does Vanguard stand on exorbitant CEO pay?
Replies: 14
Views: 1386

Re: IBD's 20 Rules for Investment Success

Keep in mind, this is the same Investors Business Daily that thought Stephen Hawking was born and raised in the U.S. because he didn't have a British accent. They aren't exactly the sharpest knife in the drawer.
by Jack
Wed May 14, 2014 3:28 pm
 
Forum: Investing - Theory, News & General
Topic: IBD's 20 Rules for Investment Success
Replies: 27
Views: 5053

Re: Thoughts on prenups

This actually works as an incentive for women to divorce men. Surely you realize that your argument makes no logical sense. Why would women have an incentive to decrease their wealth and income by half, the same as men who get the other half? Financially, divorced women, especially with children, a...
by Jack
Tue May 13, 2014 6:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: Thoughts on prenups
Replies: 99
Views: 4182

Re: ACA/ObamaCare Problems - HSA-Compatible Plans

I have no dog in this fight as I am retired from practicing medicine. Whatever shakes out, I only hope I do not hear too many more horror stories like OP has (and I have heard from friends and relatives) and pray that too many people do not die as a result of lack of access. The ACA is not causing ...
by Jack
Tue May 13, 2014 12:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: ACA/ObamaCare Problems - HSA-Compatible Plans
Replies: 18
Views: 1276

Re: ACA/ObamaCare Problems - HSA-Compatible Plans

The ACA is not responsible for setting the requirements for insurance plan networks or premium prices. You act like networks and premiums are established in a vacuum. Although not directly responsible, the ACA clearly impacts networks and pricing--not always in good ways. Just as before the ACA, al...
by Jack
Tue May 13, 2014 9:45 am
 
Forum: Personal Finance (Not Investing)
Topic: ACA/ObamaCare Problems - HSA-Compatible Plans
Replies: 18
Views: 1276

Re: ACA/ObamaCare Problems - HSA-Compatible Plans

The ACA is not responsible for setting the requirements for insurance plan networks or premium prices. That is under the control of your state insurance commissioner. The federal government only provides the exchanges. The insurance companies and the plans offered on the exchange in your state are r...
by Jack
Tue May 13, 2014 2:15 am
 
Forum: Personal Finance (Not Investing)
Topic: ACA/ObamaCare Problems - HSA-Compatible Plans
Replies: 18
Views: 1276

Re: Medicaid Qualification with a variable income.

You can sign up for health insurance and Medicaid any time. You can sign up for Medicaid at any time that you qualify for Medicaid. However no insurer outside the exchange is likely to sell you a policy outside of the enrollment period without a qualifying event because they cannot underwrite any a...
by Jack
Mon May 12, 2014 2:36 am
 
Forum: Personal Finance (Not Investing)
Topic: Medicaid Qualification with a variable income.
Replies: 12
Views: 885

Re: Federal reserve balance sheet may take 5-8 years to shri

This paper at the New York Fed explains how paying interest on reserves enables the Fed to create and uncreate reserves independently of raising and lowering its target for the federal funds interest rate. Divorcing Money from Monetary Policy Ron It's amusing to read that Fed paper which came out r...
by Jack
Sun May 11, 2014 2:44 am
 
Forum: Investing - Theory, News & General
Topic: Federal reserve balance sheet may take 5-8 years to shrink
Replies: 41
Views: 4091

Re: Medicaid Qualification with a variable income.

It's also the right thing to do, regardless of legal sanction. The cost-sharing subsidies are for low income citizens and legal residents. If one of us needs them, take them. If that person no longer needs them, give them up. It's what's legal and what's right. ... The advice to keep one's income b...
by Jack
Sat May 10, 2014 10:27 pm
 
Forum: Personal Finance (Not Investing)
Topic: Medicaid Qualification with a variable income.
Replies: 12
Views: 885

Re: CAPE:cyclically adjusted price earnings ratio

steve_14 wrote:
Jack wrote:If in 1996 you sold all of Total Stock Market and bought Total Bond Market, you would have been up 7% in 2002 and 25% in 2009


Nope, sorry, a decade is 10 years, not 6 or 13 or 187.

He said 10 years "at this CAPE." The CAPE dramatically dropped in 2002 and 2009.
by Jack
Fri May 09, 2014 11:41 pm
 
Forum: Investing - Theory, News & General
Topic: CAPE:cyclically adjusted price earnings ratio
Replies: 12
Views: 1823

Re: Efficient market theory - not

Nobody, pretty much, believes the market is entirely and perfectly efficient. Minor glitches occur. I would say that 2008 demonstrated more than a minor glitch in markets. It was a major glitch in the economy for sure. EMH does not however predict or mean there will be no market crashes. So not rea...
by Jack
Fri May 09, 2014 8:52 pm
 
Forum: Investing - Theory, News & General
Topic: Efficient market theory - not
Replies: 13
Views: 1382

Re: Efficient market theory - not

Rodc wrote:Nobody, pretty much, believes the market is entirely and perfectly efficient. Minor glitches occur.

I would say that 2008 demonstrated more than a minor glitch in markets.
by Jack
Fri May 09, 2014 7:55 pm
 
Forum: Investing - Theory, News & General
Topic: Efficient market theory - not
Replies: 13
Views: 1382

Re: CAPE:cyclically adjusted price earnings ratio

Yale professor Robert Shiller was one of a relative handful of stock-market observers who warned that the bull market of the late 1990s was a colossal bubble in the making. To be more specific, he stated in Jan, 1996 that: "it appears that long run investors should stay out of the market for t...
by Jack
Fri May 09, 2014 7:53 pm
 
Forum: Investing - Theory, News & General
Topic: CAPE:cyclically adjusted price earnings ratio
Replies: 12
Views: 1823
Next

Return to advanced search