Search found 313 matches

by JimInIllinois
Sat Jul 18, 2015 8:01 pm
Forum: Investing - Theory, News & General
Topic: The "No Bonds" portfolio
Replies: 80
Views: 11539

Re: The "No Bonds" portfolio

This guy is either being disingenuous or doesn't know how bonds work: With interest rates at record lows it is only logical to assume that interest rates will move higher sometime in the not too distant future. Consequently, I believe that bonds, as an asset class, should temporarily at least be av...
by JimInIllinois
Sat Jul 18, 2015 11:15 am
Forum: Investing - Theory, News & General
Topic: The "No Bonds" portfolio
Replies: 80
Views: 11539

Re: The "No Bonds" portfolio

This guy is either being disingenuous or doesn't know how bonds work: With interest rates at record lows it is only logical to assume that interest rates will move higher sometime in the not too distant future. Consequently, I believe that bonds, as an asset class, should temporarily at least be av...
by JimInIllinois
Sat Jun 06, 2015 10:12 am
Forum: Personal Finance (Not Investing)
Topic: New 12" Macbook: Which one to buy?
Replies: 10
Views: 1429

Re: New 12" Macbook: Which one to buy?

I love my 13" Air.
by JimInIllinois
Sat May 30, 2015 11:01 pm
Forum: Investing - Help with Personal Investments
Topic: Upcoming Economic Bubble
Replies: 45
Views: 6777

Re: Upcoming Economic Bubble

Congratulations on getting a stable job. Your $9500 is a good emergency fund, so either keep it in a bank or at most invest half of it in a bond fund. Set up 10% of each paycheck (at least - more would be better) to automatically buy into whatever 100% stock index fund portfolio you like. Then get o...
by JimInIllinois
Fri May 29, 2015 12:34 am
Forum: Personal Finance (Not Investing)
Topic: Long term capital gains tax question
Replies: 7
Views: 756

Re: Long term capital gains tax question

By default your sale will use FIFO (first in first out) accounting, so the oldest shares will be sold first, resulting in a long-term gain (or loss). See http://www.bogleheads.org/wiki/Cost_basis_methods
by JimInIllinois
Tue May 12, 2015 9:21 am
Forum: Investing - Help with Personal Investments
Topic: Opinions on Fidelity Freedom Index 2020 fund?
Replies: 5
Views: 515

Re: Opinions on Fidelity Freedom Index 2020 fund?

Consider the Vanguard Life Strategy funds. $3000 minimum and fixed stock/bond ratios:
https://investor.vanguard.com/mutual-fu ... trategy/#/
by JimInIllinois
Tue May 12, 2015 9:09 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice: Especially with TIAA Real Estate
Replies: 21
Views: 1198

Re: Portfolio Advice: Especially with TIAA Real Estate

Would Trea fit your definition as something that mirrors housing prices? Depending on the purchase price of the house, my wife and I could use the $10,000 withdrawal from a roth account towards a downpayment. TREA is commercial real estate, not residential, but it's the closest thing I can think of...
by JimInIllinois
Mon May 11, 2015 10:56 pm
Forum: Investing - Help with Personal Investments
Topic: Opinions on Fidelity Freedom Index 2020 fund?
Replies: 5
Views: 515

Re: Opinions on Fidelity Freedom Index 2020 fund?

This fund has 7% in a money market fund earning 0.1% interest, which is a waste given your time horizon. Since the fund assumes you are retiring soon it will be even more conservative in the future. There are funds that maintain a constant 60/40 ratio if that is what you want.
by JimInIllinois
Mon May 11, 2015 10:43 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice: Especially with TIAA Real Estate
Replies: 21
Views: 1198

Re: Portfolio Advice: Especially with TIAA Real Estate

The defined benefit pension cash value should be excluded from your asset allocation calculation unless you are planning to cash it in during the next market crash to buy stocks. Treat the pension (and social security) as reducing your income needs during retirement. The only funds I would consider ...
by JimInIllinois
Sun May 10, 2015 11:23 pm
Forum: Personal Finance (Not Investing)
Topic: Philosophies of frugality.
Replies: 64
Views: 7506

Re: Philosophies of frugality.

Why experience is better than things? I see so many saying that here. We don't like to travel but we like nice things (house, cars, shoes, clothes). Why spending money on experience such as travel is better the others? The specific claim made by researchers is that buying novel, memorable experienc...
by JimInIllinois
Sun Apr 19, 2015 10:47 pm
Forum: Investing - Theory, News & General
Topic: new i-bond rate?
Replies: 28
Views: 5159

Re: new i-bond rate?

John3754 wrote:
JimInIllinois wrote:The real mystery is the fixed rate on i-bonds sold starting May 1.


If it's anything other than 0% I'll be surprised.


If it's 0% there would be no reason to buy before November.
by JimInIllinois
Sun Apr 19, 2015 10:28 pm
Forum: Investing - Theory, News & General
Topic: new i-bond rate?
Replies: 28
Views: 5159

Re: new i-bond rate?

The real mystery is the fixed rate on i-bonds sold starting May 1. Anything less than 1.7% fixed will have 0% return for the first six months. What fixed rate would be worth buying anyway? It depends on your anticipated holding period.
by JimInIllinois
Sun Feb 08, 2015 11:02 pm
Forum: Investing - Help with Personal Investments
Topic: Help on TIAA CREF vs T ROWE vs FIDELITY
Replies: 8
Views: 897

Re: Help on TIAA CREF vs T ROWE vs FIDELITY

I'll second TIAA Traditional and Real Estate Accounts. For stocks and bonds, however, if you have access to the Fidelity Spartan funds they are comparable to Vanguard in expenses.
by JimInIllinois
Sat Jan 03, 2015 11:36 am
Forum: Investing - Theory, News & General
Topic: How do taxes effect the risk-adjusted return of equities?
Replies: 2
Views: 273

Re: How do taxes effect the risk-adjusted return of equities

https://www.bogleheads.org/wiki/Tax-adjusted_asset_allocation discusses some of what you are asking, but if your returns don't effect your tax rate then it is like the government owns a fraction of your account equal to your marginal tax rate. Since this reduces risk and return by the same factor t...
by JimInIllinois
Sat Jan 03, 2015 11:29 am
Forum: Investing - Theory, News & General
Topic: How do taxes effect the risk-adjusted return of equities?
Replies: 2
Views: 273

Re: How do taxes effect the risk-adjusted return of equities

I have considered the idea that the riskiest assets should be held in tax-deferred accounts because the uncertain return of those assets will be somewhat damped by progressive taxation on withdrawal. If stocks do well you shouldn't mind paying a higher tax rate but if they do poorly your marginal ra...
by JimInIllinois
Wed Dec 03, 2014 10:11 pm
Forum: Investing - Help with Personal Investments
Topic: Assistance with new TIAA-CREF options
Replies: 9
Views: 1068

Re: Assistance with new TIAA-CREF options

The TIAA Real Estate account is a unique offering, offering the returns of commercial real estate without the short-term volatility of REITs. (It did lose substantial value five years ago, but much more gradually than REITs.) I like it. Some people don't trust it.
by JimInIllinois
Sat Jun 28, 2014 11:26 pm
Forum: Personal Consumer Issues
Topic: Kindle - Which one to buy?
Replies: 36
Views: 2346

Re: Kindle - Which one to buy?

The wifi PaperWhite. Very light to hold and easy to read in full sun or total darkness.
by JimInIllinois
Sat Jun 28, 2014 8:31 pm
Forum: Investing - Theory, News & General
Topic: Managing AA Targets between Taxable and Tax-Advantaged
Replies: 11
Views: 1128

Re: Managing AA Targets between Taxable and Tax-Advantaged

I would ask how contingent your early retirement is on the performance of the stock market over the next few years. If you are dead set on retirement in five years then you may want a taxable liability-matching portfolio locked in now. On the other hand, if an additional five years of market exposur...
by JimInIllinois
Fri Jun 20, 2014 8:51 am
Forum: Investing - Theory, News & General
Topic: Location does matter when measuring asset allocation
Replies: 45
Views: 3291

Re: Location does matter when measuring asset allocation

Jim, have you read this page on the wiki? http://www.bogleheads.org/wiki/Tax-adjusted_asset_allocation Somehow I missed that last night. :oops: The actual adjustment described in the wiki is 100% correct, including reducing taxable accounts by the marginal tax rate. However, the top-line summary th...
by JimInIllinois
Fri Jun 20, 2014 7:56 am
Forum: Investing - Theory, News & General
Topic: Location does matter when measuring asset allocation
Replies: 45
Views: 3291

Re: Location does matter when measuring asset allocation

Hmm battle of the -steins. I think Bernstein's argument is wrong, as you point out. What you have is a 59:41 portfolio - are you saying this isn't correct? 59:41 is the right answer, but Reichenstein's reasoning doesn't consider fluctuations. Asset allocation is about controlling the response of th...
by JimInIllinois
Thu Jun 19, 2014 11:57 pm
Forum: Investing - Theory, News & General
Topic: Location does matter when measuring asset allocation
Replies: 45
Views: 3291

Location does matter when measuring asset allocation

I'm working my way through William Bernstein's Rational Expectations and just got to the "Location, Location, Location" section where he very briefly dismisses the concept that you should adjust tax deferred and taxable account balances downward by their future tax exposure relative to Rot...
by JimInIllinois
Mon Mar 03, 2014 9:27 pm
Forum: Forum Issues and Administration
Topic: Bogleheads.org Home Page Updated
Replies: 230
Views: 69919

Re: Bogleheads.org Home Page Updated

This is looking better, or at least more familiar. I'd like to thank Lady Geek for her patience and lack of hitting people.
I'd like to see what it looks like centered sometime.
by JimInIllinois
Mon Mar 03, 2014 1:25 am
Forum: Forum Issues and Administration
Topic: Bogleheads.org Home Page Updated
Replies: 230
Views: 69919

Re: Bogleheads.org Home Page Updated

I don't know what people are talking about when they say there is white space on the right side. I don't see any on my iPod touch. Do you really see a lot of white space on your smart phones? When I turn my touch from portrait to landscape, the font size increases so that it looks as if the proport...
by JimInIllinois
Mon Mar 03, 2014 12:57 am
Forum: Forum Issues and Administration
Topic: Bogleheads.org Home Page Updated
Replies: 230
Views: 69919

Re: Bogleheads.org Home Page Updated

tfb wrote:It's better than before. I'm afraid new visitors still can't figure out what's going on. Compare with the home page of Financial Wisdom Forum:

http://www.financialwisdomforum.org/

Mission statement, 2 major components: wiki + forum

Very clear and clean.


And, please note, centered.
by JimInIllinois
Mon Mar 03, 2014 12:56 am
Forum: Forum Issues and Administration
Topic: Bogleheads.org Home Page Updated
Replies: 230
Views: 69919

Re: Bogleheads.org Home Page Updated

Layout thoughts... For those that run at a higher-res the home page has always been shoved to the left. However this is more extreme. Pulling up the old site in the wayback machine and comparing I notice that the new layout is, aside from the header, roughly an inch skinnier (will differ on differe...
by JimInIllinois
Thu Jan 23, 2014 8:13 am
Forum: Investing - Help with Personal Investments
Topic: Hypothetical Reallocation Strategy
Replies: 4
Views: 413

Re: Hypothetical Reallocation Strategy

It is important to know what her capital gain would be if she sold the VGHAX.
by JimInIllinois
Tue Jan 21, 2014 11:33 pm
Forum: Personal Consumer Issues
Topic: Free Food
Replies: 21
Views: 2618

Re: Free Food

I just printed a coupon for a FREE burger at Ruby Tuesday - says up to $9 value. I did that a few years ago - no catch. I did leave a cash tip, though. Here's the catch: http://eatthis.menshealth.com/content/20-worst-foods?article=4&page=1 http://eatthis.menshealth.com/content/20-worst-foods-wo...
by JimInIllinois
Thu Jan 16, 2014 9:20 pm
Forum: Investing - Help with Personal Investments
Topic: Pay capital gains to lower fund costs?
Replies: 9
Views: 690

Re: Pay capital gains to lower fund costs?

This is what I would suggest for your taxable accounts: 1) Set all dividends and capital gains to be distributed to you rather than reinvested. 2) Delay taking social security until age 69 to maximize your guaranteed income for life and minimize taxable income while you... 3) Sell enough of your mos...
by JimInIllinois
Sat Jan 11, 2014 10:21 am
Forum: Investing - Help with Personal Investments
Topic: Bond allocation rebalancing
Replies: 14
Views: 1381

Re: Bond allocation rebalancing

My real question is “does the bond portion of my portfolio need to be more diversified? If so, how do I go about it without overly increasing the proportion of bonds? No. The purpose of diversification is to reduce risk and your portfolio has zero risk. You are earning what is currently an above ma...
by JimInIllinois
Sun Jan 05, 2014 2:52 pm
Forum: Investing - Help with Personal Investments
Topic: Is a 457b a good option after maxed out 403b and Roth IRA?
Replies: 26
Views: 1748

Re: Is a 457b a good option after maxed out 403b and Roth IR

I just saw that your 457 choices are TIAA-CREF or Fidelity. The Fidelity "Spartan" index funds are OK, almost as good as Vanguard in most cases. TIAA-CREF is well regarded as an institution, and you may have access to two unique vehicles: the Traditional Account, which is currently paying ...
by JimInIllinois
Sun Jan 05, 2014 2:46 pm
Forum: Investing - Help with Personal Investments
Topic: Is a 457b a good option after maxed out 403b and Roth IRA?
Replies: 26
Views: 1748

Re: Is a 457b a good option after maxed out 403b and Roth IR

It depends on the investment choices and your chances of needing to access the money before age 59 1/2 due to job loss or retirement. I use the stable value fund in my 457 plan as for my "emergency fund" in case of unemployment (and have other liquid funds for other emergencies).
by JimInIllinois
Mon Dec 30, 2013 11:54 pm
Forum: Personal Consumer Issues
Topic: Bed sheets like they used to be?
Replies: 41
Views: 6019

Re: Bed sheets like they used to be?

The weave and quality of cotton are more important than thread count. Percale weave is more durable than sateen. Long-staple cotton is more durable than short staple. Many of the reported counts are multiplied by the number of plies in each thread, so a 300-thread-count x 4-ply becomes "1200 co...
by JimInIllinois
Fri Sep 27, 2013 1:51 am
Forum: Investing - Help with Personal Investments
Topic: New Poster. Talk me out of 100%stock allocation
Replies: 50
Views: 7567

Re: New Poster. Talk me out of 100%stock allocation

The fact that stocks have outperformed bonds in the past is no guarantee that they will in the future. The risk is real, and while you can afford to take it you have no need to. Also, you don't give up that much by having a diversified and rebalanced portfolio. See, e.g., http://www.cbsnews.com/8301...
by JimInIllinois
Sat Sep 21, 2013 4:41 pm
Forum: Personal Finance (Not Investing)
Topic: Training & Education path to becoming a Sys Admin?
Replies: 7
Views: 891

Re: Training & Education path to becoming a Sys Admin?

I'd recommend starting with slashdot.org. You could actually ask this question there (or check if someone has already asked something similar already).
Another good site is theregister.com.
by JimInIllinois
Tue Sep 10, 2013 11:45 pm
Forum: Investing - Theory, News & General
Topic: Reverse Logic: Bonds in Taxable, Stocks in Tax-Sheltered
Replies: 25
Views: 2166

Re: Reverse Logic: Bonds in Taxable, Stocks in Tax-Sheltered

Also remember that not all investment income is taxed the same. Interest from bonds and withdrawals from retirement accounts are both taxed at ordinary income rates, so a bond is always more tax efficient in a retirement account than not. Dividends and capital gains from stocks in a taxable account ...
by JimInIllinois
Tue Sep 10, 2013 11:31 pm
Forum: Investing - Theory, News & General
Topic: Reverse Logic: Bonds in Taxable, Stocks in Tax-Sheltered
Replies: 25
Views: 2166

Re: Reverse Logic: Bonds in Taxable, Stocks in Tax-Sheltered

The standard advice is that tax-advantaged space should be filled before (retirement) investing in taxable accounts. It is only once tax-advantaged space is full that the question arises of which assets in the target asset allocation should be placed in the taxable account. Certain assets, like TIPS...
by JimInIllinois
Fri Jul 05, 2013 12:11 am
Forum: Personal Finance (Not Investing)
Topic: Joining a religious order with a poverty vow
Replies: 62
Views: 3244

Re: Joining a religious order with a poverty vow

Legitimate religious orders have a multi-year contemplation period before final vows.
by JimInIllinois
Sat May 11, 2013 2:25 am
Forum: Investing - Theory, News & General
Topic: Time to rethink placing bonds in tax advantaged?
Replies: 15
Views: 1891

Re: Time to rethink placing bonds in tax advantaged?

There seems to be a life-cycle component to asset location that I do not recall seeing discussed. When I retire I would prefer to have stocks in my taxable account for the usual reasons. In my peak earning years immediately prior to retirement I will be shifting my asset allocation to be more conser...
by JimInIllinois
Wed May 01, 2013 6:37 am
Forum: Personal Consumer Issues
Topic: wedding gift - tacky or not ....
Replies: 57
Views: 3367

Re: wedding gift - tacky or not ....

Um, no. You can figure out pretty closely what was paid for the gold coin on the day it was purchased. It's as if you wrote a check to the couple on that day. It's that impersonal. It's a far cry from making an effort to search for a unique, special gift that would be particularly liked or needed b...
by JimInIllinois
Tue Mar 12, 2013 10:18 pm
Forum: Personal Consumer Issues
Topic: What Type Of Wallet?
Replies: 90
Views: 9804

Re: What Type Of Wallet Do You Prefer?

Second http://www.all-ett.com/original-wallet/ I've had the original nylon for years. I actually bought a replacement when it developed some holes in the corners, but the "rip-stop" nylon is true to its name and they haven't gotten any bigger so the replacement is still sitting on the shel...
by JimInIllinois
Mon Feb 18, 2013 2:11 pm
Forum: Personal Consumer Issues
Topic: How much to spend on a new washer & dryer
Replies: 66
Views: 11272

Re: How much to spend on a new washer & dryer

Based on a Consumer Reports review I bought their top recommendation: a Maytag HE washer for over $900. Two years later the control panel and a sensor broke. Replacement cost was $400. The repairman said there was no way of knowing if these replacement parts would last any longer than the originals...
by JimInIllinois
Mon Feb 11, 2013 7:45 pm
Forum: Investing - Theory, News & General
Topic: Fund placement to hedge risk rather than reduce taxes
Replies: 8
Views: 390

Re: Fund placement to hedge risk rather than reduce taxes

The problem is you don't know the answer so you have to decide on your allocation and location before you know the fact. The more volatile the asset the more important it is to know how much of it you own precisely. If, through progressive taxation, the fraction of an asset that I own decreases as ...
by JimInIllinois
Mon Feb 11, 2013 7:17 pm
Forum: Investing - Theory, News & General
Topic: Fund placement to hedge risk rather than reduce taxes
Replies: 8
Views: 390

Re: Fund placement to hedge risk rather than reduce taxes

You can rebalance between accounts at any time. Seems like you are looking at each account individually, which is not optimal. Unless I'm missing something, this doesn't offer any real benefits over more traditional tax-efficient investing. Sorry for not being clear. Within an overall asset allocat...
by JimInIllinois
Mon Feb 11, 2013 6:43 pm
Forum: Investing - Theory, News & General
Topic: Fund placement to hedge risk rather than reduce taxes
Replies: 8
Views: 390

Re: Fund placement to hedge risk rather than reduce taxes

Also with tax DEFERRED accounts you don't own the whole account, the government owns a portion. It's not they hedge the risks, it's that you don't own 100% of the asset in the first place and that should be accounted for in your investment plan, something many if not most investors fail to do. Larr...
by JimInIllinois
Mon Feb 11, 2013 12:59 pm
Forum: Investing - Theory, News & General
Topic: Fund placement to hedge risk rather than reduce taxes
Replies: 8
Views: 390

Fund placement to hedge risk rather than reduce taxes

Looking at Principles of Tax-Efficient Fund Placement I am wondering if the recommendation would be different if the risks of different asset classes were considered. Let us say I want to maximize my after-tax income in retirement if my investments do poorly, and that if my investments do well I wil...
by JimInIllinois
Mon Feb 11, 2013 10:59 am
Forum: Investing - Theory, News & General
Topic: Mean Reversion of Equity Prices: Less than Meets the Eye?
Replies: 38
Views: 2831

Re: Mean Reversion of Equity Prices: Less than Meets the Ey

tadamsmar wrote:Should their be a role for projected earnings and risks in stock price setting?

Of course. The only role that past earnings play is to help predict future earnings.
by JimInIllinois
Mon Feb 11, 2013 10:55 am
Forum: Investing - Theory, News & General
Topic: Mean Reversion of Equity Prices: Less than Meets the Eye?
Replies: 38
Views: 2831

Re: Mean Reversion of Equity Prices: Less than Meets the Ey

The good and bad performers of the past all revert to the average future performance of their peers. This is not based on using some past mean as a predictor. It say forget about the past relative means as a tool to predict the future relative means. Random walks evidence this type of RTM. Exactly....
by JimInIllinois
Sun Feb 10, 2013 2:06 pm
Forum: Investing - Theory, News & General
Topic: Retire earlier or wealthier?
Replies: 25
Views: 3571

Re: Retire earlier or wealthier?

If you were 55 and your savings increased 50% overnight, would you... It surely depends. ⋅ Does 50% increase in savings mean that much because you were close to target/goal to begin with?... or it doesn't. ⋅ Unfortunately, many 55yo are not that close to meeting savings goals/ob...
by JimInIllinois
Sun Feb 10, 2013 12:13 pm
Forum: Investing - Theory, News & General
Topic: Retire earlier or wealthier?
Replies: 25
Views: 3571

Re: Retire earlier or wealthier?

If you were 55 and your savings increased 50% overnight, would you... It surely depends. ⋅ Does 50% increase in savings mean that much because you were close to target/goal to begin with?... or it doesn't. ⋅ Unfortunately, many 55yo are not that close to meeting savings goals/ob...
by JimInIllinois
Sat Feb 09, 2013 6:34 pm
Forum: Investing - Theory, News & General
Topic: Retire earlier or wealthier?
Replies: 25
Views: 3571

Retire earlier or wealthier?

I'm wondering if people save more so they can be retire earlier or have a higher standard of living in retirement.

Go to advanced search