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Re: Purpose of VTIAX?

There have been periods when international has under performed domestic, and periods when it has outperformed domestic. That's the point, diversification, the two funds hold a completely different portfolio of stocks so one would not expect them to perform exactly the same at any particular point in...
by John3754
Wed Aug 20, 2014 3:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: Purpose of VTIAX?
Replies: 5
Views: 430

Re: [live off dividends?] How the rich stay/get richer??

As an early retiree the last 6 years, I have been living off dividends. Most of my bond fund dividends are used to pay my bills but excess bond fund dividends get reinvested. My stock fund dividends get reinvested as do any cap gain distributions from all my funds. I also have unrealized cap gains ...
by John3754
Wed Aug 20, 2014 12:18 pm
 
Forum: Investing - Theory, News & General
Topic: [live off dividends?] How the rich stay/get richer??
Replies: 62
Views: 4668

Re: [live off dividends?] How the rich stay/get richer??

The dividends have nothing to do with it, they are an illusion, the mathematical fact is that if you spend less than the growth generated by your portfolio then it will continue to grow, regardless of whether it comes from dividends or not. For example, if a portfolio generates 2% dividends and 6% c...
by John3754
Wed Aug 20, 2014 7:24 am
 
Forum: Investing - Theory, News & General
Topic: [live off dividends?] How the rich stay/get richer??
Replies: 62
Views: 4668

Re: VBMPX safe enough for saving for tuition

How would you feel if you lost 10% of your tuition money?
by John3754
Tue Aug 19, 2014 9:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: VBMPX safe enough for saving for tuition
Replies: 7
Views: 550

Re: gifting money, and smoking

Angelus359 wrote:He tried quitting like 5 years ago. His hands shook so much from nicotine withdrawal that he couldn't work and his doctor told him to start smoking again.


I'm calling shenanigans on this.
by John3754
Tue Aug 19, 2014 2:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: gifting money, and smoking
Replies: 29
Views: 1816

Re: gifting money, and smoking

Trying to get someone to give up smoking when they don't really want to is a total waste of time.
by John3754
Tue Aug 19, 2014 12:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: gifting money, and smoking
Replies: 29
Views: 1816

Re: 20 Year Old With 70k to Invest

The index funds always have history of always coming back up, as long as you wait long enough. In the early 90s the Nikkei index dropped over 60% and it hasn't recovered yet. Ok, what I meant was, most total stock market indexes, that own most of the stock market, don't fall and never come back, as...
by John3754
Tue Aug 19, 2014 7:30 am
 
Forum: Investing - Help with Personal Investments
Topic: 20 Year Old With 70k to Invest
Replies: 49
Views: 2330

Re: 20 Year Old With 70k to Invest

JoshCine wrote:The index funds always have history of always coming back up, as long as you wait long enough.


In the early 90s the Nikkei index dropped over 60% and it hasn't recovered yet.
by John3754
Tue Aug 19, 2014 12:10 am
 
Forum: Investing - Help with Personal Investments
Topic: 20 Year Old With 70k to Invest
Replies: 49
Views: 2330

Re: 20 Year Old With 70k to Invest

Alright, I like the Vanguard World Fund. Should I put all 70k in there? How would you feel if your portfolio lost 50% of it's value? I'll let someone else address the issue of individual stocks. :wink: I think I would be okay. Just leave it in there and wait for it to go up again. Is that the right...
by John3754
Mon Aug 18, 2014 11:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: 20 Year Old With 70k to Invest
Replies: 49
Views: 2330

Re: 20 Year Old With 70k to Invest

People blindly make recommendations for 100% stock portfolios on this board without knowing anything at all about the persons risk tolerance. The fact that someone is in their 20s or 30s does not mean that 100% stock is automatically appropriate for them, in fact the OP said in his original post (a...
by John3754
Mon Aug 18, 2014 11:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: 20 Year Old With 70k to Invest
Replies: 49
Views: 2330

Re: 20 Year Old With 70k to Invest

l1nkown wrote:Alright, I like the Vanguard World Fund. Should I put all 70k in there?


How would you feel if your portfolio lost 50% of it's value?

I'll let someone else address the issue of individual stocks. :wink:
by John3754
Mon Aug 18, 2014 11:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: 20 Year Old With 70k to Invest
Replies: 49
Views: 2330

Re: 20 Year Old With 70k to Invest

People will tell you to invest some in bonds, but I feel its not a good idea. At our age, as long as you have an emergency fund and don't plan on taking anything out for quite awhile, you'll be fine. At 19-20, I don't see a problem with that. People blindly make recommendations for 100% stock portf...
by John3754
Mon Aug 18, 2014 10:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: 20 Year Old With 70k to Invest
Replies: 49
Views: 2330

Re: Gold, Silver, Copper

The gold train doesn't seem to have gone anywhere...
by John3754
Mon Aug 18, 2014 8:11 pm
 
Forum: Investing - Theory, News & General
Topic: Gold, Silver, Copper
Replies: 106
Views: 6389

Re: Does this Bond AA make sense?

If you're concerned about interest rate risk, have you considered CDs instead of bond funds? What is your time horizon for this money?
by John3754
Sun Aug 17, 2014 11:56 am
 
Forum: Investing - Help with Personal Investments
Topic: Does this Bond AA make sense?
Replies: 9
Views: 466

Re: Help with investing "fun" money

If you're going to "just buy another index fund" then why don't you take your "fun" money and simply put it into your regular asset allocation?
by John3754
Sun Aug 17, 2014 2:11 am
 
Forum: Investing - Theory, News & General
Topic: Help with investing "fun" money
Replies: 7
Views: 636

Re: Who sells fresh coffee that is not as strong as Starbuck

And while I believe caffeine has a "feel" to it, I don't think it has much of a taste . Caffeine is a bitter alkaloid and it can most certainly be tasted. I said "not much of a taste." It's not the only bitter taste in coffee. Decaf tastes bitter, too, and while I think I can te...
by John3754
Fri Aug 15, 2014 5:32 pm
 
Forum: Personal Consumer Issues
Topic: Who sells fresh coffee that is not as strong as Starbucks?
Replies: 50
Views: 2224

Re: Who sells fresh coffee that is not as strong as Starbuck

nisiprius wrote:And while I believe caffeine has a "feel" to it, I don't think it has much of a taste.


Caffeine is a bitter alkaloid and it can most certainly be tasted.
by John3754
Fri Aug 15, 2014 5:18 pm
 
Forum: Personal Consumer Issues
Topic: Who sells fresh coffee that is not as strong as Starbucks?
Replies: 50
Views: 2224

Re: Who sells fresh coffee that is not as strong as Starbuck

rec7 wrote:What I mean by strong is very high in caffeine. I guess you might say I am looking for some weaker coffee.


Ask them to mix half regular and half decaf.
by John3754
Fri Aug 15, 2014 3:54 pm
 
Forum: Personal Consumer Issues
Topic: Who sells fresh coffee that is not as strong as Starbucks?
Replies: 50
Views: 2224

Re: VTSMX vs VTSAX

They're the exact same fund, the admiral shares just have a lower expense ratio, that's why they perform slightly better, because you're paying less for the same fund.
by John3754
Fri Aug 15, 2014 3:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: VTSMX vs VTSAX [Total Stock Market, Investor vs. Admiral]
Replies: 11
Views: 1171

Re: Who sells fresh coffee that is not as strong as Starbuck

rec7 wrote:True but when I am traveling I would like to find coffee that is not super strong. I have tried McDonald's but it to seems to be very strong maybe even stronger that Starbucks.


What do you mean by "strong"?
by John3754
Fri Aug 15, 2014 3:51 pm
 
Forum: Personal Consumer Issues
Topic: Who sells fresh coffee that is not as strong as Starbucks?
Replies: 50
Views: 2224

Re: Who sells fresh coffee that is not as strong as Starbuck

The supermarket. Bring the beans home and brew it however you like it. That or Dunkin Donuts, which a lot of people seem to like but personally I think is rancid.
by John3754
Fri Aug 15, 2014 3:45 pm
 
Forum: Personal Consumer Issues
Topic: Who sells fresh coffee that is not as strong as Starbucks?
Replies: 50
Views: 2224

Re: Do you hold cash/money market outside of your emergency

Grt2bOutdoors wrote:
John3754 wrote:I do not, cash allocations are a drag on returns.


:o Especially when the market drops right?


Allow me to rephrase...cash allocations are most likely to be a drag on long term returns.

Better? :wink:
by John3754
Thu Aug 14, 2014 12:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: Do you hold cash/money market outside of your emergency fund
Replies: 31
Views: 1967

Re: Do you hold cash/money market outside of your emergency

I do not, cash allocations are a drag on returns.
by John3754
Wed Aug 13, 2014 11:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: Do you hold cash/money market outside of your emergency fund
Replies: 31
Views: 1967

Re: IRA Fees

I pay $0 in fees to have my IRA with Vanguard (other than the ERs of the funds themselves).
by John3754
Wed Aug 13, 2014 2:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: IRA Fees
Replies: 11
Views: 666

Re: Is the 401k 10% early withdrawal penalty worth it?

If you're not saving enough to max out all available tax advantaged space AND make a sizeable taxable contribution then you're probably not saving enough to retire early anyway, so the question is kind of irrelevant. Explain how 50k+ per year of retirement savings for the next 15-20 years is not en...
by John3754
Wed Aug 13, 2014 12:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: Is the 401k 10% early withdrawal penalty worth it?
Replies: 32
Views: 1436

Re: Is the 401k 10% early withdrawal penalty worth it?

If you're not saving enough to max out all available tax advantaged space AND make a sizeable taxable contribution then you're probably not saving enough to retire early anyway, so the question is kind of irrelevant.
by John3754
Wed Aug 13, 2014 10:52 am
 
Forum: Personal Finance (Not Investing)
Topic: Is the 401k 10% early withdrawal penalty worth it?
Replies: 32
Views: 1436

Re: Can I beat 0.8% money market with TIAA?

If you can tolerate the one year of non-liquidity then the I Bond is probably the best thing you're going to find.
by John3754
Tue Aug 12, 2014 11:36 am
 
Forum: Investing - Help with Personal Investments
Topic: Can I beat 0.8% money market with TIAA?
Replies: 2
Views: 341

Re: Need for International Investing ?

We are arguing about whether the very best seats for a movie are in the precise center of the row, or whether there are advantages to being on the aisle that outweigh the advantages of being in the precise mathematical center. Everyone agrees that you can see the movie from any seat in the theatre....
by John3754
Mon Aug 11, 2014 9:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need for International Investing ?
Replies: 49
Views: 2524

Re: Instead of a CD Ladder

This is nothing more than an attempt at market timing, it may work, but it may also blow up in your face. Alot of people have been making moves like this for the past few years "because rates have nowhere to go but up" and they've lost out on returns because of it. You say "well what ...
by John3754
Mon Aug 11, 2014 5:19 pm
 
Forum: Investing - Help with Personal Investments
Topic: Instead of a CD Ladder
Replies: 26
Views: 4400

Re: Need for International Investing ?

Our best days are ahead of us...I am still bullish on America. I love America as much as the next guy, really I do, but this kind of sentiment is speculation at best. The American financial system nearly imploded upon it self just a few short years ago (my how soon we forget), and from what I can s...
by John3754
Mon Aug 11, 2014 9:42 am
 
Forum: Investing - Help with Personal Investments
Topic: Need for International Investing ?
Replies: 49
Views: 2524

Re: Need for International Investing ?

Our best days are ahead of us...I am still bullish on America. I love America as much as the next guy, really I do, but this kind of sentiment is speculation at best. The American financial system nearly imploded upon it self just a few short years ago (my how soon we forget), and from what I can s...
by John3754
Sun Aug 10, 2014 7:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need for International Investing ?
Replies: 49
Views: 2524

Re: 100% Total Stock Market in Roth Account?

Sounds like a reasonable plan.
by John3754
Sun Aug 10, 2014 5:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: 100% Total Stock Market in Roth Account?
Replies: 7
Views: 797

Re: Need for International Investing ?

I would say or ask to the OP... do you feel holding the US market would give you good enough returns from the equity side of your portfolio going forward? If so,..... One could also ask..if you've been investing this way all along and change now, and it turns out that international outperforms US g...
by John3754
Sun Aug 10, 2014 1:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need for International Investing ?
Replies: 49
Views: 2524

Re: Need for International Investing ?

If you've been investing this way for many years why change now? What makes you feel differently now if it's been working fine for you for so long?
by John3754
Sat Aug 09, 2014 9:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need for International Investing ?
Replies: 49
Views: 2524

Re: cash reserves

This is essentially what you just said..."I know market timing is a fools game, but do you think I should time the market?"

Do you really think that it makes sense to follow that statement with that question?
by John3754
Sat Aug 09, 2014 6:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: cash reserves
Replies: 19
Views: 1826

Re: No difference between stocks and gold?

He's not saying that stock returns are 99.2% speculation, he's saying that 99.2% of the money that changes hands in relation to market activity goes to transaction costs because of excessive trading. Imagine that I bake a loaf of bread and sell it to person A for $2, person A then sells it to person...
by John3754
Sat Aug 09, 2014 2:01 pm
 
Forum: Investing - Theory, News & General
Topic: No difference between stocks and gold?
Replies: 4
Views: 638

Re: Going 60+% international? (US resident)

John Bogle in Common Sense on Mutual Funds reccomends no more than 20% if you must but also makes a good argument of not needing to add it at all. Warren Buffett says the average person will do very well investing in an index fund that buys America. He is also putting his money where his mouth is a...
by John3754
Sat Aug 09, 2014 1:42 am
 
Forum: Investing - Theory, News & General
Topic: Going 60+% international? (US resident)
Replies: 83
Views: 5879

Re: Expected REIT (dividend) return

Your question is absolutely unanswerable. You're also comparing apples to oranges.
by John3754
Fri Aug 08, 2014 9:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Expected REIT (dividend) return
Replies: 9
Views: 698

Re: Automatic rebalancing

InvestorNewb wrote:Rebalancing may be overrated. Have a look at this thread: viewtopic.php?f=10&t=116876


Rebalancing because you think it may yield "bonus" returns may be "overrated", but rebalancing in order to mitigate risk is absolutely valid.
by John3754
Thu Aug 07, 2014 3:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: Automatic rebalancing
Replies: 5
Views: 369

Re: How Often to Look for Rebalancing Opportunities?

Rebalancing is not about looking for "opportunities". Rebalancing restores a portfolio to its target risk/reward profile. I would like to reduce the frequency I look at the portfolio, but not at the expense of allowing the risk/reward relationship to fluctuate out of tolerance bands. Time...
by John3754
Thu Aug 07, 2014 8:59 am
 
Forum: Investing - Help with Personal Investments
Topic: How Often to Look for Rebalancing Opportunities?
Replies: 20
Views: 1041

Re: How Often to Look for Rebalancing Opportunities?

Rebalancing is not about looking for "opportunities".
by John3754
Wed Aug 06, 2014 10:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: How Often to Look for Rebalancing Opportunities?
Replies: 20
Views: 1041

Re: When is a 3.75% load worth it?

We have no guarantees in any of our investments, yet we still make them. Because in part of its past performance. The mantra around here of stay the course...guess what that course is based on? Past performance. What other course are you staying? The one that you think/hope it will repeat! Owning t...
by John3754
Wed Aug 06, 2014 7:19 am
 
Forum: Investing - Theory, News & General
Topic: When is a 3.75% load worth it?
Replies: 79
Views: 5187

Re: Peak Money Market Fund Yields in 1981-82

Electron wrote:In looking through some old records I see that my first IRA investment in early 1982 was an 18 month CD paying 16.5%. That's hard to believe today.


Perhaps but...what was the real yield on a 16.5% CD in 1982?
by John3754
Tue Aug 05, 2014 8:29 pm
 
Forum: Investing - Theory, News & General
Topic: Peak Money Market Fund Yields in 1981-82
Replies: 24
Views: 1675

Re: What actions to take in a stock market crash?

Trader Joe wrote:My plan in a crash is to move to 100% stock. Easy money.


And at what point do you move to a 100% stock? How much does the market have to drop before you "pull the trigger".
by John3754
Tue Aug 05, 2014 3:54 pm
 
Forum: Investing - Theory, News & General
Topic: What actions to take in a stock market crash?
Replies: 85
Views: 5372

Re: What actions to take in a stock market crash?

Are you supposed to use $250,000 of those bonds to buy $250,000 of stocks? Is that the "right" move? No. That is bad math. I'll let you re-do the math and report back. I guess it wouldn't be $250,000 since the value of the bonds would be higher, right? But it would still be a substantial ...
by John3754
Mon Aug 04, 2014 8:55 pm
 
Forum: Investing - Theory, News & General
Topic: What actions to take in a stock market crash?
Replies: 85
Views: 5372

Re: What actions to take in a stock market crash?

Ok, so sell bonds and buy stocks. But what if the knife keeps falling? Like I said- let's say you sold bonds and bought stocks after a 30% stock crash. Then 1 month later, or some time later, it falls another 30%. How do you decide when to "pull the trigger" on that falling knife?? Second...
by John3754
Mon Aug 04, 2014 8:45 pm
 
Forum: Investing - Theory, News & General
Topic: What actions to take in a stock market crash?
Replies: 85
Views: 5372

Re: What to tell friends who think "it's all a scam"

Actively trying to convince other people what they should or shouldn't do with their life savings is a losing proposition. Imagine what would happen if you convinced this person to invest and then the market crashes and they panic and sell. Now your friend just lost 40% of their life savings and the...
by John3754
Mon Aug 04, 2014 3:03 pm
 
Forum: Investing - Theory, News & General
Topic: What to tell friends who think "it's all a scam"
Replies: 64
Views: 5675

Re: Suze Orman - Doesn't Like Target Date Funds

What is her reason for not liking them?
by John3754
Sun Aug 03, 2014 7:33 pm
 
Forum: Investing - Theory, News & General
Topic: Suze Orman - Doesn't Like Target Date Funds
Replies: 26
Views: 3653

Re: Help with Bonds

Stillwater45 wrote:He says he is more weary of bonds than stocks in current environment.


I wouldn't let someone who said this advise me on where to buy a cup of coffee, never mind where to invest my life savings.

Also, it's wary or leery, not weary.
by John3754
Fri Aug 01, 2014 8:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with Bonds
Replies: 7
Views: 493
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