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Re: Car Advice: When to Replace?

Look at the prices of new cars with incentives vs the same model as a used car. It seems like the difference has become very slim. In fact, I helped my daughter buy a new car this summer. The new car with incentives was CHEAPER than the 1 year old used models of the same thing. It makes no sense to...
by Leesbro63
Mon Sep 15, 2014 9:51 pm
 
Forum: Personal Consumer Issues
Topic: Car Advice: When to Replace?
Replies: 33
Views: 2028

Re: The dangerous practice of rebalancing...

Exactly how do you do this? FWIW, I have 3 years cash flow in tax-advantaged accounts in each of VFSUX and VBILX, 6 years total. That said we are withdrawing about 2% pa, and that comes from our tax-advantaged VSMGX account. The pure bond funds are an emergency stash we can tap if we need to. L. We...
by Leesbro63
Mon Sep 15, 2014 6:33 pm
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 165
Views: 8917

Re: The Roosevelts, PBS special

I recorded it. Correct me if I am wrong...I got 30 minutes of actual Roosevelt show, and 15 minutes of how great Ken Burns is and 15 more of PBS begging. Am I missing something? You probably watched the one-hour preview of the series. I saw that last month. The series is seven two-hours episodes. H...
by Leesbro63
Mon Sep 15, 2014 6:29 pm
 
Forum: Personal Consumer Issues
Topic: The Roosevelts, PBS special
Replies: 22
Views: 1328

Re: The Roosevelts, PBS special

I recorded it. Correct me if I am wrong...I got 30 minutes of actual Roosevelt show, and 15 minutes of how great Ken Burns is and 15 more of PBS begging. Am I missing something?
by Leesbro63
Mon Sep 15, 2014 5:23 pm
 
Forum: Personal Consumer Issues
Topic: The Roosevelts, PBS special
Replies: 22
Views: 1328

Re: The dangerous practice of rebalancing...

Exactly how do you do this? FWIW, I have 3 years cash flow in tax-advantaged accounts in each of VFSUX and VBILX, 6 years total. That said we are withdrawing about 2% pa, and that comes from our tax-advantaged VSMGX account. The pure bond funds are an emergency stash we can tap if we need to. L. We...
by Leesbro63
Mon Sep 15, 2014 4:30 pm
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 165
Views: 8917

Re: The dangerous practice of rebalancing...

To me, at this stage in my life, "enough" means nothing about percentages, but rather "enough" real inflation-protected *dollars* in my fixed income accounts... Exactly how do you do this? Presumably a serious question. If you need $1000 monthly "real inflation-protected do...
by Leesbro63
Mon Sep 15, 2014 12:56 pm
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 165
Views: 8917

Re: The dangerous practice of rebalancing...

dodecahedron wrote:To me, at this stage in my life, "enough" means nothing about percentages, but rather "enough" real inflation-protected *dollars* in my fixed income accounts


Exactly how do you do this?
by Leesbro63
Mon Sep 15, 2014 9:43 am
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 165
Views: 8917

Re: The dangerous practice of rebalancing...

JustinR wrote:What if the answer to rebalancing in a falling market to double your rebalancing schedule?

For example, if you rebalance every year, do it every two years. If you rebalance every 6 months, do it every 12 months. Etc.


How would that have saved the 40,000 to 8,000 over 20 years Japanese investor?
by Leesbro63
Mon Sep 15, 2014 7:56 am
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 165
Views: 8917

Re: Car Advice: When to Replace?

From a financial perspective I agree with the Boglehead general advice to buy new or near new and drive it into the ground. But with all the safety advances, I really wonder if those who can afford a new car are being pennywise and poundfoolish. There may indeed come a plateau with advances in safe...
by Leesbro63
Sun Sep 14, 2014 4:03 pm
 
Forum: Personal Consumer Issues
Topic: Car Advice: When to Replace?
Replies: 33
Views: 2028

Re: Car Advice: When to Replace?

I think 10 years was a good rule not long ago, but today I really think you can get closer to 15 for most vehicles. Vehicle life and dependability has gone up significantly industry-wide. I was planning on buying a new car this year to replace my 15+ year-old car, but I decided in the end to keep i...
by Leesbro63
Sun Sep 14, 2014 2:29 pm
 
Forum: Personal Consumer Issues
Topic: Car Advice: When to Replace?
Replies: 33
Views: 2028

Re: The dangerous practice of rebalancing...

nedsaid wrote:I think rebalancing is one heck of a good idea. It is a very good investing discipline. But like any other strategy one has to take into account someone's personal situation, market conditions, and valuations.


And tax cost.
by Leesbro63
Sun Sep 14, 2014 1:06 pm
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 165
Views: 8917

Re: Car Advice: When to Replace?

From a financial perspective I agree with the Boglehead general advice to buy new or near new and drive it into the ground. But with all the safety advances, I really wonder if those who can afford a new car are being pennywise and poundfoolish. There may indeed come a plateau with advances in safet...
by Leesbro63
Sun Sep 14, 2014 12:02 pm
 
Forum: Personal Consumer Issues
Topic: Car Advice: When to Replace?
Replies: 33
Views: 2028

Re: The dangerous practice of rebalancing...

OK, we should probably quantify the new Boglehead rule of thumb for rebalancing from bonds into stocks during (significant) declines in the stock market. Does it vary with age? People in theiir 20's and 30's can direct new contributions to stocks and effectively rebalance that way in many cases sin...
by Leesbro63
Sun Sep 14, 2014 11:28 am
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 165
Views: 8917

Re: The dangerous practice of rebalancing...

Whether rebalancing helps your returns or not is just the luck of the draw; over time it's not likely to help, but it probably won't hurt either unless you're unlucky enough to hit a big bull market especially just before you cash out. But it probably will help to soften the blow if there is prolon...
by Leesbro63
Sat Sep 13, 2014 6:45 pm
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 165
Views: 8917

Re: The dangerous practice of rebalancing...

Now for a young person with a "70/30" portfolio matters are entirely different. Why? Because a young person with a "70/30" portfolio does not have their entire net worth tied up in their portfolio. The lion's share of their net worth is in their human capital. So if stocks tank ...
by Leesbro63
Sat Sep 13, 2014 10:02 am
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 165
Views: 8917

Re: The dangerous practice of rebalancing...

Response to Nedsaid, two posts above: My experience is similar. I am also about your age (now 54). 2008 was the wake up call that rebalancing needed to be rethought. Like you, I resisted the huge urge to panic-sell, but did not do the rebalancing required of my plan. I had never before considered th...
by Leesbro63
Sat Sep 13, 2014 9:45 am
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 165
Views: 8917

Re: The dangerous practice of rebalancing...

Also for investors with large taxable portfolios, how can you REALLY liability match?
by Leesbro63
Sat Sep 13, 2014 8:48 am
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 165
Views: 8917

Re: The dangerous practice of rebalancing...

Ignore the article except to poke fun at it. First rebalancing INTO risky assets during a falling market is exactly what you want to do. Its the best part of rebalancing. You are buying low! We only know that in hindsight. What if we get into a Japan situation. You're REALLY smart and buy low after...
by Leesbro63
Sat Sep 13, 2014 8:47 am
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 165
Views: 8917

Re: The dangerous practice of rebalancing...

Rebalancing into a declining market is a Pascal's Wager. What if Cramer was right and DOW 6666 had turned into DOW 3333 and you had rebalanced at 6666 by selling safe bonds to buy stocks? And DOW 3333 "Japaned"?
by Leesbro63
Fri Sep 12, 2014 9:37 pm
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 165
Views: 8917

Re: "Why 97% of People Don't Use 529 College Savings Plans."

529 plans don't work well for people who expect to pay estate tax. They use up the annual exclusion. If you have a taxable estate, you can give the student $14,000 a year ($28,000 for a married couple with gift-splitting) and also pay for college (or pay for tuition for a grandchild). So you're rei...
by Leesbro63
Thu Sep 11, 2014 2:30 am
 
Forum: Investing - Theory, News & General
Topic: "Why 97% of People Don't Use 529 College Savings Plans."
Replies: 103
Views: 9311

Re: "Why 97% of People Don't Use 529 College Savings Plans."

I will never use a 529 plan because of simplicity. Imagine I have two kids so I have two 529 plans, a 401K (at least 1), a ROTH, HSA, taxable (maybe more than 1), etc. Too much for me. I like simplicity . I like to have as few accounts as possible. It keeps my money more focused. I'd rather have mo...
by Leesbro63
Thu Sep 11, 2014 2:25 am
 
Forum: Investing - Theory, News & General
Topic: "Why 97% of People Don't Use 529 College Savings Plans."
Replies: 103
Views: 9311

Re: "Why 97% of People Don't Use 529 College Savings Plans."

4. After GWB's economic stimulus (http://en.wikipedia.org/wiki/Economic_Growth_and_Tax_Relief_Reconciliation_Act_of_2001), 529 tax advantages was greatly reduced. My memory is the complete opposite. It was the 2001 act, allowing tax-free withdrawals if used for qualified education, that was the dea...
by Leesbro63
Wed Sep 10, 2014 8:41 pm
 
Forum: Investing - Theory, News & General
Topic: "Why 97% of People Don't Use 529 College Savings Plans."
Replies: 103
Views: 9311

Problem with Quicken 2014 Backups

I am having real issues with Quicken 2014 backups/copy. Why does it sometimes give a fail message? Why do I lose data if I don't backup/copy and the computer gets shut down (electrical failure or something not planned)? I've been using Quicken for years but this 2014 version is a PITA with regard to...
by Leesbro63
Wed Sep 10, 2014 8:38 pm
 
Forum: Personal Consumer Issues
Topic: Problem with Quicken 2014 Backups
Replies: 5
Views: 457

Re: "Why 97% of People Don't Use 529 College Savings Plans."

4. After GWB's economic stimulus (http://en.wikipedia.org/wiki/Economic_Growth_and_Tax_Relief_Reconciliation_Act_of_2001), 529 tax advantages was greatly reduced. My memory is the complete opposite. It was the 2001 act, allowing tax-free withdrawals if used for qualified education, that was the dea...
by Leesbro63
Wed Sep 10, 2014 7:29 pm
 
Forum: Investing - Theory, News & General
Topic: "Why 97% of People Don't Use 529 College Savings Plans."
Replies: 103
Views: 9311

Re: "Why 97% of People Don't Use 529 College Savings Plans."

Several friends suggested we fill out the FASFA, saying "You might be surprised." I expected this would be a waste of time, but I did the first year for the older son. I was not surprised, it was a waste of time and I never did it again. One of my kids did receive a small academic scholar...
by Leesbro63
Wed Sep 10, 2014 10:42 am
 
Forum: Investing - Theory, News & General
Topic: "Why 97% of People Don't Use 529 College Savings Plans."
Replies: 103
Views: 9311

Re: "Why 97% of People Don't Use 529 College Savings Plans."

529s are a tax break for the rich. The poor get grants and need-based scholarships. The middle class gets some tax credits/deductions. That's why 97% of people don't use a 529. Only the 3% who are rich or plan to become that way use them. If you're not putting away >$2K per year for your kids to go...
by Leesbro63
Wed Sep 10, 2014 10:37 am
 
Forum: Investing - Theory, News & General
Topic: "Why 97% of People Don't Use 529 College Savings Plans."
Replies: 103
Views: 9311

Re: Peter Lynch was wrong

Rick's article is great although I would have included his second piece of bad advice that 7% was a safe withdrawal rate. Lynch was just wrong. Rick, you should do a follow up article on this second "Lynch Wrong" as well. Did you run the simulation to see how a 7% nominal SWR on a stock-h...
by Leesbro63
Tue Sep 09, 2014 8:54 pm
 
Forum: Investing - Theory, News & General
Topic: Peter Lynch was wrong
Replies: 64
Views: 6015

Re: Peter Lynch was wrong

I'm not postive that is right. 4% is 4% plus inflation. We could have high interest rates and low inflation, so "nominal" would be low. If inflation was 1% and the 10 year treasury was yielding 8% (and presumably TIPS 7%), why would you ever invest in equities? You could have a SWR of 8% ...
by Leesbro63
Tue Sep 09, 2014 12:58 pm
 
Forum: Investing - Theory, News & General
Topic: Peter Lynch was wrong
Replies: 64
Views: 6015

Re: Peter Lynch was wrong

Buysider wrote:If the 10 year treasury was yielding 8% today, your SWR (nominal) would be higher than 4%.


I'm not postive that is right. 4% is 4% plus inflation. We could have high interest rates and low inflation, so "nominal" would be low.
by Leesbro63
Tue Sep 09, 2014 9:45 am
 
Forum: Investing - Theory, News & General
Topic: Peter Lynch was wrong
Replies: 64
Views: 6015

Re: Peter Lynch was wrong

Has Lynch ever fessed up about either huge wrong? Has anyone ever pressed him before Rick, gently, now? I'm sure Rick had to say a lot worse things in his short time as a Smith Barney broker than Peter Lynch had to say in his career. This SWR discussion is apples and oranges anyway. The SWR rate of...
by Leesbro63
Tue Sep 09, 2014 9:43 am
 
Forum: Investing - Theory, News & General
Topic: Peter Lynch was wrong
Replies: 64
Views: 6015

Re: Peter Lynch was wrong

Has Lynch ever fessed up about either huge wrong? Has anyone ever pressed him before Rick, gently, now?
by Leesbro63
Tue Sep 09, 2014 9:04 am
 
Forum: Investing - Theory, News & General
Topic: Peter Lynch was wrong
Replies: 64
Views: 6015

Re: Peter Lynch was wrong

Hindsight bias is always 20/20,but at the time Peter Lynch was "right" for his shareholders. :happy "Peter Lynch managed the Fidelity Magellan Fund from 1977 to 1990, during which time the fund\'s assets grew from $20 million to $14 billion. More importantly, Lynch reportedly beat th...
by Leesbro63
Mon Sep 08, 2014 11:12 pm
 
Forum: Investing - Theory, News & General
Topic: Peter Lynch was wrong
Replies: 64
Views: 6015

Re: PA529 Guaranteed Savings plan -- is it worth it?

From what I understand, the PA teacher's pension fund managers panicked and sold near the bottom and the fund is still reeling from this. The PA TAP guys did not sell. So in some ways, they SHOULD be considered heros for staying the course. Of course had DOW 6666ish become DOW 3333ish (as Cramer and...
by Leesbro63
Sat Aug 30, 2014 6:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: PA529 Guaranteed Savings plan -- is it worth it?
Replies: 12
Views: 610

Re: Health Insurance Paid From 529?

With all the hoopla surrounding health insurance, I guess it's only a matter of time before someone decides to pay for it out of a 529 and end up with some sort of definite IRS acceptance or rejection. I am not going to be the guinea pig, but will continue to follow this.
by Leesbro63
Sat Aug 30, 2014 12:46 pm
 
Forum: Personal Consumer Issues
Topic: Health Insurance Paid From 529?
Replies: 5
Views: 325

Re: Health Insurance Paid From 529?

When we get to Qualified Tuition Program (529 plans), they explicit include room and board, but they say nothing about insurance, medical expenses, or student health fees. I recently paid for school-sponsored health insurance and it never appears on Form 1098-T as a qualified expense. Yeah but my k...
by Leesbro63
Sat Aug 30, 2014 11:55 am
 
Forum: Personal Consumer Issues
Topic: Health Insurance Paid From 529?
Replies: 5
Views: 325

Health Insurance Paid From 529?

My son's university requires him to have health insurance or to purchase a plan that they offer. Would this be a qualified expense for 529 plan withdrawal purposes?
by Leesbro63
Sat Aug 30, 2014 8:00 am
 
Forum: Personal Consumer Issues
Topic: Health Insurance Paid From 529?
Replies: 5
Views: 325

Re: PA529 Guaranteed Savings plan -- is it worth it?

I did this for both my kids, fully funding thru grad school. I did it as a lump sum in 2001 when the tax law changed so qualified withdrawals would be tax free. It's been the best investment I've ever made both in terms of return and piece of mind. Pay for college now and it's done! I agree that the...
by Leesbro63
Fri Aug 29, 2014 12:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: PA529 Guaranteed Savings plan -- is it worth it?
Replies: 12
Views: 610

Re: How Much For New Windows?

I thought this was going to be about Windows 7 vs Windows 8!
by Leesbro63
Thu Aug 28, 2014 10:27 am
 
Forum: Personal Consumer Issues
Topic: How Much For New Windows?
Replies: 32
Views: 1835

Re: FYI, PenFed offering 0.0% new car loans

Perhaps they get a fee from Truecar.
by Leesbro63
Wed Aug 27, 2014 2:49 am
 
Forum: Personal Finance (Not Investing)
Topic: FYI, PenFed offering 0.0% new car loans
Replies: 15
Views: 1822

Re: Savers vs. Spenders: Default Mode

People have different opinions on what their standard of living should be. If their expected standard of living is greater than their income they are a spender. If their expected standard of living is less than their income their are a saver. When someone has a large change in their income, their s...
by Leesbro63
Tue Aug 26, 2014 10:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: Savers vs. Spenders: Default Mode
Replies: 34
Views: 2233

Re: Savers vs. Spenders: Default Mode

Then how do you explain people of minimal means who accumulate many times their annual spending, and people with big incomes who end up broke?
by Leesbro63
Tue Aug 26, 2014 9:58 pm
 
Forum: Personal Finance (Not Investing)
Topic: Savers vs. Spenders: Default Mode
Replies: 34
Views: 2233

Re: FYI, PenFed offering 0.0% new car loans

Why would even a consumer-friendly credit union offer zero percent? This has to cost them SOMETHING.
by Leesbro63
Tue Aug 26, 2014 9:56 pm
 
Forum: Personal Finance (Not Investing)
Topic: FYI, PenFed offering 0.0% new car loans
Replies: 15
Views: 1822

Savers vs. Spenders: Default Mode

I was thinking about this today and thought it would be a good subject to develop here. For "savers" (a minority), the default mode is that income should be saved, and it's somewhat painful to spend part of it. But for spenders, the mindset is that all income should default to spending, an...
by Leesbro63
Tue Aug 26, 2014 9:49 pm
 
Forum: Personal Finance (Not Investing)
Topic: Savers vs. Spenders: Default Mode
Replies: 34
Views: 2233

Re: Zegna Suits

gerrym51 wrote:for a one time use no. I buy 8 dollar watches from Wal-mart. not the right demographic-lol


Why waste 8 bucks? 8-) My phone is my watch.
by Leesbro63
Sun Aug 24, 2014 5:37 pm
 
Forum: Personal Consumer Issues
Topic: Zegna Suits
Replies: 197
Views: 9450

iPhone Text Question

Based on a great response to another tech problem, I'll ask this one. Back in the olden days, when someone texted me (on iPhone), the most recent person to text had their message at the top. Now when I get a text, I often have to scroll down thru a number of recent prior text messages to find the ne...
by Leesbro63
Fri Aug 22, 2014 5:23 pm
 
Forum: Personal Consumer Issues
Topic: iPhone Text Question
Replies: 2
Views: 419

Re: Big iPhone Data Bills/Google Maps

Do you use Facebook? They recently made a change where videos automatically play, even on cellular, which uses tons of data. Here's an article: http://www.theguardian.com/technology/2013/dec/24/beware-facebooks-new-video-in-news-feed-could-be-a-mobile-data-headache You are da man! Thank you so much...
by Leesbro63
Fri Aug 22, 2014 4:53 pm
 
Forum: Personal Consumer Issues
Topic: Big iPhone Data Bills/Google Maps
Replies: 16
Views: 1392

Big iPhone Data Bills/Google Maps

A question for my TECHIE friends: I've been using GOOGLE MAPS as my GPS of choice for about a year. All of the sudden, I am getting huge DATA bills from AT&T for my iPhone. I THINK it's related to the Google Maps. Why did I NOT have data problems before with Google Maps but do now? Any ideas or ...
by Leesbro63
Fri Aug 22, 2014 9:48 am
 
Forum: Personal Consumer Issues
Topic: Big iPhone Data Bills/Google Maps
Replies: 16
Views: 1392

Re: Windows 7 PC?

I find no compelling reason to even consider Win 8. Even Microsoft knows this is a dog. It's been dubbed the new Vista. Windows 9 should be the one to consider. Since Win7 has many years of support left, I am in NO hurry to have my clients (or me) migrate off Win7. http://news.yahoo.com/might-perfe...
by Leesbro63
Tue Aug 19, 2014 11:36 am
 
Forum: Personal Consumer Issues
Topic: Windows 7 PC?
Replies: 49
Views: 2486

Re: Inflation-indexed SPIAs: A Good Deal?

Robert Rubin overrode the Treasury and some other doubters to introduce TIPS, a very expensive form of US government funding at the time (4% real yields!). But inflation has been below expectations, since, so not so expensive. And in doing so Rubin created a public good-- something created for publ...
by Leesbro63
Tue Aug 19, 2014 11:35 am
 
Forum: Investing - Theory, News & General
Topic: Inflation-indexed SPIAs: A Good Deal?
Replies: 22
Views: 2947
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