Search found 2460 matches

by MnD
Thu Jul 02, 2015 11:22 am
Forum: Personal Finance (Not Investing)
Topic: Obsessing towards zero balance on credit card.
Replies: 105
Views: 4562

Re: Obsessing towards zero balance on credit card.

If you have a high balance even paying in full end of month, your score will go down, albeit not tremendously. Thus as stated I often pay my main card more than once a month, again for example $10k payment to a contractor, they wouldn't discount further for cash: why give up the CC cash back by pay...
by MnD
Thu Jul 02, 2015 7:33 am
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 373
Views: 45914

Re: What are you up YTD? [Year To Date]

2.93%
75/25 with equities 47:53 US:ex-US
by MnD
Wed Jul 01, 2015 5:39 pm
Forum: Investing - Theory, News & General
Topic: Shiller : US stocks pricey; time to think international
Replies: 21
Views: 2494

Re: Shiller : US stocks pricey; time to think international

Taking a "Vanguard World Stock" approach to equity allocation really takes the steam and excitement out of these sorts of cautions and warnings.
by MnD
Wed Jul 01, 2015 5:37 pm
Forum: Personal Finance (Not Investing)
Topic: Obsessing towards zero balance on credit card.
Replies: 105
Views: 4562

Re: Obsessing towards zero balance on credit card.

Six of one, half dozen of another. Why does it matter? It takes approximately 30 seconds to log on, schedule a payment and click the button. People lend me a substantial sum of money every single month for 43 days duration on average, continue to do so month after month and in fact pay me to do so....
by MnD
Wed Jul 01, 2015 5:25 pm
Forum: Personal Finance (Not Investing)
Topic: Obsessing towards zero balance on credit card.
Replies: 105
Views: 4562

Re: Obsessing towards zero balance on credit card.

What again is the point of this? Fun and entertainment? I think it's a practice to try and emulate the performance of a debit card (where money is taken from bank accounts close to or when spending occurs) while still earning the credit card rewards. There also seems to be a camp that believes that...
by MnD
Wed Jul 01, 2015 4:50 pm
Forum: Personal Finance (Not Investing)
Topic: Obsessing towards zero balance on credit card.
Replies: 105
Views: 4562

Re: Obsessing towards zero balance on credit card.

Auto-pay statement balance in full exactly on the due date. All card statement and due dates set to the same day of the month. Charge absolutely everything possible. This provides a nice monthly accounting of the vast majority of spending almost a month prior to payment due. I know a month out how i...
by MnD
Tue Jun 30, 2015 11:40 am
Forum: Investing - Help with Personal Investments
Topic: What stocks have you been buying recently and why? Or are you holding off on buying until Greek crisis settles?
Replies: 21
Views: 1948

Re: What stocks have you been buying recently and why? Or are you holding off on buying until Greek crisis settles?

Every two weeks....... EAFE-index international fund, S&P 500 index, Russell US market completion index, stable value fund, Dodge and Cox Income fund. As needed to maintain/complete asset allocation..... Emerging market fund, small cap international fund and Dodge and Cox Global Bond fund shares.
by MnD
Tue Jun 30, 2015 11:32 am
Forum: Investing - Theory, News & General
Topic: Emergency Portfolio with 30% Stocks
Replies: 33
Views: 1720

Re: Emergency Portfolio with 30% Stocks

One of the worst financial mistakes I have made is keeping an emergency fund in money market. I could have been far better off investing the money I have sizable assets in taxable accounts for a real emergency that can be sold off in days The emergency fund concept to me seems more applicable for l...
by MnD
Tue Jun 30, 2015 11:18 am
Forum: Investing - Theory, News & General
Topic: Emergency Portfolio with 30% Stocks
Replies: 33
Views: 1720

Re: Emergency Portfolio with 30% Stocks

My emergency fund is 100% in emerging markets, and small cap international funds and a couple of individual stock positions. Don't have decent EM or SCI in 401-K options and keep fixed income in tax-deffered. So emergency and IRA's is where I fill-in SCI and EM. If I needed a substantial draw from i...
by MnD
Tue Jun 30, 2015 10:56 am
Forum: Investing - Theory, News & General
Topic: Are REITs necessary in a portfolio? Why?
Replies: 65
Views: 4256

Re: Are REITs necessary in a portfolio? Why?

This is true, in particular about counting your home as part of your portfolio for risk assessment. It is also true that your home has a high specific risk - that is you have one big egg in one small basket. REITs help you diversify away some of this risk. I think the benefit of diversification war...
by MnD
Tue Jun 30, 2015 8:49 am
Forum: Investing - Help with Personal Investments
Topic: Savings plan "pivot"
Replies: 17
Views: 1620

Re: Savings plan "pivot"

I'd bite the bullet and contribute $18K pre-tax. Getting to that max is a great feeling. You are in a hefty combined tax bracket so the "rebate" will be substantial, lessening the impact on your current lifestyle. 18% which effectively is more like 12% hit on your paycheck isn't such a hug...
by MnD
Tue Jun 30, 2015 8:35 am
Forum: Investing - Theory, News & General
Topic: Are REITs necessary in a portfolio? Why?
Replies: 65
Views: 4256

Re: Are REITs necessary in a portfolio? Why?

I own them through the broad indexes and have a large position in real estate via my home valued at around 25% of my investment portfolio. That's plenty for me so have no interest in adding more real estate positions. It's popular here to pretend a personal residence isn't a real estate position but...
by MnD
Mon Jun 29, 2015 9:47 pm
Forum: Investing - Theory, News & General
Topic: What ratio are you stocks/bonds and how old are you?
Replies: 254
Views: 15892

Re: What ratio are you stocks/bonds and how old are you?

Many, if not most, investors exclude cash when reporting AA. I agree that this becomes a problem when investors claim to have a 100/0 portfolio while excluding an abnormally large emergency fund. My own portfolio 100/0 portfolio is 95/5 including cash. I include cash in all investment accounts unde...
by MnD
Mon Jun 29, 2015 3:41 pm
Forum: Investing - Theory, News & General
Topic: International stock "dividend variability" Why?
Replies: 49
Views: 4604

Re: International stock "dividend variability" Why?

Note that the the fluctuation in dividends can be much more than any proportional currency move. The currency contracts are marked to market with the gains/losses added or subtracted from the dividend. Take a look at international bond funds that make monthly income distributions such as the example...
by MnD
Mon Jun 29, 2015 2:23 pm
Forum: Investing - Theory, News & General
Topic: International stock "dividend variability" Why?
Replies: 49
Views: 4604

Re: International stock "dividend variability" Why?

Electron provides the answer to the question below. Appreciation and depreciation on open currency contracts are treated as realized gains and loses and thus reflected in the distributed net income. This also significantly affects international bond fund dividend amounts. I'd also suggest reviewing ...
by MnD
Mon Jun 29, 2015 10:36 am
Forum: Investing - Theory, News & General
Topic: Bogleheads are more aggressive...
Replies: 57
Views: 5970

Re: Bogleheads are more aggressive...

Poll graphs and tables in the "age and AA" thread has been updated by Simplegift with 170+ respondents. Trend line at age 20 is roughly at the corresponding Vanguard Target date glide path, with all other ages somewhat below the glide path. https://www.bogleheads.org/forum/viewtopic.php?f=...
by MnD
Sun Jun 28, 2015 8:30 am
Forum: Investing - Theory, News & General
Topic: What was the 2008 crash like in real time?
Replies: 217
Views: 19437

Re: What was the 2008 crash like in real time?

February 21, 2009 http://www.bogleheads.org/forum/viewtopic.php?f=10&t=33201 Absolutely. Rebalanced to 80/20 in November, increased our 401-K contribution %'s, all new investment savings are buying at the 80/20 ratio, have increased consumer spending to take advantage of bargains, spent heavily ...
by MnD
Sat Jun 27, 2015 11:56 am
Forum: Investing - Theory, News & General
Topic: Bogleheads are more aggressive...
Replies: 57
Views: 5970

Re: Bogleheads are more aggressive...

The polls were just an opportunity for partisan advocates to voice their opinion, not even close to a science based. I would add a few more puzzle boxes, but that is for another thread. And thanks again to Kevn M for another fine post. So we are partisan, overconfident, possessing just enough knowl...
by MnD
Sat Jun 27, 2015 9:59 am
Forum: Investing - Theory, News & General
Topic: Bogleheads are more aggressive...
Replies: 57
Views: 5970

Re: Bogleheads are more aggressive...

I suspect Bogleheads invest more aggressively than most people because a little knowledge can be a dangerous thing. I question if most Bogleheads know as much about personal finance as they think they do, since bonds and annuities, not to mention options, remain such puzzle boxes for many Boglehead...
by MnD
Sat Jun 27, 2015 8:53 am
Forum: Personal Finance (Not Investing)
Topic: Future of SS due to Supreme Court Decision on Gay Marriages
Replies: 16
Views: 2089

Re: Future of SS due to Supreme Court Decision on Gay Marriages

Significant additional income tax revenue from married filed jointly should more than make up for additional SS payouts. but payroll taxes will not change. Right. The SS trust fund and the IRS's enormous pile of income tax receipts are pretty much separate, to my knowledge... Not true. When the SS ...
by MnD
Sat Jun 27, 2015 8:50 am
Forum: Personal Finance (Not Investing)
Topic: Future of SS due to Supreme Court Decision on Gay Marriages
Replies: 16
Views: 2089

Re: Future of SS due to Supreme Court Decision on Gay Marriages

Thanks for sourcing what I had read earlier. Yes, higher tax revenue with limited costs. I was also curious. Found a couple of interesting articles related to your question. In terms of revenue to the federal government, according to the CBO gay marriage across all 50 states will increase revenue by...
by MnD
Sat Jun 27, 2015 7:54 am
Forum: Personal Finance (Not Investing)
Topic: Future of SS due to Supreme Court Decision on Gay Marriages
Replies: 16
Views: 2089

Re: Future of SS due to Supreme Court Decision on Gay Marriages

Significant additional income tax revenue from married filed jointly should more than make up for additional SS payouts. Many same-sex and now increasingly married couples are dual high earners, hence incremental survivor benefit pay-outs are limited while additional liability from married filing jo...
by MnD
Fri Jun 26, 2015 4:37 pm
Forum: Personal Consumer Issues
Topic: Do you buy used cars like a Boglehead actually should?
Replies: 165
Views: 15327

Re: Do you buy used cars like a Boglehead actually should?

No _ I purchase new highly rated vehicles for quality and reliability and keep them for 12-16 years well maintained, parked in the garage at night and not abused. At sale I get way more than what the price guides indicate. Late-model low mileage used cars, especially highly rated one seem very overp...
by MnD
Thu Jun 25, 2015 10:16 am
Forum: Personal Finance (Not Investing)
Topic: umbrella coverage premiums
Replies: 25
Views: 2148

Re: umbrella coverage premiums

My $2M annual policy premium went from $200-something to $800-something when I added two more cars (4 total) and two young drivers one of whom has a recent speeding ticket.
by MnD
Wed Jun 24, 2015 11:12 pm
Forum: Investing - Theory, News & General
Topic: What ratio are you stocks/bonds and how old are you?
Replies: 254
Views: 15892

Re: What ratio are you stocks/bonds and how old are you?

75/25, Age 52
US/Ex-US stocks are ~50:50 - ~global market cap
by MnD
Tue Jun 23, 2015 8:32 am
Forum: Investing - Theory, News & General
Topic: What was the 2008 crash like in real time?
Replies: 217
Views: 19437

Re: What was the 2008 crash like in real time?

I fully rebalanced twice, once about halfway down and once again virtually at the bottom. 75-25 portfolio was down well over a quarter-million in 2008 alone and that included new money in. The second time I rebalanced was a really bad morning in the market with a really bad week to the downside earl...
by MnD
Sat Jun 20, 2015 10:04 am
Forum: Personal Finance (Not Investing)
Topic: One-Two Punch for my credit card game
Replies: 62
Views: 7647

Re: One-Two Punch for my credit card game

Since we started playing the CC game in a very small way about 3 years ago we've earned and collected on two round trips all first class trip for 2 to Hawaii outer islands and several domestic upgrades for me on biz trips. "In the bank" we have: ~200,000 Chase Ultimate Reward points (good ...
by MnD
Thu Jun 18, 2015 3:11 pm
Forum: Investing - Theory, News & General
Topic: Vanguard website down
Replies: 17
Views: 1791

Re: Vanguard website down

Are you guys all like daytraders or something? :mrgreen:
by MnD
Wed Jun 17, 2015 3:53 pm
Forum: Investing - Theory, News & General
Topic: Siegel's letter to the editor on Shiller's CAPE data problem
Replies: 14
Views: 2659

Re: Siegel's letter to the editor on Shiller's CAPE data problem

It's not about fudging CAPE up or down - it's about time inconsistent data sets in a trend and forecast model. This is a huge issue in any sort of data analysis - I deal with it every day in analysis of environmental monitoring data sets that span many decades. Step functions in the data in terms of...
by MnD
Tue Jun 16, 2015 10:40 am
Forum: Investing - Theory, News & General
Topic: $2.55 Billion in gains -- $40 million in returns to investors
Replies: 7
Views: 2146

Re: $2.55 Billion in gains -- $40 million in returns to investors

I owned Royce Total Return Fund for many years and concluded that the fund did outperform small value index funds (before fees).
After fees it was about the same so all the out-performance was paid to the fund managers and sponsors.
Sounds like the same story here on a massive scale.
by MnD
Tue Jun 16, 2015 7:41 am
Forum: Investing - Theory, News & General
Topic: Siegel's letter to the editor on Shiller's CAPE data problem
Replies: 14
Views: 2659

Siegel's letter to the editor on Shiller's CAPE data problem

The model is sound but the data in the time series is time inconsistent and thus flawed in estimating valuation and long-term real returns. June 13 The Economist http://www.economist.com/news/letters/21653998-letters-editor “Don’t write off write-offs” (May 16th) misunderstood my criticism of Robert...
by MnD
Mon Jun 15, 2015 5:20 pm
Forum: Investing - Help with Personal Investments
Topic: Advice on Retirement Allocation
Replies: 12
Views: 1823

Re: Advice on Retirement Allocation

Skip the F fund. G fund has the same yield and no interest risk.
You should be compensated for risk and in the F fund you aren't.
by MnD
Mon Jun 15, 2015 3:22 pm
Forum: Investing - Theory, News & General
Topic: Why High Equity Allocation in Retirement
Replies: 78
Views: 9687

Re: Why High Equity Allocation in Retirement

75/25 near an age mid-50's retirement and will hold that AA for life. We have significant fixed-income like revenue streams (one pension, one maxed claim on SS and one above average SS claim). We don't need or want more fixed income in our investment portfolio. Using immediate annuity prices for the...
by MnD
Tue Jun 09, 2015 11:52 am
Forum: Investing - Theory, News & General
Topic: 5% of year-end portfolio balance for a 35-year SWR?
Replies: 38
Views: 4962

Re: 5% of year-end portfolio balance for a 35-year SWR?

I don't "need" 5%. 0% would cover genuine "need" in fact. But I like spending money and the way 5% of balance seems to play out historically (25% higher initial income, decent potential for real growth and relatively constrained upside and downside) is much more appealing than 4%...
by MnD
Wed Jun 03, 2015 11:27 am
Forum: Investing - Theory, News & General
Topic: 5% of year-end portfolio balance for a 35-year SWR?
Replies: 38
Views: 4962

Re: 5% of year-end portfolio balance for a 35-year SWR?

There obviously will be a great deal of variability of spending with a percentage of portfolio balance approach, but if one can live with that (the OP mentions other sources of cash flow for living expenses) and has a desire to preserve at least a good-sized chunk of real value over time for legacy...
by MnD
Mon Jun 01, 2015 3:12 pm
Forum: Investing - Theory, News & General
Topic: 5% of year-end portfolio balance for a 35-year SWR?
Replies: 38
Views: 4962

Re: 5% of year-end portfolio balance for a 35-year SWR?

Virtually no difference although I'd pick the outcomes for 5-year treasuries over "long interest rate" series. Less spread in outcomes and a slightly higher average ending portfolio. I'm effectively at ~8.5 year Treasuries looking at the yield curve so I guess that would be somewhere betwe...
by MnD
Mon Jun 01, 2015 2:58 pm
Forum: Investing - Theory, News & General
Topic: 5% of year-end portfolio balance for a 35-year SWR?
Replies: 38
Views: 4962

Re: 5% of year-end portfolio balance for a 35-year SWR?

That Firecalc data set assumes you keep a 75/25 portfolio throughout retirement and also links your fixed income returns to the "Long Interest Rate" which I assume means your fixed income is in Long Term Treasuries. Are you prepared to hold that type of portfolio throughout retirement? Ye...
by MnD
Sun May 31, 2015 5:49 pm
Forum: Investing - Theory, News & General
Topic: 5% of year-end portfolio balance for a 35-year SWR?
Replies: 38
Views: 4962

Re: 5% of year-end portfolio balance for a 35-year SWR?

The good thing about this approach though it is at least has some aspect of built in belt tightening in bad times. Yes, I like that aspect. I'm also somewhat greedy and not very frugal so I also like the belt loosening aspects, both initially and if markets do well. I'm not at all OK with either po...
by MnD
Sun May 31, 2015 5:26 pm
Forum: Investing - Theory, News & General
Topic: 5% of year-end portfolio balance for a 35-year SWR?
Replies: 38
Views: 4962

Re: 5% of year-end portfolio balance for a 35-year SWR?

This seems like a decent strategy but if the markets are unkind during retirement then you might run out too fast... Starting with $1.5M, 35 years out over 110 cycles tested in real dollars: 5% of portfolio balance spent annually: Here is how your portfolio would have fared in each of the 110 cycle...
by MnD
Sun May 31, 2015 11:51 am
Forum: Investing - Theory, News & General
Topic: 5% of year-end portfolio balance for a 35-year SWR?
Replies: 38
Views: 4962

5% of year-end portfolio balance for a 35-year SWR?

This looks much more appealing to me than a fixed inflation adjusted SWR. 25% higher initial income than 4% rule and 67% higher than 3%. I added no less than 75% of prior year withdrawal as the only modifier. Higher real income initially and good potential for higher real income going forward, no to...
by MnD
Sun May 31, 2015 11:32 am
Forum: Investing - Theory, News & General
Topic: Conventional Wisdom
Replies: 20
Views: 1683

Re: Conventional Wisdom

I've owned mutual funds since the early 1980's. Vanguard existed then and they had at last three flagship funds back then: Prime Money Market S&P500 Index fund GNMA fund Probably Wellesley and Wellington were around then, too. The big deal then was to use no-load mutual funds and CDs and saving...
by MnD
Sun May 31, 2015 11:21 am
Forum: Investing - Theory, News & General
Topic: Conventional Wisdom
Replies: 20
Views: 1683

Re: Conventional Wisdom

Baskets of individual dividend blue-chip stocks and individual muni bonds.
I remember clipping the bond interest coupons for my Dad (born 1922).
I think you just took those coupons to the bank and they deposited the cash value of them in your checking or savings account.
by MnD
Sat May 30, 2015 11:20 am
Forum: Investing - Theory, News & General
Topic: CNBC article - Low cost is just the first step in picking funds: Bogle
Replies: 20
Views: 2691

Re: CNBC article - Low cost is just the first step in picking funds: Bogle

"A modest holding in a low-cost emerging market index fund is also a reasonable approach, but be sure you understand the risks," Bogle wrote in "The Little Book of Common Sense Investing."
:beer
by MnD
Sat May 30, 2015 9:30 am
Forum: Investing - Help with Personal Investments
Topic: College Savings - Inherited IRA and 529 advice
Replies: 7
Views: 460

Re: College Savings - Inherited IRA and 529 advice

The inherited IRA required mandatory distributions will now be based off your wife's age/life expectancy so will be modest. I agree with livesoft, if your state 529 plan doesn't offer a state tax deduction, choose a top-rated plan from another state. If your portfolio is large compared to your 529 a...
by MnD
Sat May 30, 2015 8:24 am
Forum: Investing - Theory, News & General
Topic: Improving the TSP [for current participants]
Replies: 83
Views: 11516

Re: Improving the TSP [for current participants]

I could grit my teeth and put up with the I fund and the awkward distributions, if they'd just get the Roth conversion option going. Selfish, I know :D, but that's what truly makes me crazy at this point. If I could convert all my TSP to Roth, I could probably resign myself to the RMD's (even on Ro...
by MnD
Sat May 30, 2015 7:41 am
Forum: Investing - Help with Personal Investments
Topic: Anyone had the Personal Capital complementary review yet?
Replies: 31
Views: 4389

Re: Anyone had the Personal Capital complementary review yet?

I had my first discussion with my "rep" on Friday. 20 minutes start to finish and no other calls planned. He initially wanted to schedule two more meetings with the first being an in-depth analysis of my portfolio and the 2nd being recommendations (obviously to switch to their AUM paid ser...
by MnD
Thu May 28, 2015 4:26 pm
Forum: Personal Finance (Not Investing)
Topic: "Sock drawered" credit cards.
Replies: 18
Views: 2697

Re: "Sock drawered" credit cards.

I close any and all cards I don't need or want anymore and don't worry about utilization. I find the big secret to having a high credit score is always paying your bills on time. The last time i was denied credit or didn't get the very best rate on a credit product was around 1986. A few years back ...
by MnD
Thu May 28, 2015 10:00 am
Forum: Personal Finance (Not Investing)
Topic: American Express sneakery
Replies: 37
Views: 4847

Re: American Express sneakery

The first thing I do when getting a new card is set up Auto-pay in full on the due date . I would never consider paying less than the full amount owed or paying anything earlier than the due date. Being paid (via cash back or rewards) to spend other peoples money, not paying them back until 28 to 58...
by MnD
Wed May 27, 2015 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: Cost of a "free" PhD program is around half a million? How does anyone afford this?
Replies: 91
Views: 6702

Re: Cost of a "free" PhD program is around half a million? How does anyone afford this?

Easily affordable. My daughter is going straight from undergrad physics to a PhD computer science program this fall at a "top 5" ranked institution. Stipend+fellowships+summer internship opportunities are generous and she has zero existing debt. Her living expenses will be very low so she ...
by MnD
Wed May 27, 2015 3:32 pm
Forum: Investing - Theory, News & General
Topic: Improving the TSP [for current participants]
Replies: 83
Views: 11516

Re: Improving the TSP [for current participants]

Some financially unsophisticated employees met individually with a financial planner who did some group TSP training recently and all went away from those individual meetings with wanting to move funds out of the TSP at retirement. It did not take detailed shortcomings of the TSP to sway them, just ...

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