Are they high income? I ask because perhaps a different taxable fund might offer both better diversification and equivalent yield after taxes.
It seems reasonable to me that a retired teacher with a huge stake in CalPERS might want other income from non state sources (though I think CALPERS and CALSTRS are pretty well diversified in their holdings overall, they are ultimately backed up by the state as the effective annuity 'insurance provider.'
Search found 622 matches
- Tue Nov 17, 2015 12:19 am
- Forum: Personal Investments
- Topic: CalSTRS Pension and Municipal Bond Diversification
- Replies: 2
- Views: 659
- Tue Nov 17, 2015 12:04 am
- Forum: Personal Consumer Issues
- Topic: Is The Bay Area Worth It?
- Replies: 159
- Views: 29843
Re: Is The Bay Area Worth It?
No one is educating anyone anymore. Well, I would respectfully suggest you modify your tone if you want an honest discussion on these forums. You seem pretty angry for guy who understands the true meaning of life better than those of us who use "Kids, TV and movies as primary entertainment and who eat frozen entrees from Safeway or at Olive Garden" :) I'm glad you love SF. I think it's a beautiful town. I just could never spend that much on a house. I can't imagine having that much debt, even if I did have a high-paying job... and if I saved enough first to pay for most of the house in cash, at that point, I would just move someplace cheaper and semi-retire. But good luck to you! Yeah, no kidding. His username is 510 (super borin...
- Mon Nov 16, 2015 6:53 pm
- Forum: Personal Consumer Issues
- Topic: Is The Bay Area Worth It?
- Replies: 159
- Views: 29843
Re: Is The Bay Area Worth It?
.Edited out to avoid argumentative replies. People seem to feel entitle sped to bash my home as fair game. No one is educating anyone anymore.
- Mon Nov 16, 2015 5:00 pm
- Forum: Investing - Theory, News & General
- Topic: Any books for how people become wealthy?
- Replies: 67
- Views: 10429
Re: Any books for how people become wealthy?
http://www.amazon.com/Art-Happiness-10th-Anniversary-Handbook-ebook/dp/B002UK6NO0/ref=tmm_kin_swatch_0?_encoding=UTF8&qid=&sr= The Art of Happiness by Dalai Lama XIV, Howard C. Cutler Nearly every time you see him, he's laughing, or at least smiling. And he makes everyone else around him feel like smiling. He's the Dalai Lama, the spiritual and temporal leader of Tibet, a Nobel Prize winner, and an increasingly popular speaker and statesman. What's more, he'll tell you that happiness is the purpose of life, and that "the very motion of our life is towards happiness." How to get there has always been the question. He's tried to answer it before, but he's never had the help of a psychiatrist to get the message across in a c...
- Sun Nov 15, 2015 11:47 pm
- Forum: Personal Consumer Issues
- Topic: Is The Bay Area Worth It?
- Replies: 159
- Views: 29843
Re: Is The Bay Area Worth It?
As I recall, Enron was based in Houston and Worldcom in. Jackson, Tn. Anyone who is earning a good salary (as I stated repeatedly) is advised to LWYM and invest in index funds. When stuff hits the fan, adapt.
As I said already, thread has run it course, time to lock the puppy.
As I said already, thread has run it course, time to lock the puppy.
- Sat Nov 14, 2015 10:27 am
- Forum: Personal Consumer Issues
- Topic: At what level does the cost of something matter to you?
- Replies: 64
- Views: 9255
Re: At what level does the cost of something matter to you?
At no level.
Cost always matters to me.
Quality also always matters to me.
My internal 'economic cost benefit scale' doesn't ever seem to turn off, but perhaps I am deranged.
Cost always matters to me.
Quality also always matters to me.
My internal 'economic cost benefit scale' doesn't ever seem to turn off, but perhaps I am deranged.
- Sat Nov 14, 2015 10:23 am
- Forum: Personal Consumer Issues
- Topic: Is The Bay Area Worth It?
- Replies: 159
- Views: 29843
Re: Is The Bay Area Worth It?
Edited out to avoid argumentative replies. People seem to feel entitle sped to bash my home as fair game.
- Fri Nov 13, 2015 10:20 am
- Forum: Personal Investments
- Topic: Age 53 / Pay Off Student Loans with Inheritance?
- Replies: 50
- Views: 8939
Re: Age 53 / Pay Off Student Loans with Inheritance?
Perhaps the student loan forgiveness programs are bad government policy (a topic that may out of bounds for this forum). However, the objections to these programs should be directed at the policy makers, not the participants who utilize them. How can you honestly tell an individual to decline loan forgiveness if they are eligible for it? We need to stop shaming people for participating in student loan forgiveness if doing so is in their best interest. The student loan forgiveness programs are admittedly a bizarre system of subsidizing higher education, but that is the current system. Remember, the government subsidizes ALL KINDS of things. Please keep in mind that the government is subsidizing your mortgage, and your charitable giving, and...
- Fri Nov 13, 2015 9:35 am
- Forum: Personal Finance (Not Investing)
- Topic: "Vacation Buy" from employer - is it worth it?
- Replies: 30
- Views: 18574
Re: "Vacation Buy" from employer - is it worth it?
For those saying this is a bad deal, consider that the company is still paying for the employee medical, dental, life, disability and other benefits during the week of vacation (while receiving no work during that week). If one doesn't need the income, I would take this every time. How about I just buy back every week and get free medical without working
- Fri Nov 13, 2015 9:13 am
- Forum: Personal Consumer Issues
- Topic: Is The Bay Area Worth It?
- Replies: 159
- Views: 29843
Re: Is The Bay Area Worth It?
"Is The Bay Area Worth It?" Not if you want to keep your net worth. http://www.economist.com/news/united-states/21677989-capital-disruption-fears-it-may-be-experiencing-too-much-golden-gates http://www.ft.com/intl/cms/s/0/6ad992e6-8792-11e5-9f8c-a8d619fa707c.html#axzz3rNXXExmv Please...an economist article describing how gentrification impacts in one of SFs hottest neighborhoods are displacing poor Hispanic residents means you can't live in SF and build wealth? That is just silly. Anyone can live within their means in a community, but that doesn't mean you can live wherever you like, regardless of income. That is universal in any big city. I lived in Tokyo during the boom years of the very early 90s, when it was the most expensiv...
- Wed Nov 11, 2015 1:26 pm
- Forum: Investing - Theory, News & General
- Topic: iShares cutting core ETF expenses, launching international bond ETF
- Replies: 36
- Views: 5325
Re: iShares cutting core ETF expenses, launching international bond ETF
Good updates. Thanks. Several of us have predicted that a zero fees equity index fund might be possible, primarily due to other profit making opportunities ETF managers can realize via control of deal flow, equity lending activities, etc. We should have a pool to predict the day and year that the first 0 basis points equity or bond ETF is announced. I will predict December 10, 2020.
- Wed Nov 11, 2015 11:31 am
- Forum: Personal Finance (Not Investing)
- Topic: Husbands Longterm Unemployment Adjusting to New Norm
- Replies: 62
- Views: 11255
Re: Husbands Longterm Unemployment Adjusting to New Norm
My bad. When we lived in Texas we had several friends from a particularly prolific religious group, and I thought OP meant the youngest daughter #5 and son #3, were still in school. I will fix my post.Broken Man 1999 wrote:Eight kids, I don't think so, but possible.
I read the info as "Dear Daughter 5 years old" and "Dear Son 3 years old.""......I am self employed and was working 30 hrs a week making 60k while Mommying DD5 and DS3...."
Broken Man 1999
- Wed Nov 11, 2015 11:21 am
- Forum: Personal Consumer Issues
- Topic: Is The Bay Area Worth It?
- Replies: 159
- Views: 29843
Re: Is The Bay Area Worth It?
OP here. For those wondering, we chose not to move. We may set our sights on the DC area in the future. DC still has most of the upside we're looking for without as much of the downside. Lived briefly in dc. Summers are horrible. Prices in the city are pretty high also. Suburbs are a bit better. Great city overall A bit more pretentious. What do you do? Is a question you'll likely hear a lot. +1. I lived and owned a home in DC. Warts aside, it is an awesome community with very diverse choices. Do your homework about various areas. It is a great place to live, and I particularly loved it as a young person. It is also a city you pretty much need money and a good job, plus reasonable commute to live well. It is somewhat more affordable, now. ...
- Wed Nov 11, 2015 11:06 am
- Forum: Personal Finance (Not Investing)
- Topic: Whole Life. Can someone sum up why its a sucker scam (in as few words as possible)
- Replies: 60
- Views: 9275
Re: Whole Life. Can someone sum up why its a sucker scam (in as few words as possible)
Whole life = life insurance + investment account
* High fees on investment portion of combined product make it a bad deal.
* Relatively expensive life insurance for insurance portion make it a bad deal.
* Claims of 'guaranteed returns' are a mirage, the guarantees have fine print that make them effectively guaranteeing your returns with your own gains, which is a not true assurance. You need to read and understand a lot of fine print to 'get this'.
If whole life offered cheap insurance plus low fee investments, them it might be worth considering, but that has never been offered.
* High fees on investment portion of combined product make it a bad deal.
* Relatively expensive life insurance for insurance portion make it a bad deal.
* Claims of 'guaranteed returns' are a mirage, the guarantees have fine print that make them effectively guaranteeing your returns with your own gains, which is a not true assurance. You need to read and understand a lot of fine print to 'get this'.
If whole life offered cheap insurance plus low fee investments, them it might be worth considering, but that has never been offered.
- Sun Nov 08, 2015 9:05 am
- Forum: Personal Finance (Not Investing)
- Topic: Husbands Longterm Unemployment Adjusting to New Norm
- Replies: 62
- Views: 11255
Re: Husbands Longterm Unemployment Adjusting to New Norm
+1knpstr wrote:sell husbands car
pay off your car
pay off student loan
More data would help.
Only you can decide if money spent on a luxury car and private schools are worth a later retirement age and relatively low standard of living. Maybe one of the kids will want to help you out in retirement when they start earning?
You might check out the Mr Money Mustache forum for inspiration and interesting ideas on how to become more frugal.
- Sat Nov 07, 2015 11:53 pm
- Forum: Investing - Theory, News & General
- Topic: Suggested Best Practices During A Rising Interest Rate Environment
- Replies: 59
- Views: 11073
Re: Suggested Best Practices During A Rising Interest Rate Environment
Just seeking actionable investment theory...In the USA, with a strong chance that interest rates will soon begin to rise, for every 0.25% rate increase, what would be the best practice in adjusting one's exposure to bonds (that is, if it is a best practice to make an adjustment at all) in percentage terms of one's current overall balances, so one can try to get as close as possible a return to what one seeks without increasing risk? Or, is it best practice to ignore the rate increase for it is part of a fully diversified portfolio which includes the total bond community? Thanks. Why do you think there is a strong chance rates will rise? That said, over time one would hold shorter duration bond funds if they feel rates will rise, which redu...
- Sat Nov 07, 2015 5:01 pm
- Forum: Investing - Theory, News & General
- Topic: Buy on Dip/Sell on Rise
- Replies: 87
- Views: 8368
Re: Buy on Dip/Sell on Rise
A broader term for this behavior is "Active Management." Studies suggest this activity fails to outperform, after management costs, fees, and commissions.
- Sat Nov 07, 2015 4:51 pm
- Forum: Personal Consumer Issues
- Topic: Phishing attempt?
- Replies: 19
- Views: 1882
Re: Phishing attempt?
Identical, realistic looking one for PayPal in email inbox today.
- Sat Nov 07, 2015 12:25 pm
- Forum: Investing - Theory, News & General
- Topic: GE Synchrony Share Exchange
- Replies: 50
- Views: 10722
Re: GE Synchrony Share Exchange
Can't know for sure whether it is a better deal until you can actually receive and sell the shares and then compare prices. I assume it is going to have something akin to an ex dividend price adjustment effect. I, for one, prefer to own the portfolio of GE businesses and don't care what the current relative prices are, unless a sale price was guaranteed by someone. A friend is CEO of a GE business unit, so I have a sentimental reason for keeping some shares anyway (plus it has a low basis, so won't sell either way).
- Wed Nov 04, 2015 7:14 pm
- Forum: Personal Finance (Not Investing)
- Topic: Should real estate income be taxed as capital gains or income?
- Replies: 17
- Views: 2274
Re: Should real estate income be taxed as capital gains or income?
Rental income is just that, income. Comparable to a dividend on a stock, perhaps. Appreciation of the value of the property, once sold, is treated as a capital gain. You don't pay tax on a capital gain until realized. Wishful thinking does not change the definition of tax accounting basics. Pay the correct rate and move on is my advice. Don't obsess that you owe some tax. I think you are misunderstanding why it gets categorized as passive vs active income. Salary from a job is earned income too, taxed at income rates. I wish my pay check was a capital gain on my education, but it just doesn't work that way. :) There is one major mistake in this analysis. I assume you are a sole proprietor and report these activities on your personal income...
- Wed Nov 04, 2015 7:08 pm
- Forum: Investing - Theory, News & General
- Topic: Buy on Dip/Sell on Rise
- Replies: 87
- Views: 8368
Re: Buy on Dip/Sell on Rise
No for me, since at this time it makes no sense for me to sell. I am investing for future needs and while in the past I did, I am now trying to hold all assets.
So sometimes I do buy when I think the day is good, like perhaps buying a bit more if the market dropped, but overall I am 'always buying and never selling'.
One of my biggest investing regrets is selling some 'well out of the money' covered calls on stocks I owned, to earn extra cash. These stocks had very large gains. Not only was I forced to sell when they skyrocketed (missing out in 2/3rds of their eventual gains), but I had a large tax bill as well. Had I just held on, a $2k investment would be $300k now.
So sometimes I do buy when I think the day is good, like perhaps buying a bit more if the market dropped, but overall I am 'always buying and never selling'.
One of my biggest investing regrets is selling some 'well out of the money' covered calls on stocks I owned, to earn extra cash. These stocks had very large gains. Not only was I forced to sell when they skyrocketed (missing out in 2/3rds of their eventual gains), but I had a large tax bill as well. Had I just held on, a $2k investment would be $300k now.
- Tue Nov 03, 2015 10:06 am
- Forum: Personal Finance (Not Investing)
- Topic: Dilemma Regarding Mortgage
- Replies: 20
- Views: 3503
Re: Dilemma Regarding Mortgage
I would go with the ARM. Essentially your income allows you to 'self insure' against the interest rate risk and save a lot of . I don't see interest rates sky rocking, in fact the opposite. However, if rates go crazy then you can 'rebalance' into paying down the mortgage aggressively. Most of these have a cap on one year and over life of loan that would keep payments tolerable even under worst case.
- Tue Nov 03, 2015 9:55 am
- Forum: Personal Finance (Not Investing)
- Topic: Should real estate income be taxed as capital gains or income?
- Replies: 17
- Views: 2274
Re: Should real estate income be taxed as capital gains or income?
Rental income is just that, income. Comparable to a dividend on a stock, perhaps.
Appreciation of the value of the property, once sold, is treated as a capital gain. You don't pay tax on a capital gain until realized.
Wishful thinking does not change the definition of tax accounting basics. Pay the correct rate and move on is my advice. Don't obsess that you owe some tax.
I think you are misunderstanding why it gets categorized as passive vs active income. Salary from a job is earned income too, taxed at income rates. I wish my pay check was a capital gain on my education, but it just doesn't work that way.
Appreciation of the value of the property, once sold, is treated as a capital gain. You don't pay tax on a capital gain until realized.
Wishful thinking does not change the definition of tax accounting basics. Pay the correct rate and move on is my advice. Don't obsess that you owe some tax.
I think you are misunderstanding why it gets categorized as passive vs active income. Salary from a job is earned income too, taxed at income rates. I wish my pay check was a capital gain on my education, but it just doesn't work that way.
- Mon Nov 02, 2015 8:13 pm
- Forum: Personal Finance (Not Investing)
- Topic: College Admission Time, What parents need to be aware and how to be helpful
- Replies: 292
- Views: 41064
Re: College Admission Time, What parents need to be aware and how to be helpful
A more regional private school would be U of Chicago and Northwestern. Graduates get great jobs at Google, Microsoft, Intel, Oracle, Facebook, etc. I only mention these companies because of the suggested math or computer science major and the fact that these schools are no where near the HQs of these companies nor are these schools usually considered as tech powerhouses. If you are really targeting a tech giant like Google or Facebook it is interesting to use LinkedIn or similar resources to see the actual program connections to the institution. It seems incredibly focused, but the connections are there to be data mined. As mentioned earlier CMU is an excellent school for computer science. One mentioned a lack of Biz school undergrad at se...
- Sun Nov 01, 2015 10:51 am
- Forum: Investing - Theory, News & General
- Topic: Why I respectfully reject ( some of) Mr. Bogle's advice
- Replies: 51
- Views: 10121
Re: Why I respectfully reject ( some of) Mr. Bogle's advice
I don't disagree with your strategy per se (i.e., if you can withstand a 50% loss then generally you can be 100% in stocks according to Larry Swedroe's "equity exposure....max loss" chart at https://investingroadmap.wordpress.com/ based on the 1973-1974 crash (and just as relevant in 2000-2002 and 2007-2009). However, two thoughts to contemplate: 1. What if the max loss isn't 50% but is closer to 79% like what occurred from 1929-1932? Would you still be ok? 2. If the stock market lost 50%, wouldn't you wish you had some bonds to rebalance back into stocks, thereby buying stocks on the cheap? That's what many senior citizens were doing in the 1970s when they were being called "crazy" by the financial media who declared t...
- Sun Nov 01, 2015 10:46 am
- Forum: Personal Investments
- Topic: Mother has $5m w/ Fidelity advisor - what to do?
- Replies: 28
- Views: 4436
Re: Mother has $5m w/ Fidelity advisor - what to do?
Agree with above. You need to change the dynamics of this relationship. Excuse my language, but with a $5M account earning them 50k a year they need to be your B**ch, not the other way around. No need to be gentle with them. For example, I regularly call my broker and tell them to credit me for commissions on a trade, though these are rare, if and when I run out of free ones in a particular account. I have also shown them bonuses and requested they match (for example Fidelity pays someone $1500 to move $1M in funds to them). They comply, because even with a low fee structure there are tons of ways for these brokerage firms to make money by holding our money (especially if we are sheep). Tell them you will move in kind to vanguard if they do...
- Sun Nov 01, 2015 10:31 am
- Forum: Investing - Theory, News & General
- Topic: Shifting international towards small + emerging
- Replies: 59
- Views: 6216
Re: Shifting international towards small + emerging
Hold VEU, VEA and VWO. Been tough to keep with the international weighting in my plan these last 5 yrs, but sticking with it. They have dropped a bit overall because I don't rebalance that part of my portfolio.livesoft wrote:Well, VEA did better than VWO and VSS over the last 1, 3, and 5 years according to a Morningstar.com growth-of chart. SCZ did better than VEA though. That means emerging markets have been a drag on one's portfolio for a while now. It could mean that it is time to overweight emerging markets --- or not.
- Sat Oct 31, 2015 1:14 pm
- Forum: Personal Investments
- Topic: Investing disagreements with spouse
- Replies: 86
- Views: 11791
Re: Investing disagreements with spouse
Why not invite her to meet some of the gang at a future bogleheads event? Many of us Bogleheads are smart, comparatively wealthy, successful stock investors who were like her.
Most of us, over time, have learned that our trading success was partly luck, perhaps due to being young and smart and seeing successfully trends (this fades and is a one time event, you are only 20 once). Generally we have concluded that finding investing opportunities is not the best use of our time. Cognitive bias suggests her successes are remembered more strongly than her failures.
Perhaps respected outsiders would be more convincing?
Most of us, over time, have learned that our trading success was partly luck, perhaps due to being young and smart and seeing successfully trends (this fades and is a one time event, you are only 20 once). Generally we have concluded that finding investing opportunities is not the best use of our time. Cognitive bias suggests her successes are remembered more strongly than her failures.
Perhaps respected outsiders would be more convincing?
- Sat Oct 31, 2015 1:06 pm
- Forum: Personal Finance (Not Investing)
- Topic: Vanguard alert [Unclaimed property notice]
- Replies: 103
- Views: 19230
Re: Vanguard alert [Unclaimed property notice]
Per the prior link to the escheatment process, for those who are worried, all states have processes in place for a property owner, with proper documentation, to reclaim any escheated property. So even if your property was released to the state due to inactivity or another process, the owner has every ability to file with the state to reclaim their property. The process also has notification requirements, but it is extremely unlikely they would include an online banner ad. A secure message in an inbox of an online account, perhaps.
- Wed Oct 28, 2015 10:55 pm
- Forum: Personal Investments
- Topic: Employer making me close Vanguard Brokerage
- Replies: 24
- Views: 4024
Re: Employer making me close Vanguard Brokerage
Some firms have the conflict so no employee above a certain level can transact with the restricted entities. They usually have safe harbor entities to give their employees some choices.
- Wed Oct 28, 2015 10:06 pm
- Forum: Personal Investments
- Topic: Bogleheads thoughts on selling covered calls in ROTH
- Replies: 9
- Views: 1597
Re: Bogleheads thoughts on selling covered calls in ROTHp
I've done quite well selling covered calls, earning extra income.
I also got sold out of my position in Hansen Natural, now Monster Energy Drink about midway through its rise. I had 2000 shares. It never fell back to a position I was comfortable buying. Check out its 10 year results at this link:
http://www.msn.com/en-us/money/topstock ... ss-BBj2Nqx
I also got sold out of my position in Hansen Natural, now Monster Energy Drink about midway through its rise. I had 2000 shares. It never fell back to a position I was comfortable buying. Check out its 10 year results at this link:
http://www.msn.com/en-us/money/topstock ... ss-BBj2Nqx
- Tue Oct 27, 2015 9:32 am
- Forum: Personal Finance (Not Investing)
- Topic: Uncertainty as Federal Employee
- Replies: 54
- Views: 6815
Re: Uncertainty as Federal Employee
The value of a 100% of final salary pension in a 4% discount rate world is very high. This is a bit misleading. Government pensions tend to be generous, true. However, very few people get pension that's 100% of their final salary. For one thing, pension is often based on a 3-year highest average compensation (to prevent "pension spiking"). Second, you often need to work 40-50 years to get to 100%. Third, some agencies cap pension at 70-90% of final compensation. That said, if you work 30-35 years, the take-home pension check can easily match take-home pay as there's no more mandatory pension contributions, voluntary retirement plan contributions, FICA taxes, union dues plus a whole bunch of other small deductions. Also, retiree m...
- Mon Oct 26, 2015 9:31 pm
- Forum: Personal Finance (Not Investing)
- Topic: Uncertainty as Federal Employee
- Replies: 54
- Views: 6815
Re: Uncertainty as Federal Employee
Age 60 working for Mega Corp’s 39 years. Engineer. Canned, layed off, downsized, 3 times. Moved out of State 2 times. Nothing like coming home in the middle of the afternoon and telling your spouse that you have been canned. The look of fear, then tears. That is a memory that will stay with you forever. Keep that government job ! burt Same here. Corporations often treat you like dirt and ruin your life. They often target you when you turn 40. Keep a gov't job at all costs. It's a privilege that's getting more rare by the day. Don't leave your exclusive club. Believe me, all of my many, many fired or forced-to-be-temp-worker corporate colleagues over the years would give anything for some job security (or a job at all). Had a prestigious pa...
- Mon Oct 26, 2015 9:21 pm
- Forum: Investing - Theory, News & General
- Topic: Is Wall Street Eating Your 401k Nest Egg?
- Replies: 36
- Views: 4252
Re: "Is Wall Street Eating Your 401(k) Nest Egg?"
Yes. Living this. Bad plan actually impacting my sig other job decisions. Leaving a bad plan will save thousands per year.
- Mon Oct 26, 2015 7:20 pm
- Forum: Investing - Theory, News & General
- Topic: Do you think Ric Edelman is correct, never pay down mortgage
- Replies: 407
- Views: 111059
Re: Do you think Ric Edelman is correct, never pay down mortgage
Turn this inside out: Your house is paid off. Would you borrow money against the house to invest in the stock market? Probably not. If you want to lend me several hundred dollars at 3% to be paid back over 30 years, with the option to walk away at any time by giving you the equities I bought with your money, I will be more than happy to take your money. :D The risk related to foreclosure is not always a one sided equation, to the advantage in the homeowner. The impacts are actually much closer to buying stocks on margin. I have a friend who bought an excellent home, spent a lot to upgrade it, using an equity line of credit. He lost his job and had to move, just as the market had a dip. The bank of course needed payments and since he was le...
- Sun Oct 25, 2015 11:08 pm
- Forum: Personal Finance (Not Investing)
- Topic: What are your 2 retirement numbers?
- Replies: 260
- Views: 42476
Re: What are your 2 retirement numbers?
Check out the discussion forum for Mr Money Mustache if this is your philosophy. Lots of advice on expense cutting.
- Sun Oct 25, 2015 4:16 pm
- Forum: Personal Investments
- Topic: Tax efficiency for high income non sheltered indivudual
- Replies: 17
- Views: 2641
Re: Tax efficiency for high income non sheltered indivudual
First, congratulations on earning a high income and having the wisdom to save instead of buying a new tesla every other year at such a young age. Also, welcome to the community. Second, I would set up your IRA account right away and get that back door Roth contribution in the books. I kick myself for the many years I lost thinking I could not contribute due to large rollover IRA balances (now have personal 401k setup). Any good broker, schwab, fidelity or vanguard will walk you through it and help you set up what you need without trouble. My situation was not unlike yours and I am now in my 50+ age and now I hold maybe 30% bonds. Like the previous posters, I don't think you need such a large bond allocation. The goal of bonds is to stabiliz...
- Sun Oct 25, 2015 1:21 pm
- Forum: Investing - Theory, News & General
- Topic: Any books for how people become wealthy?
- Replies: 67
- Views: 10429
Re: Any books for how people become wealthy?
For a different angle, consider that wealth is the accumulation of assets. Your true wealth is therefore actually a mix of physical objects, recognized interests in human enterprises, recognized promises of future income via instruments like debts, notes (this is what money is), family assets, skills acquired, valuable information or knowledge, control over resources like land or water, etc. Any of these areas can be developed with effort. Work to earn cash, study to gain skills, buy land to control resources, etc. Also, it is important to understand that the basis for retaining your interest in these assets is build upon rules of law, scarcity in the market place and other factors beyond full control. All assets have a risk of lost value. ...
- Sun Oct 25, 2015 1:20 pm
- Forum: Investing - Theory, News & General
- Topic: Any books for how people become wealthy?
- Replies: 67
- Views: 10429
Re: Any books for how people become wealthy?
Removed duplicate post
- Sat Oct 24, 2015 3:28 pm
- Forum: Personal Finance (Not Investing)
- Topic: Age when you started to max out your retirement accounts?
- Replies: 177
- Views: 36909
Re: Age when you started to max out your retirement accounts?
22 -> 51
Realize I have been fortunate.
Realize I have been fortunate.
- Fri Oct 23, 2015 8:29 am
- Forum: Investing - Theory, News & General
- Topic: "Bogle: Tough Decade Ahead for Equity Investors"
- Replies: 135
- Views: 20273
Re: "Bogle: Tough Decade Ahead for Equity Investors"
The Gary Shilling interview that was posted recently (excellent 90 min well worth listening to) suggested that he feels once corporate and individual deleveraging is completed (rough estimate was 6-8 years), that a strong recovery and increased equity returns are likely at that time. He also thought that the 15+ years bull market for bonds may not be quite done.
This gives some hope that the 2% status is 'new normal' perhaps only for the next 5 years or so while the debt gets worked off and banks reach equilibrium and figure out how to profitably loan at the new capital requirement levels. Something to ponder at least.
This gives some hope that the 2% status is 'new normal' perhaps only for the next 5 years or so while the debt gets worked off and banks reach equilibrium and figure out how to profitably loan at the new capital requirement levels. Something to ponder at least.
- Wed Oct 21, 2015 4:49 pm
- Forum: Personal Investments
- Topic: Another Mortgage Thread With a Twist
- Replies: 29
- Views: 4233
Re: Another Mortgage Thread With a Twist
Based on the extra info, I would advise paying it off as a relatively safe bet investment return that makes sense. Risk tolerance is up to you, but with your wealth not having a mortgage is reasonable. Given your situation of having a substantial amount of index equities in your retirement accounts, I would go for it. It is conservative, but quite reasonable, assuming you have the discipline to not increase spending proportional to the drop in monthly expenses.
- Wed Oct 21, 2015 9:55 am
- Forum: Personal Investments
- Topic: Another Mortgage Thread With a Twist
- Replies: 29
- Views: 4233
Re: Another Mortgage Thread With a Twist
Maybe a little more info about your overall situation would help us advise you. On purely financial grounds, your logic is sound. However, some advise never paying off the mortgage to fund a larger equity position as a form of mild leverage.
Maybe you can provide figures on savings, equities owned in tax deferred, taxable investments, etc to give the forum a more complete picture. 4% for fixed is good right now, as you observe.
However, if you have to take capital gains or pay an early withdrawal penalty to get that 4% it could offset that $4k pretty fast.
Maybe you can provide figures on savings, equities owned in tax deferred, taxable investments, etc to give the forum a more complete picture. 4% for fixed is good right now, as you observe.
However, if you have to take capital gains or pay an early withdrawal penalty to get that 4% it could offset that $4k pretty fast.
- Wed Oct 21, 2015 9:44 am
- Forum: Investing - Theory, News & General
- Topic: Reading Larry Swedroe's book, very confused now...
- Replies: 77
- Views: 11014
Re: Reading Larry Swedroe's book, very confused now...
If you are not sure, I would advise sticking with what you have. If you are interested, continue learning about 'value tilting' by studying the topic some more. Read another book or two.
When you feel like you understand why Larry recommends that specific portfolio, then you might consider making a change based upon your own decision. I always advise people to understand the pros and cons of their options first, then to make their own choice.
Asking what you should do on this forum usually results in encouragement for you to educate yourself by reading the wiki, previous threads, etc. A search of this board should find lots of debates to read.
When you feel like you understand why Larry recommends that specific portfolio, then you might consider making a change based upon your own decision. I always advise people to understand the pros and cons of their options first, then to make their own choice.
Asking what you should do on this forum usually results in encouragement for you to educate yourself by reading the wiki, previous threads, etc. A search of this board should find lots of debates to read.
- Wed Oct 21, 2015 9:25 am
- Forum: Personal Investments
- Topic: Should I pay off a big chunk of my mortgage? Just getting started here.
- Replies: 10
- Views: 1961
Re: Should I pay off a big chunk of my mortgage? Just getting started here.
Welcome to the forum. I agree with the consensus to pay down the mortgage. Also, given the speed with which your anticipated disability income will come in, you might even investigate paying via a refinancing to a lower, variable rate product. A trustworthy mortgage broker might find a great deal. A 5/1 ARM (fixed rate for 5 years) is showing up as 3.625% for what you owe on bankrate.com, without any points or refi costs. A full variable rate might save even more, and I doubt interest rates rise before you could completely pay it off. I actually paid mine off this year and I was paying 2.75% (fully variable rate set at treasuries +2.2%). My recommended priorities for income would be: 1. Critical bills - minimal emergency fund 2. Obligations...
- Wed Oct 21, 2015 9:09 am
- Forum: Personal Investments
- Topic: Dad is retired, mom is planning to, advice?
- Replies: 12
- Views: 2403
Re: Dad is retired, mom is planning to, and their finances are messy!
Seems like they could save by refinancing and/or aggressively paying down the mortgage as a way to cut back expenses. I know folks like the security of a fixed rate, but with their equity I think they could find a very cheap variable rate source of cheaper funds. Worst case it seems they have the ability to pay it down using rental income pretty fast if they reduce spending. Could be a reverse mortgage candidate as well, as a way to tap home equity?
- Wed Oct 21, 2015 9:02 am
- Forum: Personal Consumer Issues
- Topic: Buying Prescription Eyeglasses Online
- Replies: 50
- Views: 7437
Re: Buying Prescription Eyeglasses Online
For the lowest cost provider, albeit with some quality risk, try http://www.goggles4u.com. I have bought pairs for under $10 when in sale, including sunglasses tints and shipping. Make sure you know your PD as well as RX numbers.
- Wed Oct 21, 2015 12:01 am
- Forum: Investing - Theory, News & General
- Topic: Dr Bernstein: Limit Muni Bond Exposure
- Replies: 110
- Views: 20034
Re: Dr Bernstein: Limit Muni Bond Exposure
I agree with Larry that there seems to be illiquidity premiums for small lot issues (though tough for a retail investor to grad due the the rigged mechanisms for pricing). It seems that this expands with the barely investment grade issues like BBB rated issues with shaky insurance, that I think the funds tend to avoid. I wish I could buy them at a true market rate, but even as a retail investor paying 2% over 'wholesale' there are some deals are out there. I happen to like that space, though perhaps it is chasing return by accepting uncompensated risk. With the smaller issues there can be another bonus in that the longer term issues seem to sometimes be slow to execute on a refinancing call option or are slow to call at the earliest date. A...
- Tue Oct 20, 2015 8:03 pm
- Forum: Personal Investments
- Topic: Wife’s inheritance actively managed, please help!!!
- Replies: 74
- Views: 8163
Re: Wife’s inheritance actively managed, please help!!!
Agree with previous advice. Leave money where it is. Coach your wife to approach the management firm and say something like "great job. we look forward to keeping our account with your firm and continuing a long relationship. Going forward I would like all additional capital, and distributed gains to be exclusively added to the following list of passive index funds in the ratios indicated. Feel free to stop charging any AUM fees for active management of the account, though we understand you may check in with us from time to time with suggestions. Since you will not need any staff time to implement the simple ratios we provided, we expect no AUM fees will be deducted."
- Tue Oct 20, 2015 7:37 pm
- Forum: Personal Finance (Not Investing)
- Topic: What are your 2 retirement numbers?
- Replies: 260
- Views: 42476
Re: What are your 2 retirement numbers?
I set mine in 1986 and they have not changed. $2M minimum, $6M goal, $10M is the I walk whenever I hit it number, unless work is more fun than play. These were estimated as 2014 dollars at the time.DireWolf wrote:What is your number that you will retire at once achieved? Mine is $4 million.
What is your minimum number that you would retire at if work became unbearable and you had to get out of the game? Mine is $2 million.
I would also need to own my home and be completely debt free with either scenario.