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Re: The boglehead way to buy furniture

Bogleheads don't pay expensive overhead, they go the Do It Yourself route: Lady's writing desk: http://home.comcast.net/~rodec/woodworking/desk/rodc_desk.jpg Kitchen table made decades ago when I was a college student and still in daily use: http://home.comcast.net/~rodec/woodworking/kitchen_table/k...
by Rodc
Thu Sep 18, 2014 12:11 pm
 
Forum: Personal Consumer Issues
Topic: The boglehead way to buy furniture
Replies: 50
Views: 3570

Re: Inflation Bonds - Staying the Course?

I hold individual TIPS of pretty long maturity. I don't use them to rebalance. I have an intermediate bond fund as well and that is used from time to time to rebalance when needed. I think of inflation as primarily a long term issue not a short term issue. As such I have no plans to sell regardless...
by Rodc
Thu Sep 18, 2014 12:03 pm
 
Forum: Investing - Theory, News & General
Topic: Inflation Bonds - Staying the Course?
Replies: 32
Views: 1912

Re: Hamilton watches, worth the money?

You are not going to wear your old shoes with this suit and watch combo are you? Nothing stands out like cheap shoes and a nice suit. If you are interested I believe there have been some threads on quality men's shoes (including your thread on suits so maybe you already have the shoes). And I think ...
by Rodc
Thu Sep 18, 2014 10:55 am
 
Forum: Personal Consumer Issues
Topic: Hamilton watches, worth the money?
Replies: 206
Views: 6285

Re: Inflation Bonds - Staying the Course?

I hold individual TIPS of pretty long maturity. I don't use them to rebalance. I have an intermediate bond fund as well and that is used from time to time to rebalance when needed. I think of inflation as primarily a long term issue not a short term issue. As such I have no plans to sell regardless ...
by Rodc
Thu Sep 18, 2014 10:42 am
 
Forum: Investing - Theory, News & General
Topic: Inflation Bonds - Staying the Course?
Replies: 32
Views: 1912

Re: Financial Psychology - Mind Over Money

The beauty of buy-and-hold investing is that it avoids behavioral mistakes by avoiding behavior instead of avoiding mistakes. The less you look at your investments and the fewer choices you have to make, the fewer opportunities there are for getting things wrong. So pick a simple plan and stay the ...
by Rodc
Wed Sep 17, 2014 12:15 pm
 
Forum: Investing - Theory, News & General
Topic: Financial Psychology - Mind Over Money
Replies: 78
Views: 3234

Re: Financial Psychology - Mind Over Money

One can almost predict one thousand, five hundred Bogleheads will weigh in from every conceivable perspective and the outcome will be that the reader will end up knowing enough about anchoring to write a PhD dissertation. To do a dissertation you need limited data about many people rather than a lo...
by Rodc
Wed Sep 17, 2014 12:11 pm
 
Forum: Investing - Theory, News & General
Topic: Financial Psychology - Mind Over Money
Replies: 78
Views: 3234

Re: How much you need to save as multiple of salary

. . . . . For living expenses of 40k a year, you need to save roughly a million dollars by retirement age unless you want to move in with your kids! http://www.cnbc.com/id/101724231 I think that it is better to set a target amount first and then calculate what percentage to save of your income to s...
by Rodc
Wed Sep 17, 2014 7:37 am
 
Forum: Investing - Theory, News & General
Topic: How much you need to save as multiple of salary
Replies: 51
Views: 6085

Re: Hamilton watches, worth the money?

I have to say this is a heck of a lot of second guessing and off topic worry about the OP for a mere $600 purchase. This is not a life threatening event. :) He is not asking about a $6,000 watch, or a $60,000 boat after all. Any time you spend 20x-50x-100x more than the base object... you have to s...
by Rodc
Tue Sep 16, 2014 3:21 pm
 
Forum: Personal Consumer Issues
Topic: Hamilton watches, worth the money?
Replies: 206
Views: 6285

Re: The dangerous practice of rebalancing...

555 wrote:Not sure if anyone pointed it out yet but "The dangerous practice of rebalancing" is just "clickbait".


I guess it worked. :)
by Rodc
Tue Sep 16, 2014 3:13 pm
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 180
Views: 11028

Re: Hamilton watches, worth the money?

I have to say this is a heck of a lot of second guessing and off topic worry about the OP for a mere $600 purchase. This is not a life threatening event. :)

He is not asking about a $6,000 watch, or a $60,000 boat after all.
by Rodc
Tue Sep 16, 2014 2:34 pm
 
Forum: Personal Consumer Issues
Topic: Hamilton watches, worth the money?
Replies: 206
Views: 6285

Re: Why do so many think their home is a foolproof investmen

I agree with MathWizard on this. For some people the best investment they can make is to get the highest mortgage they can afford because the only thing they will ever have is the equity in their home. Um, I'm not following this. Why should they get the largest mortgage they can afford if equity is...
by Rodc
Tue Sep 16, 2014 2:19 pm
 
Forum: Investing - Theory, News & General
Topic: Why do so many think their home is a foolproof investment?
Replies: 125
Views: 6117

Re: Why do so many think their home is a foolproof investmen

I think oftentimes it is over-consuming on housing. For example, a young couple buys a 3BR while they only need 1BR. Why not wait until you have kids and need the space? It depends on the details. Selling and moving have significant costs. If you are not going to have kids for 10 years, sure. If 2-...
by Rodc
Tue Sep 16, 2014 2:17 pm
 
Forum: Investing - Theory, News & General
Topic: Why do so many think their home is a foolproof investment?
Replies: 125
Views: 6117

Re: Hamilton watches, worth the money?

Nothing wrong with buying jewelry. But don't buy something because it is on sale. Figure out what you really want stylewise price be damned, then find the best deal on a watch that you really want. If you can afford that, great. If not, have to rethink. If you can't find a watch you really want that...
by Rodc
Tue Sep 16, 2014 10:58 am
 
Forum: Personal Consumer Issues
Topic: Hamilton watches, worth the money?
Replies: 206
Views: 6285

Re: College Savings vs Aid: 529s, UTMAs, FAFSA, and all tha

The National Merit Scholarship appears to be a recruiting tool for some universities. My kid was a semi-finalist. He got at least three full-ride four-year offers, all from schools you are likely to see on TV on New Year's Day. He had not applied to any of them. L. Just to make your life more diffi...
by Rodc
Tue Sep 16, 2014 10:08 am
 
Forum: Personal Finance (Not Investing)
Topic: College Savings vs Aid: 529s, UTMAs, FAFSA, and all that
Replies: 47
Views: 2073

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

General rule of thumb is to invest in retirement accts first then 529/ Coverdell. In terms of saving priorities your personal retirement first/ college second. How about a 529 versus paying down the mortgage? What are people's thoughts here? Dogma should always be examined. One does not need to &qu...
by Rodc
Tue Sep 16, 2014 9:54 am
 
Forum: Investing - Theory, News & General
Topic: "Why 97% of People Don't Use 529 College Savings Plans."
Replies: 110
Views: 10183

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

But the average state university is relatively inexpensive, so the middle class could always send at least the first kid to college without any financial aid. Perhaps, the news media has been harping on this so long while only mentioning the cost of the most expensive universities that we have been...
by Rodc
Tue Sep 16, 2014 9:44 am
 
Forum: Investing - Theory, News & General
Topic: "Why 97% of People Don't Use 529 College Savings Plans."
Replies: 110
Views: 10183

Re: How much you need to save as multiple of salary

Folks, most Bogleheads rate B+ to A+ on understanding of personal finance . Out THERE, in what is often laughingly called the real world, its closer to D- or F. To give an example If you understand imputed rent on an owner occupied house You get an "A" If you think you "earned" ...
by Rodc
Tue Sep 16, 2014 7:06 am
 
Forum: Investing - Theory, News & General
Topic: How much you need to save as multiple of salary
Replies: 51
Views: 6085

Re: How much you need to save as multiple of salary

Not really reasonable it seems to me. Needs to be tailored to your situation. If you are a dr and start late your guide posts will be different from someone who starts at 25. If social security covers half of what you want that is different from if it covers 20% of what you want. Much better to map ...
by Rodc
Mon Sep 15, 2014 8:35 pm
 
Forum: Investing - Theory, News & General
Topic: How much you need to save as multiple of salary
Replies: 51
Views: 6085

Re: Lump Sum Offer

Another way to look at it is whether the lump sum would cover an SPIA. If you took the offered lump sum and decided to purchase an annuity, how much would you get per month? If it's less than the prospective pension, then the lump sum is not worth it. Sounds good to me. The only caveat I would add ...
by Rodc
Mon Sep 15, 2014 7:35 pm
 
Forum: Personal Finance (Not Investing)
Topic: Lump Sum Offer
Replies: 15
Views: 1483

Re: The dangerous practice of rebalancing...

The only reason many made it at all was the never before seen tech bubble of 1980 to 2000 Just FYI, it was seen before in the 1959-1962 bubble... By the end of THAT bull market, any company with the name "-tronics" in it's name was being bid up to high prices even without earnings... just...
by Rodc
Mon Sep 15, 2014 6:56 pm
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 180
Views: 11028

Re: Why do so many think their home is a foolproof investmen

One of the problems with bogleheads is that you guys define successful investment solely in dollars and cents. As I am getting older I'm coming to the realization that it is way more than that. An economist is someone who know the cost of everything and the value of nothing. Or so someone once said...
by Rodc
Mon Sep 15, 2014 10:39 am
 
Forum: Investing - Theory, News & General
Topic: Why do so many think their home is a foolproof investment?
Replies: 125
Views: 6117

Re: Why do so many think their home is a foolproof investmen

One of the problems with bogleheads is that you guys define successful investment solely in dollars and cents. As I am getting older I'm coming to the realization that it is way more than that. An economist is someone who know the cost of everything and the value of nothing. Or so someone once said...
by Rodc
Mon Sep 15, 2014 8:43 am
 
Forum: Investing - Theory, News & General
Topic: Why do so many think their home is a foolproof investment?
Replies: 125
Views: 6117

Re: Why do so many think their home is a foolproof investmen

These never ending threads on renting vs buying are interesting to me. I started to be indoctrinated something like 50 years ago as far as the very desirable nature of buying a home. So, this has been going on for a very long time. I think home ownership has been over sold. But I also think in gener...
by Rodc
Mon Sep 15, 2014 8:09 am
 
Forum: Investing - Theory, News & General
Topic: Why do so many think their home is a foolproof investment?
Replies: 125
Views: 6117

Re: Why do so many think their home is a foolproof investmen

I am occasionally thinking of buying a condominium, but I am put off by the exorbitant current fees and no limit on the future fees. Someone will want to repaint the exterior, someone will propose to put new machines in the weight room, someone will insist on changing carpets in hallways--and every...
by Rodc
Mon Sep 15, 2014 8:01 am
 
Forum: Investing - Theory, News & General
Topic: Why do so many think their home is a foolproof investment?
Replies: 125
Views: 6117

Re: Buffett: Modern investment theory is horse-pucky

How do folks rectify their tilts with EMH? It seems contradictory. Where is the contradiction: higher risk means higher returns? Also, there are different risks. For example if one has a job that gets shaky in a recession then one may rationally tilt away from stocks that do poorly in a recession, ...
by Rodc
Mon Sep 15, 2014 7:50 am
 
Forum: Investing - Theory, News & General
Topic: Buffett: Modern investment theory is horse-pucky
Replies: 119
Views: 8937

Re: The dangerous practice of rebalancing...

Please forgive me for sounding (or being) simplistic. I've been accused of this before. After years of screwing around with my personal finances, I finally found peace a number of years ago as a Boglehead. Two things: 1. One of the overriding aspects of the BH philosophy is to set an allocation tha...
by Rodc
Mon Sep 15, 2014 7:45 am
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 180
Views: 11028

Re: The dangerous practice of rebalancing...

Wow. I'm a bit taken back by the shift in this thread. It started out being sarcastic and dismissive about anything other than constant-mix portfolio rebalancing, highlighting a few extreme points taken out of context from the article. Then we started bashing rebalancing... rebalancing isn't necess...
by Rodc
Sun Sep 14, 2014 7:28 pm
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 180
Views: 11028

Re: 100% Small and Value Tilting

Well, S&P 500 funds track TSM very well, with a shade less return and a shade less risk. Both seem to track return vs risk very closely. So in the large cap case a few hundred stocks gives functionally as much diversification as a few thousand. I would expect it would take more small cap stocks...
by Rodc
Sun Sep 14, 2014 2:17 pm
 
Forum: Investing - Theory, News & General
Topic: 100% Small and Value Tilting
Replies: 70
Views: 3907

Re: The dangerous practice of rebalancing...

^Yes. Longinvest is assuming throughout that risk should be measured using percentages. This is an honest and easy mistake to make. Most fund companies (including Vanguard) and investment books talk about risk in terms of stock percentages almost exclusively. It can be hard to see that there are ot...
by Rodc
Sat Sep 13, 2014 7:09 pm
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 180
Views: 11028

Re: Why do so many think their home is a foolproof investmen

In reality, most renters live in lesser places than what they would own, Is there any actual data to back that up? I don't have the data, it's an observation from having lived in rental apartments all my life and having many family members and friends homeowners. It's also logical. Homeowners are a...
by Rodc
Sat Sep 13, 2014 7:03 pm
 
Forum: Investing - Theory, News & General
Topic: Why do so many think their home is a foolproof investment?
Replies: 125
Views: 6117

Re: 100% Small and Value Tilting

JonnyFive, in the end it comes down to this: there are smarter ways to invest. If this were really a good idea, almost all young investors would be doing it. The fact that you are asking is a sign that you don't know enough to invest in such a portfolio. Risk is even riskier when you don't understa...
by Rodc
Sat Sep 13, 2014 6:54 pm
 
Forum: Investing - Theory, News & General
Topic: 100% Small and Value Tilting
Replies: 70
Views: 3907

Re: Why do so many think their home is a foolproof investmen

In reality, most renters live in lesser places than what they would own,


Is there any actual data to back that up?
by Rodc
Sat Sep 13, 2014 6:44 pm
 
Forum: Investing - Theory, News & General
Topic: Why do so many think their home is a foolproof investment?
Replies: 125
Views: 6117

Re: Why do so many think their home is a foolproof investmen

Then factor in the many hours they and their children put into maintaining the house. If you factor in the value of their time, ... If one enjoys working on houses (cars, whatever) it counts more like an enjoyable hobby. If one dislikes it, then it is more like an expense. This can be a big differe...
by Rodc
Sat Sep 13, 2014 5:11 pm
 
Forum: Investing - Theory, News & General
Topic: Why do so many think their home is a foolproof investment?
Replies: 125
Views: 6117

Re: 100% Small and Value Tilting

I suspect that over a 40+ year period odds are very good that any low cost portfolio of a a couple thousand or more stocks scattered across all the various sectors of the market and countries of the world will provide a return in line with the risk taken. This is true if you go TSM, SCV, or random m...
by Rodc
Sat Sep 13, 2014 5:05 pm
 
Forum: Investing - Theory, News & General
Topic: 100% Small and Value Tilting
Replies: 70
Views: 3907

Re: Why do so many think their home is a foolproof investmen

The reality that buying a home is an investment is not a matter of semantics or feelings or consideration. It's clear in the real world decision you make. You either rent and somebody else takes the risk and gets the benefit (of uncertain property appreciation minus uncertain operating expenses) of...
by Rodc
Sat Sep 13, 2014 4:53 pm
 
Forum: Investing - Theory, News & General
Topic: Why do so many think their home is a foolproof investment?
Replies: 125
Views: 6117

Re: The dangerous practice of rebalancing...

The key sentence in the article is perhaps :- "However, if you think through the strategic ramifications of portfolio rebalancing for middle and upper-middle income families approaching retirement, it just doesn't make a lot of sense." That narrows down the field somewhat as to which inve...
by Rodc
Sat Sep 13, 2014 10:26 am
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 180
Views: 11028

Re: Why do so many think their home is a foolproof investmen

Why do so many people believe that owning/buying a home is a surefire way to make money on it down the road? Hoe many is "many" and what evidence do you have to support this claim? I suspect many did think this before 2007, though I also suspect "many" did not at least in the sh...
by Rodc
Sat Sep 13, 2014 10:08 am
 
Forum: Investing - Theory, News & General
Topic: Why do so many think their home is a foolproof investment?
Replies: 125
Views: 6117

Re: Need advice on which tablet to buy

Original Kindle Fire? Anyone still use one? Or if not, when did you get rid of it and why? As noted in my post before yours, I have an original 8.9" if that fits your definition of "original" which I use most nights for reading books and maybe a little browsing and many mornings for ...
by Rodc
Fri Sep 12, 2014 8:28 pm
 
Forum: Personal Consumer Issues
Topic: Need advice on which tablet to buy
Replies: 44
Views: 2414

Re: The dangerous practice of rebalancing...

I've heard similar stuff before and don't agree with it. What's left unsaid in that article is what happens during 40 years of investing up to the time you are ready to retire. Does one stay in low-risk assets all through their 20's and 30's and avoid those risky stock funds? Horse-pucky, as anothe...
by Rodc
Fri Sep 12, 2014 8:19 pm
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 180
Views: 11028

Re: Dangerous practices

Better late than never to know that rebalancing is a way dangerous practice. Austintatious: You prove that the media is dangerous. This is what Vanguard research concluded: Portfolio rebalancing is extremely important because it helps investors to maintain their target asset allocation. By periodic...
by Rodc
Fri Sep 12, 2014 8:16 pm
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 180
Views: 11028

Re: The dangerous practice of rebalancing...

The basic idea is quite sound. If you have a ton of money relative to your income needs pretty much anything will work. If you have way too little money nothing will help. So let's think about someone with enough, but not a huge cushion. Should that person use any risky assets for their base need or...
by Rodc
Fri Sep 12, 2014 4:31 pm
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 180
Views: 11028

Re: Buffett: Modern investment theory is horse-pucky

Some nit-picking... Buffett talked about efficient-market hypothesis. EMH is a key part of modern portfolio theory. Is it, or are they actually different? Paul Hi Paul, I don't think any of this is news to you, but for folks new to this topic: My opinion is they are different, but often confused so...
by Rodc
Fri Sep 12, 2014 4:10 pm
 
Forum: Investing - Theory, News & General
Topic: Buffett: Modern investment theory is horse-pucky
Replies: 119
Views: 8937

Re: Need advice on which tablet to buy

Why do you need a new one at all? I have one of the first gen 8" Kindle Fires. I like it a lot. Bought for mucho off after the new ones came out, and since it does all I need (mostly reading books, news paper and some magazines), some browsing, little posting and email. I don't really like typi...
by Rodc
Fri Sep 12, 2014 3:59 pm
 
Forum: Personal Consumer Issues
Topic: Need advice on which tablet to buy
Replies: 44
Views: 2414

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

Getting to 200k in student loans is fairly easy. In our day, we did 80% student loans not only because we had to because of 9/11, but because of the spreads between the interest on the loans VS ROI was too great. These past three years and may be 2014, the spreads have been extremely favorable to u...
by Rodc
Fri Sep 12, 2014 3:46 pm
 
Forum: Investing - Theory, News & General
Topic: "Why 97% of People Don't Use 529 College Savings Plans."
Replies: 110
Views: 10183

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

Getting to 200k in student loans is fairly easy. In our day, we did 80% student loans not only because we had to because of 9/11, but because of the spreads between the interest on the loans VS ROI was too great. These past three years and may be 2014, the spreads have been extremely favorable to u...
by Rodc
Fri Sep 12, 2014 11:29 am
 
Forum: Investing - Theory, News & General
Topic: "Why 97% of People Don't Use 529 College Savings Plans."
Replies: 110
Views: 10183

Re: Neighborhood kid around 13 throwing rocks at my house

You guys are way too nice... Well, there are worse things to be than way too nice. I don't know the kid, and he might be Satan's spawn for all I know, but more than likely he's a spectrum kid. Walk a mile in his parents' shoes. That was my thoughts as well. Just a thought, no idea if it is true. I'...
by Rodc
Fri Sep 12, 2014 9:58 am
 
Forum: Personal Finance (Not Investing)
Topic: Neighborhood kid around 13 throwing rocks at my house
Replies: 55
Views: 2975

Re: Quit/retire - should I do this?

1st flaw in your plan: Forget about collecting unemployment insurance. Even if you were successful (your company agreed and did not dispute it) you would have to swear under perjury oath every 2 weeks that you were actively looking for a job. Since you don't plan to, you would be committing fraud u...
by Rodc
Fri Sep 12, 2014 9:10 am
 
Forum: Personal Finance (Not Investing)
Topic: Quit/retire - should I do this?
Replies: 41
Views: 3727

Re: Why is REIT only sector fund recommended in slice & dice

overvalued is your word not mine. Yes clearly if one were calculating expected returns such that TSM and REIT were equal, then not much point in swapping, hard to disagree with that. Thank you for the answer. If I go back to my example, If one were to completely drop REITS they could consider that ...
by Rodc
Mon Sep 08, 2014 4:27 pm
 
Forum: Investing - Theory, News & General
Topic: Why is REIT only sector fund recommended in slice & dice?
Replies: 113
Views: 7339

Re: Why is REIT only sector fund recommended in slice & dice

countmein, My comments were really not directed at you. I had someone else in mind. Rant: speak or shout at length in a wild, impassioned way I don't think you will find anything like a rant in my posts, though sometimes I do get a little wordy. I have been rational, calm, and dispassionate. The opp...
by Rodc
Sun Sep 07, 2014 7:32 pm
 
Forum: Investing - Theory, News & General
Topic: Why is REIT only sector fund recommended in slice & dice?
Replies: 113
Views: 7339

Re: Couples of diff ages: how do you handle asset allocation

Rodc, could you kindly point us to the paper that you are referring to? This is important for us all to understand. I'm curious how to allocate when there are needs that could extend for 50 years beyond our passings (true in our case since we're funding a trust). FWIW: here is the paper http://www....
by Rodc
Sun Sep 07, 2014 9:35 am
 
Forum: Investing - Theory, News & General
Topic: Couples of diff ages: how do you handle asset allocations?
Replies: 13
Views: 1158
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