Bogleheads.org

A. Unless you are buying actual bonds, why do you think you are locked into a 2% return now? If you buy a bond fund, you are reinvesting the income at higher rates if rates go up. And the bond fund buys new bonds at new rates as old ones mature B. If you can believe you can time the bond market, wh...

That's my issue. Right there. It isn't that I think a 90% stock portfolio is particularly wise. It's that I say to myself, "Self, what's the point of investing in something with a negative real return for the long term?" Might as well spend the "bond portion" of the portfolio no...

Perhaps we young investors know that US Treasuries at 2% aren't going to get us to retirement in real dollars in a country with a major aging demographic problem and long term debt issues.

I'll pass on loaning Uncle Sam money at 2%, thanks.

All of these examples seem to be for static portfolios, without ongoing contributions or withdrawals. If we consider a retirement period from which withdrawals must be made to cover living expenses then there is much more risk since market losses to that extent must be realized. Although most poste...

I get what Clivus is saying, but borrowing adjustable rate money to invest a big chunk in bonds paying less than your "low cost of capital" and having interest rate risk on top of it seems really dumb. At a minimum, I'd rather call the giant mortgage your bond-like portion and invest that ...

You have $725,000 adjustable rate mortgage. This is a 10K a month payment right now, could double if interest rates get back to median historical levels. You want to use this adjustable rate debt as leverage to invest for retirement, during a period when the stock market is at an all time high and b...

Well, I'm concerned about the demographics of the country - i.e. shrinking birth rates among my generation and the huge debt and bills coming due with the baby boomer retirements. [Political comments removed by admin LadyGeek] I'm less concerned about social issues. I get concerned that the use of t...

The poker room. She was a shark!

OP, I would surrender the whole life and pay down the debt. If you don't like that, what is in your portfolio you mention? Is it tax advantaged or taxable? Personally if it is all in taxable investments, subject to capital gains and dividend taxes, I would sell it too and pay down the mortgage. No n...

Also, the bond crash should be brutal as the Fed quits buying all those US Treasuries.

Ok give me:

50% a 1-YR CD AT 1%
50% Vanguard total world stock fund

I think bonds will fall, so this should be good enough.

--Jeff

What I personally would like to see is a true "disruptive technology' that doesn't try to serve the same function as a traditional car. I'd like to see cheap all-electric cars that are intended to meet only local driving needs. For retirees who don't commute to work. Much better weather protec...

Hardiboard doesn't work well in soffits, either. Would recommend aluminum.

Prefinished hardiboard didn't work well for me.

The house has major concrete sprawling issues 5 years after installation.

My lumber yard is now pushing Louisiana Pacific siding as a better option with a 30-year warranty.

--Jeff

Take the money, pay off credit cards and student loans and make a monster principal payment on the house.

Also, spend $3k on a nice vacation and think well of Grandma while sipping a fruity drink at the swim-up bar in some all inclusive resort.

You'll have to break my sword over your knee and drum me out of the organization, you grammar nits!

I would invest in FDIC CDs then in taxable instead of bonds, no risk of loss of principle and when interest rates go back up and you can buy cheaper bonds later.

A lot of great caves in the area, Mammoth Cave and Marengo Cave come to mind.

The Kentucky Bourbon Trail is cool.

Lots of Museums in downtown Louisville on Main St.

Churchill Downs is a must see if they are racing.

It's your money, but 34% bonds at age 30 is too conservative for me, especially held in taxable.

Speaking as a commerical contractor with an energy star-rated home: If you're only going to be in the house another decade , I think the only thing that will pay for itself is to add more insulation to the attic. I would recommend blowing-in more fiberglass or cellulose in the attic. Usually this ca...

Get engaged before starting to dispense financial advise, would be my recommendation. Give her a investing book if she's a reader.

You're not losing much in the meantime.

Don't ever talk to the father about finances.

Life is short, keep the drama small.

If you have 400K in retirement accounts other than your pension and SS, why not withdraw 100K and pay off the house and get rid of that expense. Surely the mortgage interest rate is higher than what bonds are paying you? I'd keep the insurance at this point but I'm no expert. I imagine mortality tab...

Thanks everyone for the help!

I have 4 old $50 EE savings bonds from 87-90, birthday presents from my late Grandpa. I looked them up on the net, they're worth about $75 each. But Interestingly to me, it appeared they were earning 4% each according to the website. How does the interest work, and should I just keep them compared t...

See some on ebay at your price range.

Unless you're stealing a foreclosure for 60% of market price, I'd wait on buying the house.

It's better to rent a nice place and stay flexible until your life partner comes along. I did the opposite, and regret it.

Supply and demand. More people want to invest money in the market than withdraw it it right now.

I don't think Bonds are a good idea going forward at such low interest rates, seems like a small loser vs. inflation. Last fall we shifted our retirement accounts from Target 2020 31% Bonds to Target 2040 and 10% Bonds. The 10% should be enough for the re-balancing bonus and we have a 30 year invest...

Go to the Manatee Park, it's warm water coming off a power plant so there are dozens of manatees hanging out in the winter. Pretty cool. I think it's free other than a couple bucks parking.

BCS champ Alabama
Nebraska
Oklahoma
Notre Dame
West Virgnia

Why not pay off the house with taxable? It would be better than some bond funds.

(Because she'd just spend the mortgage payment, perhaps.)

We got married on the beach in a combo honeymoon/wedding. It cost $5,000. Her ring cost $6500. Shop around, and check out some reputable licensed pawn shops as well. More diamond for your buck. If you can do something similar, you'd have $25,000 left for your down payment. Maybe she'd like a house b...

I personally max out tax-advantaged Roths and my simple ira and then use the remaining money to pay down the mortgage. My wife and I can always withdraw the Roth money in an emergency, plus we have an emergency fund for liquidity, but I see no reason to let the government get a free ride on my divid...

I just logged into my account for the first time in a while, and checked the yield on Vanguard's Tax Exempt money market fund, where I stash my emergency cash. It is 0.12% The expense ratio is 0.17%. I suppose this means I am paying Vanguard now to hold my money? (I was making something like 4% duri...

Indiana has a property tax credit for homes with mortgages, similar to the homestead credit, so if you had an expensive home I guess this credit might make it worth holding a tiny mortgage.

Go to a couple local coin shops.

If you made 3% on your 900K you have in your vacation condo, you'd have $27,000.

You could stay at the greatest luxury resorts anywhere in the world for that kind of money for a couple weeks. Plus no property taxes and insurance.

Seems like a no-brainer to sell it.

1228

How is Buffett's bet of Index Funds against the Hedge Fund guys going?

(It would be hilarious if the Hedgies had a Madoff fund in their basket of Hedge Funds)

My advice would be to take the taxable investments and pay down 37K on the mortgage on the house or farm, as long as you have an emergency fund of 6 months of expenses outside of this account. Bonds are so cheap so that risk-free 3-4% post tax credit or whatever seems good to me. Then: Roth (25K): V...

Because of the new and forthcoming admiral shares I'd go to Total Stock Market and Total International to save a .3 % in fees.

Since my father was bent on getting the car in my name only we had the sales guy run the credit check just on me. When all was said and done I wound up with a 6-year 5.9% loan (horrible, I know). This was the only way I could afford the monthly payments in addition to my upcoming rent payments as I...

Take up small stakes Poker

I pay them at the same time so I don't lose/forget about the Feb. slip and wake up one day to a sheriff's sale on my lawn.

OP says his brother is blind, but the advice so far implies that he is mentally disabled. All we're told is that he's not good with money. If we're talking about a 40 year old of average intelligence and ability (minus sight) he should just need some advice and education, regarding the investment a...

At age 31, I don't count on social security as I hope to have enough in retirement assets to be disqualified by some government flunky since previous generations have saddled me with government debt. Previous generations, eh? Seems to me that a lot of that debt was built up in just the last 10 year...

At age 31, I don't count on social security as I hope to have enough in retirement assets to be disqualified by some government flunky since previous generations have saddled me with government debt. Otherwise, I'll just keeping maxing out what tax-advantaged accounts I can and pay off the house, a...

At age 31, I don't count on social security as I hope to have enough in retirement assets to be disqualified by some government flunky since previous generations have saddled me with government debt. Otherwise, I'll just keeping maxing out what tax-advantaged accounts I can and pay off the house, an...

Does Rick Ferri have a new estimate posted somewhere on various asset classes? I enjoyed that in All About Asset Allocation.

Pay off the house out of taxable. Then you'll really sleep better.