Bogleheads.org

Yes you can retire. 2M in index funds, the dividend on that will cover your 80k per year w/o even touching the 500k in your tax advanged accouts or your home (as a source of funds if needed) that's a huge margin of safety. In addition if things went really wrong you could always get a job or cut bac...

2 points Point 1: My experience with interactive brokers margin calls were I got an email 10 min before the end of the trading day saying I was in violation of my margin requirements and needed to raise cash. I didn't realize the email came in and they sold down a position for me to get my account i...

Watch out, some of the recapture can come back as these as well from my understanding. its just not worth hold them in the IRA plain and simple

Even more now MT

Tax-advantaged accounts: IRA Roth IRA Non-deductible IRA Inherited IRA Inherited Roth IRA FSA if the use-it-or-lose-it rule is revoked HSA 401k Roth 401k After-tax 401k 403b Roth 403b After-tax 403b 457b solo 401k SIMPLE SEP IRA 529 pension deferred compensation plan UTMA personal residence I-bonds...

I think most people are thinking about this only in terms of their 401k/ira. If you expand it to all your tax-advantaged accounts (including PV of defined benefits like pension etc) as is implied by the post and you assume low interest rates that we have today for discounting purposes I think you wi...

As Value said, this is a massive over capacity. Supercharged demand between 2000 and 2010 (oil price run and china boom) led to huge day rates for shippers. Everyone financed huge backlogs of ships to take advantage of this and now that the supply has been brought to bear the over last few years, th...

This is the problem with being in that cult of ours, no easy/simple/blind re balance process...

If what you own still represents a significantly better value than your alternatives and you already have a sufficient buffer of cash / fixed income, why bother making a change?

Quick, everyone think of the first method by which stocks are priced by the marketplace! How many of you said earnings? How many said cash flow? How many said book value? I would say the most dominant pricing mechanisms are probably in that order, Earnings/Share -> CF/Share -> BV/Share. I mean unles...

Krugman's blog is a good place to start reading the demolition of David Stockman. Then you can follow the links out there to the detailed deconstructions...Ignore noise. And spurious 'theories'. Wait, now I'm confused. You say to read Krugman's blog and to ignore noise. How would I do this? +1 If w...

I use margin I use individual stocks I do run a relatively concentrated portfolio That said, remember im just some voice on the internet speaking here, but just hear me out here. back of the envelope math, -50% of your longs (1 large position) are underwater by about 5-8% -50% (the rest of your long...

Im about 5 years ahead of you and when I was your age I had similar aspirations, save a bunch of money early to get ahead of the game and then retire early so i could do what I felt like doing instead of running a 40 year career marathon. I guess it would be best served if I gave you this general ad...

This is a *long* thread. Would it be possible for you or someone else to summarize it in a few paragraphs or is it something I'm just going to have to read? Page one, paragraph one. For some technical reason, I'm not able to edit that post anymore. Net worth has steadily climbed to $350K since the ...

I used to do about 15-20 shows a year. Mostly Rock and Jam band stuff, now more folky underground stuff. Grew up in the 80s and 90s so had a lot of alternative / grunge influence early on. Got me into classic rock and the explosion of phish got me into jam bands for a bit. Last few shows I've been t...

Age: 30 years old Long Term View: Mixed bag. Employment: For the educated worker, things are looking up. While you old folks will stress the crap out of SS and Medicare etc, someone has to come in and take over for all the retiring baby boomers. For me however, I'm thinking of extreemly early pseudo...

I feel like this question if it doesnt apply to a lot of people now, will apply to a lot of younger people on this website during their lives since we got started on the right foot by saving early. Basically, If you start out by saving and investing in a conventional mix of bonds and stocks with a t...

Basically I want as much as possible with the minimum acceptable being $200,000 in Jan-2053. Let say 99.9% probability that the Balance >= $200,000. Any less would be considered a failure. But $300,000 would be better and $1,000,000 would be better still. There are no guarantees of any type of retu...

Agreed with the other responders, I have enjoyed your work and the debates with Small-Hi over the last 5 years that I've been reading the forums. Given your meticulus calculations my assumption is you stripped out from your portfolio returns, the value of new contributions and that adding these back...

Ok so file joinly to reduce the bracket thats an interesting idea I hadnt thought of lol. I guess I'm just completely new to the topic. Would that change if say there is a small business involved? I just assume that for simplicity if one runs a sole prop, that it would make sense to keep things sepe...

This is all hypothetical as I am not married and know very little about how taxes change once you are but are there any circumstances where it makes sense to file separately even though your married? For example, if one person is self employed and the other works for an employer, I would think this ...

I think this is a complete myth. There is no level at which a portfolio "takes off" due to supercharged compounding. Your gains are a percentage of your portfolio and that's it. Your losses are the same. The fact that it may gain more at some point than you might put in is not because the...

For the only states I've looked at, the coverage is limited based on the present value of the annuity contract. But, I've only looked at a few states, so I would strongly encourage you to check the actual rules for your own state before making any decisions. Also, wouldn't the PV of a fixed lifetim...

Say I were to buy an annuity today for 100 dollars and my state insures annuities up to 100 dollars. If 10 years from now the state still ensures 100 dollars of annuities per policy holder but the present value of that annuity is now valued at 125 dollars, does the insurance cover the annuity at the...

The annual results are (and will stay) online for 2009 , 2010 , 2011 , and 2012 . I suspect that's not your intention in asking though. You probably want those tables updated with closing prices as of today. I can do that pretty easily but there will be some significant holes because of the cumulat...

Hey Norbert, do you have the historical results from the last 3 years? would be interesting to see how our portfolios have done over time =)

Free Lunch Fund, now in its 4th year --

Long, BAC, AIG
Short, ZNGA, GRPN

[See below. -- admin LadyGeek]
Are we going to do another one again next year? This is always a fun exercise

As far as I'm concerned, pay less and pay later are the way to think about taxes. So most deferals will be spot on, I think the 401k is a great vehical. Do you mind telling us your growth assumptions for your investments? I actually dont quite understand your plan yet. in real dollars -- 550k to sus...

No, you should be very happy the market is doing well. if the market was crashing and burning you would be worried about your job, keeping one or getting one at your age. Good market returns are usually a reflection of good corporate earnings which means theres less pressure immediately on you as an...

Im glad I'm still early in the communication phase -- it gives me many years to keep kicking around different investing ideas. At one point I thought about doing a bare bones expense covering tips ladder as part of my portfolio but with the low real rates I've descided its way to risky. I just dont ...

Total net worth at that age your are in fantastic shape relative to your peers. Will you be ok to retire at 50-55? Thats up to you. You say if your income doesnt go up much more but neither do your expenses. Thats a monsterous amount of ifs right there largely dependant on 3 things. 1) life style 2....

given that Im a cheap boglehead who only earns a modest salary ( far below 100K ) I am estimating a real return of about 0-1% right now. This is because (US) stocks and (US) bonds are both relatively expensive right now. We have meager yields, slow growth, and global macro-economic headwinds of fisc...

Liquidity is the most important thing, followed by interest rates and equity ratio. Aside from that, looking long term in todays low interest rate era as long as you can lock in long term fixed rates asset accumulation may be preferable -- though this specifically has to do with my believe that we w...

I'm reasonably sure I am far above the majority of my peers in terms of savings/investments. If your household has more than $250,000 in retirement savings, then you are in the top 10% of households, according to the most recent EBRI annual survey. If you have more than 1 million, then you are in t...

I think I was almost 24, It had been a bit over a year with my first "real" job after college and I looked back and realized wow, I spent a year of my life working and I dont have anything in the bank to show for it... Thats when I went back to my friend at work and said, ok I guess I real...

I dont know anyone with that type of money to throw around, where they'll do it for the hell of it, but clearly were not going to come to an agreement on that point.

While those with failing business might not have had compitent owners, I bet each of those owners thought they were compitent enough to start that business.

I see that the rewards are ultimately possibly a lot higher as are the risks, but are those not the same more extreme outcomes that someone would take by investing such a sizable percentage of ones assets into a single stock? in both cases you are taking an ownership stake in a single venture. A ve...

Snowjob, You make a really good point. I have thought about this a lot and I think you are forgetting something. Typically CEOs make excellent compensation. If you are running your own business and are good at managerial and big picture thinking, you can pay yourself that big salary. If you own you...

I see that the rewards are ultimately possibly a lot higher as are the risks, but are those not the same more extreme outcomes that someone would take by investing such a sizable percentage of ones assets into a single stock? in both cases you are taking an ownership stake in a single venture.

I'm not sure it is in most cases. Example, My friend and his girlfriend have worked as cooks and they just recently bought a bagleshop. They now work the same obscene amount of hours (possibly more) to ensure this venture does well. Part of it is they wanted to own their own spot, but they coudl hav...

I've posed the first part of the question before, but I dont think I exteneded it to the second part... Basic premise was, if you have money, you can buy the entire US stock market (comprised of established businesses) for say 13-15x earnings and take a lot less risk than trying to build that start ...

So my girlfriend is starting her own business and is a pretty thrifty individual. Shes been buying a lot of the equipment she needs used, direct from former owners that she knows or has found on places like Craigs list. Im worrying however that when she goes to do her taxes she might not be able to ...

I know nothing about the company selling it, just that they "passed" on the deal and would only invest in 10-15k monthly income coming from at most 3 wells (not 100). If professionals in the industry are passing on it, there has to be a huge catch it. Just wanted some boglehead sanity to ...

I would not touch this likely scam but oil and gas interests can make money. My wife inherited a tiny Texas oil and gas royalty interest that has paid increasing royalties for decades. A great uncle bought it originally we think in the 1940's or earlier. Last few years it's been yielding $500-$1000...

Humans will adapt, I suppose we will all become vegitarians and abandon ethonol, and that would give us another several hundred years or so on the food front. Hydrocarbons? who knows, we could be more efficeint with how we use our resources and not make decisions based on the current market price of...

Thanks for the comments stats, I've never really looked at prefereds of REITs.

One of my friends shorted it on monday, boy was that a nice win. Im not going to talk you out of it. I want you to buy it, put it away as a long term investment and just see how it does. 1-2% of the total portfolio is nothing, not even a years inflation. If this is the one stock you really feel that...

Yeah I didnt think of restricteds & defered comp. I suppose excluding those as well.

Ok, for those of you who own individual stocks or bonds for whatever reason (Government backed bonds / CDs insured products not included) I pose the following question.

What is the largest position size (as a % of your total portfolio) you feel comfortable allocating to a single security and why