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Re: When people put all their eggs in the wrong basket

It could be said that many small-business owners are putting all their eggs in one basket too. Since many small business owners fail, it's likely that these would have turned out to be bad baskets. Is there a difference between putting most of your wealth in your own business, and putting most of y...
by avalpert
Fri Oct 24, 2014 6:47 pm
 
Forum: Investing - Theory, News & General
Topic: When people put all their eggs in the wrong basket
Replies: 222
Views: 22094

Re: Feasibility of just-in-time health insurance for expats

Aren't you covered by your wife's health insurance through her employer - does it not cover treatment in the US?
by avalpert
Thu Oct 23, 2014 11:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: Feasibility of just-in-time health insurance for expats
Replies: 7
Views: 432

Re: Renting vs owning

tj wrote:Why not buy a townhouse? I mean, if it's financially beneficial

Without knowing the current price and rent of the townhouse in question how on earth can you know that? It could be financially detrimental just as easily as it can be beneficial.
by avalpert
Thu Oct 23, 2014 11:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: Renting vs owning
Replies: 16
Views: 1468

Re: Gift ideas for kids?

Cardboard boxes in wrapping paper for the kids and cash for the parents to spend on them - it gives the kids something they will play with and enjoy for as long as nearly any toy you buy and the parents something useful to put towards the kids actual needs all at the same cost to you.
by avalpert
Thu Oct 23, 2014 5:36 pm
 
Forum: Personal Consumer Issues
Topic: Gift ideas for [1yo boy and 4yo girl]?
Replies: 9
Views: 513

Re: Close roth for tax deduction and open new one in same yr

Can I close the accounts, request a payout, and then turn around and open a new roth for each of us a few days later and still be able to deduct the losses? No, to deduct Roth losses on schedule A you need to have closed all your Roth accounts and calculate the loss based on all contributions to th...
by avalpert
Thu Oct 23, 2014 5:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: Close roth for tax deduction and open new one in same yr?
Replies: 9
Views: 537

Re: Gross Yearly Income needed in Retirement (Speculation)

How are people coming up with these numbers? 90K? 120k? Even $180k??? They are estimating how much they plan to spend in retirement probably based on what their current standard of living is plus some lifestyle adjustments - it isn't rocket science. What kinds of savings rate does one need to take ...
by avalpert
Thu Oct 23, 2014 4:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: Gross Yearly Income needed in Retirement (Speculation)
Replies: 94
Views: 6339

Re: Investment Vehicle for MBA Savings?

While you could use a 529 plan to save for this, the advantage of tax free growth over just a couple of years for such a small amount of money is pretty small. What I would really target if I were you, since you are planning to go part time (and presumably work part time) is to get your expenses dow...
by avalpert
Thu Oct 23, 2014 1:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investment Vehicle for MBA Savings?
Replies: 4
Views: 230

Re: Would you consider this a conservative portfolio?

No, definitely not conservative - a low quality bond international bond fund is not a conservative investment. It also isn't a particularly good mix for the level of risk it is taking on.
by avalpert
Thu Oct 23, 2014 10:27 am
 
Forum: Investing - Theory, News & General
Topic: Would you consider this a conservative portfolio?
Replies: 6
Views: 463

Re: More funds = more "efficient" rebalancing?

Rebalancing to what? What is it you are considering balanced?
by avalpert
Thu Oct 23, 2014 9:57 am
 
Forum: Investing - Theory, News & General
Topic: More funds = more "efficient" rebalancing?
Replies: 26
Views: 1231

Re: Why include International Index in AA?

StarbuxInvestor wrote:
Periods of underperform in solid ecomonies means buying shares cheaper then profiting from overperformance.

So I take it you have been over-weighting International for some time now then?
by avalpert
Thu Oct 23, 2014 9:51 am
 
Forum: Investing - Theory, News & General
Topic: Why include International Index in AA?
Replies: 39
Views: 2541

Re: Why include International Index in AA?

I would say international matters quite a lot, as Nis knows ;) Maybe not in terms of volatility, but in other ways certainly. I didn't cherry-pick the below - I just went back 5 years, then went back 5 years ago, to the day. The past 5 years (return on 10K invested): 96% vs. 22% http://i.imgur.com/...
by avalpert
Wed Oct 22, 2014 11:43 pm
 
Forum: Investing - Theory, News & General
Topic: Why include International Index in AA?
Replies: 39
Views: 2541

Re: Anchoring vs. Buy-and-Hold

In my 401K account, I have 100K in Russell 2000 Index Fund and nothing in SP500 Index Fund. I'm thinking that I should transfer 50K from R2000 to SP500. Should I do it in one transaction, or transfer $2,000/month over the next three years, or use some other threshold? Thanks. You already own all th...
by avalpert
Wed Oct 22, 2014 6:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: Anchoring vs. Buy-and-Hold
Replies: 15
Views: 1407

Re: Anchoring vs. Buy-and-Hold

In my 401K account, I have 100K in Russell 2000 Index Fund and nothing in SP500 Index Fund. I'm thinking that I should transfer 50K from R2000 to SP500. Should I do it in one transaction, or transfer $2,000/month over the next three years, or use some other threshold? Thanks. Why are you making the...
by avalpert
Wed Oct 22, 2014 4:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: Anchoring vs. Buy-and-Hold
Replies: 15
Views: 1407

Re: Creating a 401k for my company through Employee Fiduciar

FWIW, we would recommend clients charge a $25 quarterly account administrative fee to incentivize terminated employees to leave. In what way is an unnecessary $25 fee looking out for a plan participant's best interest. I am certainly no expert, but from what I understand, it is a business decision ...
by avalpert
Wed Oct 22, 2014 3:54 pm
 
Forum: Personal Finance (Not Investing)
Topic: Creating a 401k for my company through Employee Fiduciary
Replies: 85
Views: 3272

Re: Anchoring vs. Buy-and-Hold

Anchoring can apply to any investment - including broad index funds. Anything that you bought at a price or has a price assigned to it can be the target of unhelpful anchoring. And it could apply to buy and hold investors as well in certain contexts - say for example they hit their rebalancing bands...
by avalpert
Wed Oct 22, 2014 11:39 am
 
Forum: Investing - Help with Personal Investments
Topic: Anchoring vs. Buy-and-Hold
Replies: 15
Views: 1407

Re: Gross Yearly Income needed in Retirement (Speculation)

Wow, so many people are such spenders. I think 40k after taxes is plenty to do all those things you listed with no debt for us. Try that when real estate property taxes cost $15K per year for an "average" home. Or rent for a 1 bedroom efficiency apartment is $1,400 but a parking space cos...
by avalpert
Wed Oct 22, 2014 11:26 am
 
Forum: Personal Finance (Not Investing)
Topic: Gross Yearly Income needed in Retirement (Speculation)
Replies: 94
Views: 6339

Re: Health care tilt

Do you think the railroads saw nationalization coming before WWI? Airport security before 9/11? We aren't even talking about a black swan when just looking at the US history let alone what has happened in other developed nations. Terrible examples atop your paranoid fears. Railway nationalization o...
by avalpert
Tue Oct 21, 2014 10:04 pm
 
Forum: Investing - Theory, News & General
Topic: Health care tilt
Replies: 77
Views: 3716

Re: Health care tilt

Just to be contrarian, one could argue that investing in the healthcare sector is actually a great hedge to the risks of working in it. In any business, the rewards can go to capital or they can go to labor. If doctors get replaced by robots, who wins big? Healthcare companies. On the other hand, i...
by avalpert
Tue Oct 21, 2014 9:25 pm
 
Forum: Investing - Theory, News & General
Topic: Health care tilt
Replies: 77
Views: 3716

Re: Health care tilt

Sure but all it takes is the nationalization of the industry (and its profits) to turn it on its head. Probably shouldn't scare you away from working in it but should make you think twice about putting all your financial eggs in that same basket. Nationalization of the industry?! C'mon. Now we're g...
by avalpert
Tue Oct 21, 2014 9:22 pm
 
Forum: Investing - Theory, News & General
Topic: Health care tilt
Replies: 77
Views: 3716

Re: Why include International Index in AA?

Isn't the US something like 50% of the total world market? And aren't 50% of the S&P500 total earnings derived from foreign revenues/earnings? So the S&P500 is already aligned with total world weightings - at least for the largest weighted component (US). A total world index/fund such as VT...
by avalpert
Tue Oct 21, 2014 9:06 pm
 
Forum: Investing - Theory, News & General
Topic: Why include International Index in AA?
Replies: 39
Views: 2541

Re: Health care tilt

As a physician, none of the things mentioned above scare me at all. Maybe they should, but they don't. We practice medicine in a completely different way than just 10 years ago. Things have changes in a multitude of ways since I start med school. However, what really matter is that health care util...
by avalpert
Tue Oct 21, 2014 8:56 pm
 
Forum: Investing - Theory, News & General
Topic: Health care tilt
Replies: 77
Views: 3716

Re: Gross Yearly Income needed in Retirement (Speculation)

Point being, it costs money to go to this Kruger Park in South Africa for a couple weeks; I've not been, but other Bogleheads apparently have. It doesn't have to cost much at all to go to Kruger Park for a couple of weeks - rent a car (don't even need 4x4 there) and a tent, self drive around the pa...
by avalpert
Tue Oct 21, 2014 8:53 pm
 
Forum: Personal Finance (Not Investing)
Topic: Gross Yearly Income needed in Retirement (Speculation)
Replies: 94
Views: 6339

Re: Gross Yearly Income needed in Retirement (Speculation)

I'm targeting $150k a year which is in line with our current spending (though we would be trading spending on kids, including private school, for spending on us). I'm 15 years from my target early retirement date and am quite certain much will change but that is my current SWAG.
by avalpert
Tue Oct 21, 2014 8:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: Gross Yearly Income needed in Retirement (Speculation)
Replies: 94
Views: 6339

Re: Gross Yearly Income needed in Retirement (Speculation)

Point being, it costs money to go to this Kruger Park in South Africa for a couple weeks; I've not been, but other Bogleheads apparently have. It doesn't have to cost much at all to go to Kruger Park for a couple of weeks - rent a car (don't even need 4x4 there) and a tent, self drive around the pa...
by avalpert
Tue Oct 21, 2014 8:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: Gross Yearly Income needed in Retirement (Speculation)
Replies: 94
Views: 6339

Re: Health care tilt

Do you want to be a primary care physician or hospital operator these days? No. Do you want to be in biotech or instruments inventing new drugs and robots? Absolutely. The pertinent question is do I want to be in them to a higher/lesser degree than the degree to those whose profession is to analyze...
by avalpert
Tue Oct 21, 2014 7:17 pm
 
Forum: Investing - Theory, News & General
Topic: Health care tilt
Replies: 77
Views: 3716

Re: What Are We Doing To Our Young Investors?

It eliminates the illusion that what is automatically chosen will be specifically appropriate for that person. TR funds imply they are appropriate for people in that age range. Balanced fund makes no such claim. But 'default investment' provides the same illusion - at least based on the research th...
by avalpert
Tue Oct 21, 2014 5:30 pm
 
Forum: Investing - Theory, News & General
Topic: What Are We Doing To Our Young Investors?
Replies: 29
Views: 4102

Re: What Are We Doing To Our Young Investors?

I can agree that the automatic enrollment option should probably not be a TR fund, but rather something more like a balanced fund. Just because these funds are marketed towards people of a certain age, that doesn't mean that they are appropriate for someone because they are that age. How does a sin...
by avalpert
Tue Oct 21, 2014 5:26 pm
 
Forum: Investing - Theory, News & General
Topic: What Are We Doing To Our Young Investors?
Replies: 29
Views: 4102

Re: What Are We Doing To Our Young Investors?

I can agree that the automatic enrollment option should probably not be a TR fund, but rather something more like a balanced fund. Just because these funds are marketed towards people of a certain age, that doesn't mean that they are appropriate for someone because they are that age. How does a sin...
by avalpert
Tue Oct 21, 2014 4:56 pm
 
Forum: Investing - Theory, News & General
Topic: What Are We Doing To Our Young Investors?
Replies: 29
Views: 4102

Re: Stocks as long term investments

because you are simply putting more money in J&J than its market cap would indicate. Off topic from the OP, but a genuine question - if I've $20,000 to add to stocks and I fancy tilting to tech sector stocks, why should I drop three times as much into MSFT than as much invested into Cisco simpl...
by avalpert
Tue Oct 21, 2014 4:27 pm
 
Forum: Investing - Theory, News & General
Topic: Stocks as long term investments
Replies: 52
Views: 3631

Re: "Differentiated" vs. "Segregated" asset allocation

I must be missing something because this looks like one of the worst analysis I have ever seen. Unless I am doing my math wrong it appears as though they didn't just move around where assets were located but adjusted the total risk exposure of the portfolios - the 'differentiated' approach has highe...
by avalpert
Tue Oct 21, 2014 4:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: "Differentiated" vs. "Segregated" asset allocation
Replies: 3
Views: 274

Re: What Are We Doing To Our Young Investors?

Having said all this, I really wonder if these investors are removing money because of downturns or just because they needed some money and didn't have any other funds--nothing for short term goals, nothing for emergencies. Or because they assumed it was part of severing ties with their previous em...
by avalpert
Tue Oct 21, 2014 3:16 pm
 
Forum: Investing - Theory, News & General
Topic: What Are We Doing To Our Young Investors?
Replies: 29
Views: 4102

Re: Health care tilt

So my last post on this. If you can compare healthcare to railroads or car manufacturing then we don't have much to discuss. Next you will tell me food may go out of style or maybe even water. Food may never go out of style but that doesn't mean concentrating on it as a financial sector was ever se...
by avalpert
Tue Oct 21, 2014 1:13 pm
 
Forum: Investing - Theory, News & General
Topic: Health care tilt
Replies: 77
Views: 3716

Re: Health care tilt

If you want to believe that doctors (which we have a shortage of) may have to worry about finding a job, be my guest. Right, and railroads are the future of transportation, Detroit the new capital of manufacturing and a law degree a guaranteed ticket to a job. That disruptions to sectors tend to bl...
by avalpert
Tue Oct 21, 2014 10:15 am
 
Forum: Investing - Theory, News & General
Topic: Health care tilt
Replies: 77
Views: 3716

Re: Health care tilt

Healthcare is everything you said about it and this human capital thing is just plain silly when you try to apply it to a doctor in the united states. You will be able to stay employed and if you can't, it won't be because of the healthcare industry. Geeze, thinking your industry is immune to tail ...
by avalpert
Mon Oct 20, 2014 8:09 pm
 
Forum: Investing - Theory, News & General
Topic: Health care tilt
Replies: 77
Views: 3716

Re: 50/50

Check it against to what end? A 50/50 spit of Total Stock and Total Bond is a perfectly fine benchmark for a 50/50 portfolio - why would you need a separate fund? If you truly want to set and forget and never deal with rebalancing bands.... or irrational fear. it's why a lot of target date funds ar...
by avalpert
Mon Oct 20, 2014 9:45 am
 
Forum: Investing - Help with Personal Investments
Topic: 50/50
Replies: 7
Views: 1165

Re: Is the backdoor Roth IRA legal?

JustinR wrote:I know that technically it is. But is it really?

There is no distinction between something being technically legal and really legal - all law is is a set of technical rules.

If you mean to ask is it ethical that is a different debate but probably not appropriate for this forum.
by avalpert
Sun Oct 19, 2014 8:25 pm
 
Forum: Investing - Theory, News & General
Topic: Is the backdoor Roth IRA legal?
Replies: 13
Views: 1733

Re: WSJ's Jon Clements: "How to Make Your Savings Outlive Yo

P.S. We spend our working lives intuitively adjusting our spending to our somewhat variable and unpredictable income. Nobody ever suggests running a Monte Carlo analysis of one's future earnings. Nobody ever suggests that your spending at age 25 should be governed by statistical projections of your...
by avalpert
Sun Oct 19, 2014 8:13 pm
 
Forum: Investing - Theory, News & General
Topic: WSJ's Jon Clements: "How to Make Your Savings Outlive You"
Replies: 14
Views: 2759

Re: 50/50

Check it against to what end? A 50/50 spit of Total Stock and Total Bond is a perfectly fine benchmark for a 50/50 portfolio - why would you need a separate fund?
by avalpert
Sun Oct 19, 2014 8:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: 50/50
Replies: 7
Views: 1165

Re: Why not 100% Stocks?

Problem is your house doesn't generate income Sure it does, just because you pay it to yourself doesn't change that. You could always rent it out and get a rental yourself. and can't be partially sold. Real estate isn't the only investment that is illiquid - if it weren't their 'home' but instead a...
by avalpert
Sun Oct 19, 2014 2:35 pm
 
Forum: Investing - Theory, News & General
Topic: Why not 100% Stocks?
Replies: 274
Views: 20509

Re: Health care tilt

I absolutely see that argument and makes sense to me. On the other hand I believe investing in an area of inside knowledge can be smart also. Like if I worked at Goldman Sachs or something I would probably invest in the financial sector or maybe trade the index etc. I tend to follow the industry cl...
by avalpert
Sun Oct 19, 2014 9:24 am
 
Forum: Investing - Theory, News & General
Topic: Health care tilt
Replies: 77
Views: 3716

Re: Health care tilt

This is a fair point. However, I do not hold the total stock fund in large amounts because of my preference for a slice and dice portfolio. I am simply making the argument that a separate health care fund is a valuable "slice" in that philosophy. I wish there was more research available o...
by avalpert
Sun Oct 19, 2014 9:18 am
 
Forum: Investing - Theory, News & General
Topic: Health care tilt
Replies: 77
Views: 3716

Re: What's a good fund to do a backdoor Roth IRA with?

Why would you take yourself out of the market if you don't have to? Sow hat if it gains/loses that is why you are investing in the fund of your choice to begin with - worst case is it goes up a bit in the short period of time it takes to transfer and you pay a little bit of taxes on the gains.
by avalpert
Sun Oct 19, 2014 9:09 am
 
Forum: Investing - Theory, News & General
Topic: What's a good fund to do a backdoor Roth IRA with?
Replies: 5
Views: 574

Re: Why not 100% Stocks?

the term "100% stocks" is a simplification that describes only the allocation of one's investment portfolio, and when a person says she is 100% stocks, she shouldn't need to defend herself against the definition police. People can say whatever they want and don't have to defend themselves...
by avalpert
Sat Oct 18, 2014 11:01 pm
 
Forum: Investing - Theory, News & General
Topic: Why not 100% Stocks?
Replies: 274
Views: 20509

Re: Can I reduce my *retirement* savings rate?

So I'll give you my honest feedback after reading this thread and I'm not trying to be negative here. I have a similar issue. -I think you are over-analyzing your future retirement. The fact that you mull over it daily and are pouring through calculations and spreadsheets, this can become unhealthy...
by avalpert
Fri Oct 17, 2014 1:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: Can I reduce my *retirement* savings rate?
Replies: 35
Views: 3316

Re: When bogleheads do TLH

Rather than a percentage, my threshold is absolute in dollars. I use $3000 of loss to trigger a TLH -- (1) because that is how much you can deduct on your taxes in one year (2) makes it easy to see when to do TLH. I recently did one with the TISM fund when it crossed $3000 mark. I'm not sure that m...
by avalpert
Fri Oct 17, 2014 1:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: When bogleheads do TLH
Replies: 6
Views: 847

Re: Can I reduce my *retirement* savings rate?

I think you are overcomplicating this question - you certainly aren't the first family to try to decide if you should be a single-income or dual-income household. Really it boils down to can you live on your salary alone and still be able to save enough for full retirement saving 20% of gross income...
by avalpert
Fri Oct 17, 2014 11:29 am
 
Forum: Investing - Help with Personal Investments
Topic: Can I reduce my *retirement* savings rate?
Replies: 35
Views: 3316

Re: Tax gain harvest smaller gains from taxable to fund 529s

I wouldn't, don't really see an advantage to paying taxes now that can be deferred for later and you can put new money into a 529 over time instead of increasing your taxable portfolio.
by avalpert
Thu Oct 16, 2014 10:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax gain harvest from taxable to fund 529s / Roth IRAs?
Replies: 3
Views: 328

Re: How did you get from $1M to $10M

I would try roulette, baccarat or craps
by avalpert
Thu Oct 16, 2014 4:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: How did you get from $1M to $10M
Replies: 46
Views: 4032

Re: Balance Transfer Credit Card 1% fee, no APR for 1 year

If you miss even one of their requirements, you'll lose big doing this. They have dozens of people thinking about how to get your wealth transferred to them. You are one person trying to think of the reverse. It is a fool's game in the long run. I don't think this is necessarily fair - they have do...
by avalpert
Thu Oct 16, 2014 4:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: Balance Transfer Credit Card 1% fee, no APR for 1 year
Replies: 9
Views: 349

Re: Balance Transfer Credit Card 1% fee, no APR for 1 year

Currency risk isn't enough for you? For ~$150 in gains its hard to justify the effort and risk.
by avalpert
Thu Oct 16, 2014 3:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: Balance Transfer Credit Card 1% fee, no APR for 1 year
Replies: 9
Views: 349
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