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Re: Why not 100% CD's?

The risk of being in 100% CDs with a current real return of 0% is if unexpected inflation shows up your purchasing power will be crushed. Thanks John. But let me ask you this, if inflation became an issue, wouldn't CD rates be rising as well. Stocks are no guarantee against inflation. Rising rates ...
by dbr
Fri Sep 26, 2014 12:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why not 100% CD's?
Replies: 73
Views: 4949

Re: ISOs, AMT, Taxes...Oh My!

There is a book that may be helpful, called "Consider Your Options: Get the Most from Your Equity Compensation." It covers lots of details about situations like this. It's well worth the cost, in my opinion. Turbotax should be able to handle this - it was able to handle it when I exercise...
by dbr
Fri Sep 26, 2014 11:56 am
 
Forum: Investing - Help with Personal Investments
Topic: ISOs, AMT, Taxes...Oh My!
Replies: 6
Views: 437

Re: Why not 100% CD's?

If you've already got enough money, sure. Though to guarantee you keep up with unexpected inflation (as another poster mentioned) you might want inflation protected securities. If I was in retirement and had enough money I'd be 100% in I-bonds and individual TIPS. To me that would be an even lower ...
by dbr
Fri Sep 26, 2014 10:54 am
 
Forum: Investing - Help with Personal Investments
Topic: Why not 100% CD's?
Replies: 73
Views: 4949

Re: Stubbornly Non-Boglehead Husband. What To Do?

I think they are so rich, and live cheaply enough that it just doesn't matter how much he loses. Therefore, their differences with how they handle money shouldn't really affect their relationship. Maybe so. The essence of her issue is in this sentence from the OP: "It kills me to see him makin...
by dbr
Fri Sep 26, 2014 10:53 am
 
Forum: Investing - Theory, News & General
Topic: Stubbornly Non-Boglehead Husband. What To Do?
Replies: 122
Views: 7511

Re: Why not 100% CD's?

If you have enough money to support your retirement at that return in the face of possible inflation you could put everything in CD's. A concern would be to distribute the holdings accross enough banks to keep full FDIC coverage. There aren't very many people who are so intolerant of volatility yet ...
by dbr
Fri Sep 26, 2014 10:43 am
 
Forum: Investing - Help with Personal Investments
Topic: Why not 100% CD's?
Replies: 73
Views: 4949

Re: ISOs, AMT, Taxes...Oh My!

You can get back the full AMT on an ISO exercise using the AMT credit on this form: http://www.irs.gov/uac/Form-8801,-Credit-for-Prior-Year-Minimum-Tax%E2%80%94Individuals,-Estates,-and-Trusts Also see: http://www.amtadvisor.com/Minimum_Tax_Credit.html However, I agree that in case of doubt or confu...
by dbr
Fri Sep 26, 2014 10:38 am
 
Forum: Investing - Help with Personal Investments
Topic: ISOs, AMT, Taxes...Oh My!
Replies: 6
Views: 437

Re: ISOs, AMT, Taxes...Oh My!

You should look up the rules for AMT credit:

http://www.fairmark.com/amt/credit.htm
by dbr
Fri Sep 26, 2014 10:26 am
 
Forum: Investing - Help with Personal Investments
Topic: ISOs, AMT, Taxes...Oh My!
Replies: 6
Views: 437

Re: Stubbornly Non-Boglehead Husband. What To Do?

What would be the situation if the husband has to declare personal bankruptcy?
by dbr
Thu Sep 25, 2014 5:28 pm
 
Forum: Investing - Theory, News & General
Topic: Stubbornly Non-Boglehead Husband. What To Do?
Replies: 122
Views: 7511

Re: Question about medicare, myself, and spouse

Are you still employed and do you currently have health insurance through that employer (you and/or spouse)? If so, it might depend upon what their terms are about what to do when one reaches 65. RM Yes, the first question is whether or not you will still be employed after your reach 65. If so, you...
by dbr
Thu Sep 25, 2014 1:57 pm
 
Forum: Personal Consumer Issues
Topic: Question about medicare, myself, and spouse
Replies: 9
Views: 681

Re: Advice for student buying cheap used car

Depending on the situation not owning a car at all might be an option. One cringes at the idea of putting a young person in a beater that will be a money pit and unreliable, prone to leaving one stranded at awkward times, and not safe. Just keeping up good tires and brakes, new battery and so on can...
by dbr
Thu Sep 25, 2014 10:28 am
 
Forum: Personal Consumer Issues
Topic: Advice for student buying cheap used car
Replies: 54
Views: 3130

Re: Lump sum or monthly check at retirment

Oh, and I don't know how the $35k would be taxed, so that might affect the sum that actually gets invested which would likely lower the monthly payout in retirement. Also, I believe SWRs are adjusted for inflation. Is the pension distribution? Someone can let us know if this kind of payout cannot g...
by dbr
Thu Sep 25, 2014 10:05 am
 
Forum: Personal Finance (Not Investing)
Topic: Lump sum or monthly check at retirement
Replies: 20
Views: 1275

Re: rental income

In general buying rental property as an investment can make sense. There is much more to it than "rental income." I would suggest you read up on the subject, talk to others who are doing this, and read replies you will get here. I would suggest not attempting such a thing until you underst...
by dbr
Thu Sep 25, 2014 9:58 am
 
Forum: Investing - Help with Personal Investments
Topic: rental income
Replies: 2
Views: 362

Re: Calculating Rolling Returns

The return for a period is usually defined to be the compound annual growth rate, which see here: http://en.wikipedia.org/wiki/Compound_annual_growth_rate The tricky part is finding out what the final value of an investment would be with dividends reinvested. To do that you would have to access the ...
by dbr
Wed Sep 24, 2014 5:51 pm
 
Forum: Investing - Theory, News & General
Topic: Calculating Rolling Returns
Replies: 14
Views: 837

Re: No Vanguard in our 401k

I've been speaking with my CFO about our 401k and the available funds. We currently use Oppenheimer funds but are switching to a new provider. I expressed to him the benefit of using Vanguard funds and this is the reply he received regarding Vanguard: As far as Vanguard funds go, PAI has a list of ...
by dbr
Wed Sep 24, 2014 5:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: No Vanguard in our 401k
Replies: 10
Views: 929

Re: What should one pay for a student cello?

For student musicians talking around to other families, music schools, especially Suzuki, and to instrument shops and music stores can result in finding used instruments that can be sold on in return. You may get a better instrument for the money or at least be in the loop for recovering the cost. W...
by dbr
Wed Sep 24, 2014 2:09 pm
 
Forum: Personal Consumer Issues
Topic: What should one pay for a student cello?
Replies: 10
Views: 687

Re: My IPS and rebalancing

When the market crashes a lot is when "it hasn't happened yet" does happen. At that point you sell some bonds and buy some stocks. As an exercise for the reader one should compute how much buying and selling that is for any given % decline in the market. It might be surprising how much mov...
by dbr
Wed Sep 24, 2014 10:43 am
 
Forum: Investing - Help with Personal Investments
Topic: My IPS and rebalancing
Replies: 12
Views: 1060

Re: What's your one big takeaway from the Crash of 2008?

My takeaway is that the rapid recovery and subsequent course of the market could deceive people on two counts: 1. That market crashes are harmless because rapid recovery follows. This is a very dangerous idea. 2. That holding stocks is really risky because the market can crash. This is also a danger...
by dbr
Wed Sep 24, 2014 10:33 am
 
Forum: Investing - Theory, News & General
Topic: What's your one big takeaway from the Crash of 2008?
Replies: 310
Views: 45011

Re: I've made it (almost)

I think you have the symptoms of not having things to do in retirement that you can look forward to. Life should be lived by what pulls you forward rather than by what keeps you where you are. How about it? To answer the question about why to keep working, I might have gone sooner but I waited to se...
by dbr
Wed Sep 24, 2014 10:27 am
 
Forum: Investing - Help with Personal Investments
Topic: I've made it (almost)
Replies: 9
Views: 2135

Re: Is having 100% large cap not diverse enough?

a) Their approach is legitimate. Their fee is something to be avoided even if going that way because other advisors with access to DFA funds charge 0.4% and below. b) I provided a link to Trev H's thread which answers this question. Please attend very carefully to the comments above in using the wo...
by dbr
Wed Sep 24, 2014 10:18 am
 
Forum: Investing - Help with Personal Investments
Topic: Is having 100% large cap not diverse enough?
Replies: 49
Views: 2818

Re: Mango Money as Fixed Income

Oh no I agree that it's an asset. But when I wrote my IPS, I assumed that fixed income assets would have compounding returns. Maybe that's my problem? From the point of view of asset allocation "fixed income" serves the purpose of diluting the volatility of the overall portfolio because m...
by dbr
Wed Sep 24, 2014 10:09 am
 
Forum: Investing - Help with Personal Investments
Topic: Mango Money as Fixed Income
Replies: 5
Views: 649

Re: Mango Money as Fixed Income

The non-compounding of interest can be ignored. How does that cause the savings involved to not be an asset? However, it doesn't seem to make any sense that your bond allocation depends one way or another on $5000 either way. If it does then probably you are young and don't have a lot in assets yet....
by dbr
Wed Sep 24, 2014 9:30 am
 
Forum: Investing - Help with Personal Investments
Topic: Mango Money as Fixed Income
Replies: 5
Views: 649

Re: Stubbornly Non-Boglehead Husband. What To Do?

I'm not sure there is a problem either. In any case the solutions range from be happy with what you have, which apparently is a lot, to escaping from the situation by divorce. In any case be sure you know what you want because you can end up getting what you ask for. One obvious possibility is joint...
by dbr
Wed Sep 24, 2014 9:21 am
 
Forum: Investing - Theory, News & General
Topic: Stubbornly Non-Boglehead Husband. What To Do?
Replies: 122
Views: 7511

Re: Sale of a home between boyfriend and girlfriend.

cheese_breath wrote:Now that she's decided what she's going to do I'd be interested in knowing how he reacts to it.


Indeed. Fair isn't about what she decides but about what THEY agree to.
by dbr
Wed Sep 24, 2014 9:07 am
 
Forum: Personal Finance (Not Investing)
Topic: Sale of a home between boyfriend and girlfriend.
Replies: 79
Views: 5519

Re: 3 Fund Portfolio Vs. Vanguard Advisor Recommendations

So many different answers! I'm not sure there is such a thing as a Boglehead! :oops: But I do get the big picture, that by taking 90% of the expense out of management of my portfolio and by moving from actively managed to largely indexed funds I can probably add myself to the legions of "Bogle...
by dbr
Wed Sep 24, 2014 9:06 am
 
Forum: Investing - Help with Personal Investments
Topic: 3 Fund Portfolio Vs. Vanguard Advisor Recommendations
Replies: 15
Views: 1631

Re: Risk and the Trinity Study

The Trinity Study may have weighed all market conditions based on history, but it only looked at 70 years of history for one country. I wonder what the results would look like for the 1926-1995 period for Germany, Italy or Japan? I know, I know the U.S. Is different , but....... Among other things,...
by dbr
Tue Sep 23, 2014 9:51 pm
 
Forum: Investing - Theory, News & General
Topic: Risk and the Trinity Study
Replies: 33
Views: 1761

Re: 3 Fund Portfolio Vs. Vanguard Advisor Recommendations

- Total bond market 47% - Intermediate-term investment-grade bond fund 21% - Total international bond market 18% - Short-term investment grade bond fund 14% His guidance to me is that that Vanguard's Total Bond Market Index Funds aren't really representative of the total bond market, being longer-t...
by dbr
Tue Sep 23, 2014 7:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: 3 Fund Portfolio Vs. Vanguard Advisor Recommendations
Replies: 15
Views: 1631

Re: Risk and the Trinity Study

If the Trinity Study is correct, then 100/0 or 75/25 stocks/bonds is best or ties for best in all 30-year scenarios: http://www.bogleheads.org/wiki/File:TrinityTable3.jpg This means that a lower stock allocation is either riskier or has the same risk. So, why do we think of lower stock allocations ...
by dbr
Tue Sep 23, 2014 2:46 pm
 
Forum: Investing - Theory, News & General
Topic: Risk and the Trinity Study
Replies: 33
Views: 1761

Re: We have a grocery problem... [Household budget]

Your costs are about double ours, also in a large metropolitan area, including any household and personal products bought at a grocery store. But then ours includes this: http://www.malts.com/index.php/Our-Whiskies/Lagavulin and this: http://www.scapamalt.com/Home.aspx but not in massive quantities.
by dbr
Tue Sep 23, 2014 1:48 pm
 
Forum: Personal Consumer Issues
Topic: We have a grocery problem... [Household budget]
Replies: 158
Views: 10593

Re: Blocking Your Own Name & Home Phone Number?

FTC reports that spam calls are now initiated with Caller ID of your own name and telephone number. This is a new scam. My phone has blocking capability and I am wondering it is OK to block my own telephone number? Has anyone blocked their own telephone number? Maybe I'm missing something, but if y...
by dbr
Mon Sep 22, 2014 1:07 pm
 
Forum: Personal Consumer Issues
Topic: Blocking Your Own Name & Home Phone Number?
Replies: 16
Views: 1298

Re: Blocking Your Own Name & Home Phone Number?

How is that a scam? I now know for sure that the call is from "Rachel" and either not answer or pick up and replace the receiver. It is not possible to place a call from a number to the same number, as far as I know, and who would it be anyway if I know I am not calling anyone? Ironically ...
by dbr
Mon Sep 22, 2014 9:31 am
 
Forum: Personal Consumer Issues
Topic: Blocking Your Own Name & Home Phone Number?
Replies: 16
Views: 1298

Re: Trusting our advisor?

I think a better perception of the cost is to realize that of a $40,000/year income a person could raise from $1M invested, the fee takes 25%. Who wants to give a quarter of their income every year to a money manager?
by dbr
Sun Sep 21, 2014 10:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: Trusting our advisor?
Replies: 25
Views: 1882

Re: Trusting our advisor?

OK, so I am not a Diehard. Big Deal. Agreeing with every specific asset allocation statement that Mr. Bogle can be found to have made is hardly a requirement for being a Boglehead. Of course, livesoft is not a diehard, obviously. As far as the OP, in addition to confounding stock and bond internati...
by dbr
Sun Sep 21, 2014 11:19 am
 
Forum: Investing - Help with Personal Investments
Topic: Trusting our advisor?
Replies: 25
Views: 1882

Re: Trusting our advisor?

I don't think lumping stock international and bond international is a good figure. The comments about 20%-40% have been for stocks. Those discussions have never included a statement about allocation to international bonds. I personally have no familiarity with international bond investing. Putting 7...
by dbr
Sun Sep 21, 2014 9:52 am
 
Forum: Investing - Help with Personal Investments
Topic: Trusting our advisor?
Replies: 25
Views: 1882

Re: Critique my thoughts on Real Estate Investing

Please critique my reasoning. I would suggest with all due respect that if your don't know enough about real estate investing to answer questions such as yours rather than ask them, that you shouldn't be doing this, at least not with 30% of your portfolio and multiple properties right off the bat. ...
by dbr
Sun Sep 21, 2014 9:44 am
 
Forum: Investing - Help with Personal Investments
Topic: Critique my thoughts on Real Estate Investing
Replies: 17
Views: 1126

Re: Sale of a home between boyfriend and girlfriend.

The profit should be split in proportion to the contribution made whether down payment, PMI, maintenance or whatever. I don't think taxes should come into it. If the mother actually paid for the roof, she is due a share for that.
by dbr
Sat Sep 20, 2014 10:59 am
 
Forum: Personal Finance (Not Investing)
Topic: Sale of a home between boyfriend and girlfriend.
Replies: 79
Views: 5519

Re: So what the benckmark SWR for a 25 year retirement?

You can look at the tables in the original Trinity Study where results are presented for 15, 20, 25, and 30 years: https://www.aaii.com/journal/article/retirement-savings-choosing-a-withdrawal-rate-that-is-sustainable I would say Trinity is probably the "benchmark," and one can refer to ot...
by dbr
Sat Sep 20, 2014 10:06 am
 
Forum: Investing - Help with Personal Investments
Topic: So what the benckmark SWR for a 25 year retirement?
Replies: 14
Views: 955

Re: Need urgent help for 85 y.o. parents just moved to Vangu

They have a high income, with pensions, annuities, and social security taking them to $95k a year, but they're just spending too much, so they've also been spending the $7k IRA RMD and an additional $20k/year from their taxable retirement account. I'm working with mom to get a budget going, but I n...
by dbr
Fri Sep 19, 2014 5:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need urgent help for 85 y.o. parents just moved to Vanguard
Replies: 65
Views: 3848

Re: Immediate payable annuity is a bad investment?

I am just curious, when you sign up for an SPIA, are there any fees associated with it? There are no fees in the sense you probably mean. The contract is for you to give up a specific sum of money for them to pay you a specific amount every month for the rest of your life. Out of the money you give...
by dbr
Fri Sep 19, 2014 10:12 am
 
Forum: Investing - Theory, News & General
Topic: Immediate payable annuity is a bad investment?
Replies: 45
Views: 2638

Re: 401K ; moving into a no loss / no gain

What is a "no loss/no gain" position? Can you be more specific about what is planned?
by dbr
Fri Sep 19, 2014 10:05 am
 
Forum: Investing - Help with Personal Investments
Topic: 401K ; moving into a no loss / no gain
Replies: 5
Views: 428

Re: Employer stock options

Just a minor quibble but ESOP usually means employee stock OWNERSHIP plan, even if they don't actually call it that. The reason for the quibble is that there is a big difference between buying company stock at a discount and getting grants of stock OPTIONS, which are an entirely different animal wit...
by dbr
Fri Sep 19, 2014 10:03 am
 
Forum: Investing - Help with Personal Investments
Topic: Employer stock options
Replies: 7
Views: 512

Re: The Three Fund Portfolio

I may have missed this in the 18 pages of this great thread, but where do t-bills fit into the 3-fund portfolio? Is it covered in TBM treasuries? I remember reading over and over in Bogle on Mutual Funds that they are an essential asset class. Have you seen the WIKI http://www.bogleheads.org/wiki/T...
by dbr
Tue Sep 16, 2014 10:47 am
 
Forum: Investing - Theory, News & General
Topic: The Three Fund Portfolio
Replies: 898
Views: 355046

Re: Investing in Startup My Father Is Joining as Founder

Since the OP said up top that " He asked if we wanted to invest too, but the paperwork is going to be drawn up such that the investment would be in his name so as not to hold up closing series A.," it would appear that this is either a gift or a loan no matter what.
by dbr
Mon Sep 15, 2014 2:42 pm
 
Forum: Personal Finance (Not Investing)
Topic: Investing in Startup My Father Is Joining as Founder
Replies: 16
Views: 1735

Re: Investing in Startup My Father Is Joining as Founder

What taxes. The investment is in his name, so you don't even exist as far as this operation is concerned. I would say if you want to get technical that you have gifted him $10K (not reportable as a gift) and someday, maybe, somehow, he might gift you something back. If you want to get technical, tec...
by dbr
Mon Sep 15, 2014 10:03 am
 
Forum: Personal Finance (Not Investing)
Topic: Investing in Startup My Father Is Joining as Founder
Replies: 16
Views: 1735

Re: Best Time Of Year To Visit Mediterranean

I vote for autumn, but investigate availability of transportation and facilities first. For example, ferries to the Greek islands are fewer or absent late in the year. We were at one town in mainland Greece at the end of September and they got their first rain of the season. The comment from the sta...
by dbr
Sun Sep 14, 2014 9:22 pm
 
Forum: Personal Consumer Issues
Topic: Best Time Of Year To Visit Mediterranean
Replies: 28
Views: 1393

Re: Am I in over my head?

Swampy wrote:Just because it's free, doesn't mean it's not good.




And just because you pay for it does not mean it is good.

One of the ironies around investing is the upside down character of this exchange. As it is said, you get what you don't pay for.
by dbr
Sun Sep 14, 2014 5:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: Am I in over my head?
Replies: 51
Views: 4659

Re: How to get a child a different teacher after a bad start

Is there a school counselor? If so, I would request that the school counselor meet with the child to see if the counselor can make suggestions on how to make the child's classroom experience more positive. If there is no good school counselor, it may be worthwhile paying for a few sessions with a p...
by dbr
Sun Sep 14, 2014 2:21 pm
 
Forum: Personal Consumer Issues
Topic: How to get a child a different teacher after a bad start?
Replies: 30
Views: 2592

Re: How to get a child a different teacher after a bad start

I think sitting in on class is a good idea also. Maybe a better idea for the parents than for the grandparent to do this. Accompanying a child to class is a great idea, especially when the child is uncomfortable about something. Doing this after escalating to a confrontation with the principal is s...
by dbr
Sun Sep 14, 2014 2:17 pm
 
Forum: Personal Consumer Issues
Topic: How to get a child a different teacher after a bad start?
Replies: 30
Views: 2592

Re: How to get a child a different teacher after a bad start

You can always address a complaint to the superintendent of schools, either by writing a letter or requesting an appointment in person. If you do that, the contact needs to come from the parents and not from you. A request to change schools may or may not be practical or allowed in your district. Do...
by dbr
Sun Sep 14, 2014 1:30 pm
 
Forum: Personal Consumer Issues
Topic: How to get a child a different teacher after a bad start?
Replies: 30
Views: 2592

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

Another question would be: why are bogleheads so negative on real estate as a group? I don't think Bogleheads are negative on real estate. This forum really is a discussion group for stock and bond investing and related financial planning. This is a result of being inspired by and oriented to the V...
by dbr
Sun Sep 14, 2014 1:00 pm
 
Forum: Investing - Theory, News & General
Topic: Why do so many think their home is a foolproof investment?
Replies: 125
Views: 6449

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

Again, a (rental) house may be an investment, a home is not. You do not consider your car as an investment. Your meals are not an investment. I don't know. I know someone who had a particularly desirable out of production model of an elite make of car who had the car stolen and had to pay capital g...
by dbr
Sat Sep 13, 2014 12:06 pm
 
Forum: Investing - Theory, News & General
Topic: Why do so many think their home is a foolproof investment?
Replies: 125
Views: 6449
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