Search found 1395 matches

by freebeer
Fri Jul 31, 2015 12:16 am
Forum: Personal Finance (Not Investing)
Topic: Wait... What? [IRA and taxation]
Replies: 16
Views: 2221

Re: Wait... What?

Well, you thought wrong. All traditional 401K/IRA withdrawals are taxed as ordinary income, which does reduce the appeal of a traditional 401K somewhat (but not enough to make taxable investing a better deal for most people, although that depends on a number of factors including your marginal tax ra...
by freebeer
Wed Jul 29, 2015 6:11 pm
Forum: Personal Consumer Issues
Topic: Mandatory vehicle collision avoidance systems are coming
Replies: 43
Views: 2648

Re: Mandatory vehicle collision avoidance systems are coming

Considering the modest added expense per vehicle, with camera, sensor, controller, and CPU costs continuing to plummet due to Moore's Law, the net benefit to society of reduction in injuries and deaths, and freed up time to do other things besides be a driver, will be huge. The liquor industry alone...
by freebeer
Tue Jul 28, 2015 6:49 pm
Forum: Personal Consumer Issues
Topic: wife got in wreck with Honda CRV - no collison coverage
Replies: 113
Views: 6114

Re: wife got in wreck with Honda CRV - no collison coverage

... I made a big mistake of dropping collision coverage on the CRV months ago to save on the insurance premiums... Well, don't be too hard on yourself. With the high premiums the insurance might have been a very bad deal. That your wife happened to have another accident may have been just chance. A...
by freebeer
Sun Jul 26, 2015 11:39 am
Forum: Personal Consumer Issues
Topic: Would you look down on a co-worker for driving a beater?
Replies: 172
Views: 10443

Re: Would you look down on a co-worker for driving a beater?

... people are going to see my car when I drive up. It will probably be the worst looking car on the lot. I work in a somewhat professional field. Could driving a beater like this affect my co-workers' and/or management's opinion about me which could affect future promotional opportunities and the ...
by freebeer
Sun Jul 05, 2015 7:35 pm
Forum: Personal Finance (Not Investing)
Topic: New home purchase - How much do I put down?
Replies: 9
Views: 1526

Re: New home purchase - How much do I put down?

$950K (post-remodel basis) is quite a large amount for a first home, or really for any home. If I were in your shoes I would be looking to maximize leverage to retain liquidity and minimize risk just in case something goes south, as long as not paying too high a % interest rate or having to do PMI o...
by freebeer
Sun Jul 05, 2015 7:01 pm
Forum: Investing - Theory, News & General
Topic: BullionDirect.com suspends operations. Looks like another implosion/scam
Replies: 67
Views: 6202

Re: BullionDirect.com suspends operations. Looks like another implosion/scam

...We are paid a "salary" because Roman soldiers were paid in salt. ... Just a minor point: this origin for the word "salarium" was effectively a just so story of Pliny, writing in the 1st Century AD, at which point Roman soldiers were and had been for the entire historical reco...
by freebeer
Mon Jun 08, 2015 7:44 am
Forum: Personal Finance (Not Investing)
Topic: Putting off Social Security until 70
Replies: 89
Views: 8062

Re: Putting off Social Security until 70

...for people with no other financial resources taking Social Security at age 62 beats going on welfare... I'm not so sure about that. My Mom took Social Security at age 62, in part because she perceived herself to be in poorer than average health (she had been a smoker from age 13 until then) but ...
by freebeer
Fri Jun 05, 2015 9:48 am
Forum: Investing - Theory, News & General
Topic: 5% of year-end portfolio balance for a 35-year SWR?
Replies: 38
Views: 5046

Re: 5% of year-end portfolio balance for a 35-year SWR?

I would repeat the PMT() calculation every year to see the maximum withdrawal rate to use. That's what some of us call VPW ( wiki:Variable percentage withdrawal ). Well, as I understand it VPW is one particular algorithm for such a calculation, embodied in one particular Excel spreadsheet. But it w...
by freebeer
Mon Jun 01, 2015 7:58 pm
Forum: Investing - Help with Personal Investments
Topic: do tax-managed funds really pay lower dividends/
Replies: 4
Views: 465

Re: do tax-managed funds really pay lower dividends/

... The SEC yield of a stock fund is the current dividend yield of the stocks it holds, minus expenses. This is 1.64% for VTCLX, 1.83% for VONE, with equal expenses for the two funds. Now that's the kind of simplistic calculation I can fully get behind! Thus the tax-managed fund has a slight emphas...
by freebeer
Mon Jun 01, 2015 7:55 pm
Forum: Investing - Help with Personal Investments
Topic: do tax-managed funds really pay lower dividends/
Replies: 4
Views: 465

Re: do tax-managed funds really pay lower dividends/

Here is a thread on how to calculate tax-efficiency for yourself: https://www.bogleheads.org/forum/viewtopic.php?t=158519 Thank you livesoft. Wow though, having to code up an 8-step algorithm... uh... seems a bit burdensome. I guess I am spoiled by all the information automatically calculated by va...
by freebeer
Mon Jun 01, 2015 8:32 am
Forum: Investing - Help with Personal Investments
Topic: do tax-managed funds really pay lower dividends/
Replies: 4
Views: 465

do tax-managed funds really pay lower dividends/

I am a bit confused perhaps just about calculating dividend returns or maybe something more fundamental about tax-managed funds. According to Vanguard its Tax-Managed Capital Appreciation Fund Admiral Shares (VTCLX) "... attempts to track the [Russell 1000] benchmark, while minimizing taxable g...
by freebeer
Sun May 24, 2015 3:35 pm
Forum: Investing - Theory, News & General
Topic: Mt Hood: 5% chance of eruption in next 30 years.
Replies: 12
Views: 2138

Re: Mt Hood: 5% chance of eruption in next 30 years.

So says USGS. That number struck me as analogous to the standard 4% SWR recommendation: withdraw 4% inflation adjusted per year, and you have only a 5% chance of running out of money over 30 years. That made me wonder. Counting on a 95% success rate in your portfolio should be no different than dec...
by freebeer
Thu May 14, 2015 12:52 am
Forum: Investing - Theory, News & General
Topic: Interactive Brokers (Best Kept Secret)
Replies: 63
Views: 6964

Re: Interactive Brokers (Best Kept Secret)

Is there a conspiracy against this company ... If you like to invest in stocks, then this is an absolute no-brainer. ...I just feel like this community needs to know about this secret... Uh, this community generally doesn't like to speculate on individual stocks since that is contrary to Bogleheads...
by freebeer
Thu May 14, 2015 12:43 am
Forum: Personal Consumer Issues
Topic: Can a room with only a toilet be considered a bathroom?
Replies: 28
Views: 2454

Re: Can a toilet alone in a room be considered a bathroom?

Seattle has more than a few of these in its older (and basement-rich) housing stock but I've never heard of such basement toilets being called "1/4 baths". They are just "bonus" plumbing features in the basement (and often pretty weird/gross). If anything there's a disincentive t...
by freebeer
Mon May 04, 2015 2:12 pm
Forum: Personal Consumer Issues
Topic: Will you buy self-driving car?
Replies: 235
Views: 11630

Re: Will you buy self-driving car?

Nope, not a chance in hell. I have been in software development for 40 years. I know what crap is under the hood (so to speak). I would still rather fly on a de Havilland DHC-6 Twin Otter than any Airbus plane. So, do you have any data about the objective safety record of de Havilland DHC-6 Twin Ot...
by freebeer
Sun May 03, 2015 10:12 pm
Forum: Personal Consumer Issues
Topic: Will you buy self-driving car?
Replies: 235
Views: 11630

Re: Will you buy self-driving car?

Nope, not a chance in hell. I have been in software development for 40 years. I know what crap is under the hood (so to speak). I would still rather fly on a de Havilland DHC-6 Twin Otter than any Airbus plane. So, do you have any data about the objective safety record of de Havilland DHC-6 Twin Ot...
by freebeer
Sun May 03, 2015 10:12 pm
Forum: Personal Consumer Issues
Topic: Will you buy self-driving car?
Replies: 235
Views: 11630

Re: Will you buy self-driving car?

Nope, not a chance in hell. I have been in software development for 40 years. I know what crap is under the hood (so to speak). I would still rather fly on a de Havilland DHC-6 Twin Otter than any Airbus plane. So, do you have any data about the objective safety record of de Havilland DHC-6 Twin Ot...
by freebeer
Wed Apr 29, 2015 6:10 pm
Forum: Investing - Help with Personal Investments
Topic: Early Retirement with 401(k)'s and IRA's
Replies: 16
Views: 2135

Re: Early Retirement with 401(k)'s and IRA's

SaraSV, the Guide, like the Wiki it's drawn from, is oriented towards people in typical situations (I think it even says so somewhere but I can't locate the reference at the moment). Planning to retire at 49 is atypical so it should not be surprising if the blanket advice is not fully applicable. In...
by freebeer
Wed Apr 29, 2015 4:53 pm
Forum: Personal Finance (Not Investing)
Topic: Co-sign on spouse's student loans?
Replies: 47
Views: 3640

Re: Co-sign on spouse's student loans?

So I guess for me the steps are going to consist of: ... It's a good plan, but if you don't already have it--get life insurance. It should be really cheap at your age. You really should have it regardless of this situation, but this situation calls for it all the more. I disagree especially with th...
by freebeer
Wed Apr 29, 2015 2:25 pm
Forum: Personal Finance (Not Investing)
Topic: Co-sign on spouse's student loans?
Replies: 47
Views: 3640

Re: Co-sign on spouse's student loans?

So I guess for me the steps are going to consist of: ... It's a good plan, but if you don't already have it--get life insurance. It should be really cheap at your age. You really should have it regardless of this situation, but this situation calls for it all the more. I disagree especially with th...
by freebeer
Mon Apr 27, 2015 10:40 pm
Forum: Personal Finance (Not Investing)
Topic: lost a bid for questionable practice of seller's agent
Replies: 28
Views: 3664

Re: lost a bid for questionable practice of seller's agent

I would talk to the broker (owner of office) where the seller's agent works. There is a Realtor code of ethics ( http://www.realtor.org/governance/governing-documents/the-code-of-ethics ) that goes above and beyond state statutes, and most real estate offices will be members. The broker would probab...
by freebeer
Mon Apr 27, 2015 2:30 pm
Forum: Personal Finance (Not Investing)
Topic: Feel like I made a mistake with buying a house: appreciation
Replies: 43
Views: 5362

Re: Feel like I made a mistake with buying a house: apprecia

I think other posters are giving you too hard a time. Most home buyers don't think about their home primarily as an investment. So most don't aim to buy for maximum appreciation potential, as other factors are more important to them. And the housing market especially for single-family homes is not a...
by freebeer
Mon Apr 27, 2015 8:47 am
Forum: Personal Consumer Issues
Topic: South America [vacation recommendations]
Replies: 32
Views: 2858

Re: If You Were Going To S. America ...

I really enjoyed Ecuador - volcano climbing, interesting culture, and a small slice of the Amazon basin as well. Quito has big-city crime issues (thus no-go places and times) but I felt extremely safe in the rest of the country, including the lovely resort town Banos. Spanish is spoken slowly, class...
by freebeer
Fri Apr 24, 2015 9:26 am
Forum: Personal Finance (Not Investing)
Topic: [How do I lead a discussion about saving for retirement?]
Replies: 38
Views: 4458

Re: 1/3 of those SAVING for retirement have less than $1000

OP, regarding your specific actionable question about qualifications for doing a talk, I think you can just go for it. But remember that the alarmist report was published by a group with a board that's a who's-who of financial institutions with a vested interest in increasing funds under management....
by freebeer
Wed Apr 22, 2015 11:21 pm
Forum: Investing - Theory, News & General
Topic: Retirees: What is your SWR in retirement?
Replies: 45
Views: 4378

Re: Retirees: What is your SWR in retirement?

A 3% rule for a 30 year retirement worked in all historical scenarios, even if you retired just before the great depression. However if you use a Monte Carlo simulation instead of historical data and assume 7% return, 2% inflation, and 20% standard deviation, a 3% rule only works in 73% of scenario...
by freebeer
Wed Apr 22, 2015 8:34 pm
Forum: Personal Consumer Issues
Topic: Living in New Hampshire?
Replies: 35
Views: 2880

Re: Living in New Hampshire?

I think the Upper Valley region is quite nice (having visited in-laws many times in all seasons, but never lived there), it's along the Connecticut River bordering Vermont, centered around Hanover (Dartmouth). Close to White Mountains and other great hiking (Appalachian Trail goes through downtown H...
by freebeer
Mon Apr 20, 2015 7:57 pm
Forum: Personal Consumer Issues
Topic: [What is safest vehicle on the road today that I can buy?]
Replies: 114
Views: 8935

Re: What is safest vehicle on the road today?

2015 MERCEDES-BENZ ML-CLASS SUV 4WD because this site says so: http://www.informedforlife.org/ actually, no, it culls from the list larger vehicles who are safer only because of their mass, see the note at bottom and the link to http://www.informedforlife.org/viewartcl.php?index=83 . So the 2015 ME...
by freebeer
Tue Apr 14, 2015 4:18 am
Forum: Investing - Theory, News & General
Topic: WSJ: You may need less than 80% in retirement
Replies: 98
Views: 9942

Re: Finally some good news on retirement

This is silly. Nobody should plan a retirement budget on income, past, present, or future. You start with a budget which should be divided into discretionary and bottom-line expenses. From that you determine income requirements. It is totally backwards to start from income and from that determine a...
by freebeer
Mon Apr 13, 2015 6:44 pm
Forum: Personal Consumer Issues
Topic: Neighbor hired a surveyor. Should I be nervous?
Replies: 81
Views: 11515

Re: Neighbor hired a surveyor. Should I be nervous?

are you in a rural area where things are on wells and/or septic systems? If so it may be that the neighbor was required to get a survey as part of enhancing or even just maintaining these things (or even for home remodeling) and that the determination that the boundary line is 1 foot on your side of...
by freebeer
Thu Apr 09, 2015 8:14 pm
Forum: Personal Finance (Not Investing)
Topic: Cost of College & Weighing the Merits of Top Schools
Replies: 304
Views: 19617

Re: Cost of College & Weighing the Merits of Top Schools

My eldest will be matriculating this Fall at a very selective (but not quite Ivy) college, and we'll be paying rack rate (ouch!). I thought it would be a better deal for him to get his undergraduate education at our local state university (which also admitted him) as it is also highly ranked in his ...
by freebeer
Thu Apr 09, 2015 11:46 am
Forum: Investing - Theory, News & General
Topic: The $1 Million Goal: Source of Motivation or Discouragement?
Replies: 172
Views: 17715

Re: The $1 Million Goal: Source of Motivation or Discouragem

Arguably, the vast majority of Americans will never reach a $1 million portfolio. I for one have far less than that and am living well in retirement. Was watching CBS news this morning and an 'expert' again mentioned the $1 million needed for retirement, and the host incredulously fired back "...
by freebeer
Wed Apr 08, 2015 9:58 am
Forum: Investing - Theory, News & General
Topic: Making Sense of Variable Spending Strategies for Retirees
Replies: 4
Views: 679

Re: Making Sense of Variable Spending Strategies for Retiree

...it isn't as useful for those who are interesting in "using it all up", rather than those happy to leave a bundle for heirs. For those planning to spend primarily from the returns (total returns, not just "interest/dividends"), AND for those not living close to the edge, this ...
by freebeer
Tue Apr 07, 2015 9:26 am
Forum: Personal Consumer Issues
Topic: VRBO rental gone awry- recourse for security deposit?
Replies: 50
Views: 5863

Re: VRBO rental gone awry- recourse for security deposit?

Just read your post above where you left the garbage in bags out on the street ; I'll be blunt , I don't think you demonstrated any common sense or maybe you live in an area where there's no possibility of animals getting into garbage , that's also hard to believe . If it were me I'd look for the c...
by freebeer
Mon Apr 06, 2015 11:16 am
Forum: Investing - Theory, News & General
Topic: Do you think Ric Edelman is correct, never pay down mortgage
Replies: 257
Views: 26872

Re: Do you think Ric Edelman is correct, never pay down mort

No, I don't think Edelman is correct. It makes little sense to hold fixed income investments in a taxable account paying 2% when your mortgage is costing 4%! Well with interest deduction your mortgage may be costing significantly less than 4%. And many people locate most if not all of their fixed i...
by freebeer
Sun Apr 05, 2015 10:27 am
Forum: Personal Finance (Not Investing)
Topic: Renting in Retirement - Considerations?
Replies: 53
Views: 4761

Re: Renting in Retirement - Considerations?

I think you have two completely separate issues here: urban vs. suburban/rural living and renting vs. owning. These aren't necessarily related and it seems that most of your and spouse's considerations are based on the possible change to urban living. So you could first give urban living a try (rent...
by freebeer
Sat Apr 04, 2015 9:03 am
Forum: Personal Finance (Not Investing)
Topic: Another house "Can I afford it" question
Replies: 9
Views: 1882

Re: Another house "Can I afford it" question

Last spring we hounded DS (29) to really look for a home. Homes in his area was/is appreciating at 5%+. He decided that Seattle will be his permanent home (5 years resident) and successfully completed 1st year on a new job. He had not contributed to 401k (no match) for 2013 and 2014. Consequently, ...
by freebeer
Tue Mar 31, 2015 10:54 pm
Forum: Local Chapters and Bogleheads Community
Topic: A special day for two World War II veterans
Replies: 20
Views: 2085

Re: A special day for two World War II veterans

Taylor, you look the same age as the Mayor!
by freebeer
Tue Mar 31, 2015 10:27 pm
Forum: Personal Finance (Not Investing)
Topic: My car is (supposedly) totaled. What to do?
Replies: 26
Views: 2594

Re: My car is (supposedly) totaled. What to do?

Would you buy a salvage title 99 Toyota Corolla for $550 with sales tax waived, with the stated damage? I would, for sure, so I would go for option 2.
by freebeer
Tue Mar 24, 2015 10:09 am
Forum: Personal Finance (Not Investing)
Topic: [Neighbor violating HOA rules by using] VBRO and Airbnb
Replies: 38
Views: 4745

Re: VBRO and Airbnb versus property values

These are SFR but all are in a big Planned Area Development where HOA owns and maintains streets and several commons areas and facilities. So the HOA does a lot of stuff. How do you tell if they have this power? You should have been given a set of CC&Rs when you bought in, and addenda when new ...
by freebeer
Mon Mar 23, 2015 7:55 pm
Forum: Personal Finance (Not Investing)
Topic: [Neighbor violating HOA rules by using] VBRO and Airbnb
Replies: 38
Views: 4745

Re: VBRO and Airbnb versus property values

MY HOA passed a amendment to the CCRs back in 2001 covering all sorts of rental situations... So, one question is whether there was legal review at the time or afterwards to ensure that this amendment was definitely within the scope of the HOA. This might depend on your state/local laws as well as ...
by freebeer
Mon Mar 23, 2015 9:51 am
Forum: Personal Finance (Not Investing)
Topic: [Neighbor violating HOA rules by using] VBRO and Airbnb
Replies: 38
Views: 4745

Re: VBRO and Airbnb versus property values

What does it mean that your "HOA is very clear this is a not allowed activity", particularly when you mentioned there are other (longer-term) rentals in your neighborhood? Since the sharing economy has arisen only recently, and most HOA covenants are older, it would be surprising if there ...
by freebeer
Thu Mar 19, 2015 9:39 pm
Forum: Personal Finance (Not Investing)
Topic: What Age Did You First Ponder Financial Independence?
Replies: 74
Views: 8249

Re: What Age Did You First Ponder Financial Independence?

Age 9... I stumbled on parents' copy of "How I turned $1,000 into a Million in Real Estate" and was hooked :happy of course the title of that particular book could have been "Over-leveraging is amazing if you happen to catch the beginning of a long-term bubble" :oops: but the gen...
by freebeer
Wed Mar 18, 2015 10:54 pm
Forum: Personal Consumer Issues
Topic: Is a larger home downpayment worth it?
Replies: 18
Views: 2652

Re: Is a larger home downpayment worth it?

There is an additional consideration not mentioned yet in this thread, which is the benefits/drawbacks of increased leverage, particularly if a mortgage is no-recourse (depending on your state). With 10% down if property value increases by 10% net of transaction costs over 5 years (without you havin...
by freebeer
Tue Mar 17, 2015 4:35 am
Forum: Investing - Theory, News & General
Topic: Article: The Death of The Millionaire Next Door Dream
Replies: 20
Views: 5684

Re: Article: The Death of The Millionaire Next Door Dream

...Overall he seems to miss the entire premise of The Millionaire Next Door, which is simply that, as I read it, our notion of the typical wealthy person is flat wrong - it is much more likely to be the guy in an older Ford pickup or a Camry, wears jeans, went to state school, and who owns a boring...
by freebeer
Mon Mar 09, 2015 2:53 pm
Forum: Investing - Theory, News & General
Topic: Bernstein: 2% investment returns over next 20 years
Replies: 216
Views: 25970

Re: Bernstein: 2% investment returns over next 20 years

The quote said 2% real "net of expenses" but what average expenses was Bill Bernstein presuming in making that prediction? Not everyone is a pure Boglehead directly owning only very low cost funds. And even Wade Pfau's paper last year (questioning 4% SWR) posited 1% wrap fee. If it's going...
by freebeer
Fri Mar 06, 2015 11:04 pm
Forum: Investing - Theory, News & General
Topic: Mr. Money Mustache: Hero or Foolish?
Replies: 452
Views: 78955

Re: Mr. Money Mustache: Hero or Foolish?

Part of the point of MMM is that being in a defensive crouch is the wrong way to go about investing If you assume lower returns, you get a lower SWR. Not exactly rocket science. We are getting into Dave Ramsey territory here. People want fantasy. Dave and MMM deliver. Dave Ramsey: 12% return from g...
by freebeer
Thu Mar 05, 2015 8:02 am
Forum: Investing - Theory, News & General
Topic: Mr. Money Mustache: Hero or Foolish?
Replies: 452
Views: 78955

Re: Mr. Money Mustache: Hero or Foolish?

I'm pleased to see he is in agreement with me. Consider that a completely safe asset with a real return of 0% will give a 3.3% SWR. Currently Vanguard UK's world high-yield tracker (which invests in the half of the world index with higher dividend yields) gives dividends of 3.8%. Although that inco...
by freebeer
Tue Mar 03, 2015 10:29 am
Forum: Investing - Help with Personal Investments
Topic: Want to make $750K into $1m...Help
Replies: 25
Views: 2932

Re: Want to make $750K into $1m...Help

I'm a little puzzled by the Boglehead responses to OP post. My guess would have been that people would advice to put 50:50 in total stock and tax-exempt munis. CDs won't even beat inflation. Did you miss what the op stated about risk tolerance? It clearly matters. Yeah but should we really pander t...
by freebeer
Fri Feb 27, 2015 4:25 pm
Forum: Investing - Help with Personal Investments
Topic: International is disappointing
Replies: 84
Views: 8074

Re: International is disappointing

Vanguard Total International has underperformed the S&P 500 in the past 5 years by more than 60%? So disappointing that I'm considering taking the risk and going 100% Vanguard TSM (Total Stock Market). S&p 500 is disappointing. It underperformed international by 50% between 2003-2007. If yo...
by freebeer
Sun Feb 22, 2015 3:36 pm
Forum: Investing - Help with Personal Investments
Topic: Mid 60's , still working , need help with a plan
Replies: 7
Views: 1778

Re: Mid 60's , still working , need help with a plan

Hi, I'm not sure there's "not so good news", you don't mention spending other than $24K/year on housing, which is modest, and you'll have $48K in income ($68K counting wife's income) plus $600K in investments (+ home equity?). Plus presumably more SS when your wife is eligible to get a spo...

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