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Re: Do Bogleheads Feel Wealthier?

Additional spending wouldn't improve my quality of life, since I already spend enough to have everything that makes me happy. In fact, I enjoy being thrifty a lot more than buying fancy stuff. I also enjoy, perhaps irrationally, watching my net worth increase. However, while the "wealth effect...
by letsgobobby
Mon Jul 28, 2014 1:39 am
 
Forum: Personal Finance (Not Investing)
Topic: Do Bogleheads Feel Wealthier?
Replies: 15
Views: 543

Re: 36 percent decline in net worth

Just a guess . . . Those in the median net worth group had most of their net worth in housing. They did not benefit much from the stock market recovery. Prices in real estate continued to fall in our area into late 2011, early 2012. Most Americans DID have most of their wealth in housing. That's wh...
by letsgobobby
Mon Jul 28, 2014 12:31 am
 
Forum: Investing - Theory, News & General
Topic: 36 percent decline in net worth
Replies: 32
Views: 3167

Re: Best Coffee Maker? What do you have?

Believe it or not, I'm quite happy with the "free" Gevalia coffee makers they used to give out for trying their lousy coffee. I'd sign up, get the 2 bags of coffee and the coffee maker for $10-20 shipping, throw out the coffee, and cancel the membership. I ended up with a programmable 12 c...
by letsgobobby
Mon Jul 28, 2014 12:28 am
 
Forum: Personal Consumer Issues
Topic: Best Coffee Maker? What do you have?
Replies: 58
Views: 3612

Re: If you tax adjust, how has it changed your life?

David, it sounds like you're saying the impact of tax adjusting has been extremely small, not enough to make any meaningful difference?
by letsgobobby
Mon Jul 28, 2014 12:25 am
 
Forum: Investing - Theory, News & General
Topic: If you tax adjust, how has it changed your life?
Replies: 12
Views: 1238

Re: Do Bogleheads Feel Wealthier?

I read a lot about the wealth effect but I never believed it. My perspective was that of an early career investor. If our stocks went up 1% or 5% or 10%, I did not feel richer at all. It wasn't enough money to make me feel richer. Neither the increase nor the total wealth in dollars were enough to c...
by letsgobobby
Mon Jul 28, 2014 12:24 am
 
Forum: Personal Finance (Not Investing)
Topic: Do Bogleheads Feel Wealthier?
Replies: 15
Views: 543

Re: If you tax adjust, how has it changed your life?

Imagine there were no tax differences but instead your Roth IRA balances were presented to you is US dollars, your taxable accounts in Australian dollars and your Traditional IRA / 401(k) in Canadian dollars, would you feel comfortable just adding these "dollars" up or setting AA based on...
by letsgobobby
Sun Jul 27, 2014 8:30 pm
 
Forum: Investing - Theory, News & General
Topic: If you tax adjust, how has it changed your life?
Replies: 12
Views: 1238

Re: POLL: My home is worth less/more in 2014 than in 2007?

Built in 06 and sold in 07 for $825k at the very top of the market. Those owners stopped paying within 2 years and had tax liens, HOA liens, etc by the time we bought the short sale for $495k in 2011, probably within a month of the bottom of the market. Don't know current best valuation; Zillow says...
by letsgobobby
Sun Jul 27, 2014 8:24 pm
 
Forum: Personal Finance (Not Investing)
Topic: POLL: My home is worth less/more in 2014 than in 2007?
Replies: 40
Views: 1604

Re: Vanguard sued for charging too little

I thought this would be an Onion article.
by letsgobobby
Sat Jul 26, 2014 9:54 pm
 
Forum: Personal Finance (Not Investing)
Topic: Vanguard sued for charging too little
Replies: 96
Views: 6491

Re: Need advice choosing fund for college expenses (not 529)

One other tip on 529s is that having more than one per child limits taxes and penalties you might otherwise pay due to account aggregation (as pointed out above). We own six 529s with three different states and some are in my name and some are in my wife's name; some hold only prepaid tuition and so...
by letsgobobby
Sat Jul 26, 2014 11:24 am
 
Forum: Investing - Help with Personal Investments
Topic: Need advice choosing fund for college expenses (not 529)
Replies: 15
Views: 749

Re: Need advice choosing fund for college expenses (not 529)

Thanks a lot for this information. It brings up good ideas that I had not entertained. I had thought a separate 'pot' of money would be easier to account for, keep an eye on, and place in a different risk category than my other longer term investments which are more aggressive. I am eligible for th...
by letsgobobby
Sat Jul 26, 2014 10:09 am
 
Forum: Investing - Help with Personal Investments
Topic: Need advice choosing fund for college expenses (not 529)
Replies: 15
Views: 749

Re: Public Speaking-help

I have at least as bad a problem. I get shaky even thinking about being in a meeting with people who report to me. Twice a year I am asked to give a reflection in front of a group of 10-60 people, most whom I've known for a decade. The reflection lasts 1-3 minutes or less. I agonize over it for days...
by letsgobobby
Sat Jul 26, 2014 9:38 am
 
Forum: Personal Consumer Issues
Topic: Public Speaking-help
Replies: 57
Views: 2301

Re: Need advice choosing fund for college expenses (not 529)

I see no reason at all for you to establish a separate pot of money for your kids in a taxable account. You have taxable pots of money here, and there, and everywhere, and it doesn't matter what you call them. If you actually give the kids the money you might squeeze out a little tax gain harvesting...
by letsgobobby
Fri Jul 25, 2014 7:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need advice choosing fund for college expenses (not 529)
Replies: 15
Views: 749

Re: equal asset location and rebalancing

You are being too simplistic or not simplistic enough. Over the 2-year period TSM would have paid out dividends: $1,000 the first year and $1,000 the 2nd year. Those dividends would have been invested back into the bonds. Thus at the end of 2 years, the ratios would have been about $55K to $58K and...
by letsgobobby
Fri Jul 25, 2014 7:04 pm
 
Forum: Investing - Theory, News & General
Topic: equal asset location and rebalancing
Replies: 6
Views: 546

equal asset location and rebalancing

Can someone explain how equal asset location can be an optimal answer when rebalancing is taken into account? Doesn't this require constantly realizing capital gains in the taxable account to rebalance (typically stocks into bonds), thus Here's a simple example: taxable: $50k or 50% VWITX (tax exemp...
by letsgobobby
Fri Jul 25, 2014 1:48 pm
 
Forum: Investing - Theory, News & General
Topic: equal asset location and rebalancing
Replies: 6
Views: 546

Re: Rules of thumb that shouldn't be

In your opinion, what rules of thumb are too often incorrect to be a good rule of thumb? Judging by the recent thread about tax adjustment and the wiki article on tax efficient asset location, some would probably include the following on the list: "stocks should go in taxable, bonds should go ...
by letsgobobby
Fri Jul 25, 2014 12:43 pm
 
Forum: Investing - Theory, News & General
Topic: Rules of thumb that shouldn't be
Replies: 30
Views: 2569

Re: Rules of thumb that shouldn't be

1) By number of investors and/or by total wealth invested, I would not assume good 401K plans are rare. Most megacorps and the Federal Government have good plans, many even better than any IRA. That does not addresss liability exposure concerns either. There are a lot of awful plans in smaller comp...
by letsgobobby
Fri Jul 25, 2014 12:41 pm
 
Forum: Investing - Theory, News & General
Topic: Rules of thumb that shouldn't be
Replies: 30
Views: 2569

Re: Rules of thumb that shouldn't be

livesoft wrote:Lump-sum is better than dollar-cost averaging



crushtheturtle wrote:age in bonds


Expand?
by letsgobobby
Fri Jul 25, 2014 12:22 pm
 
Forum: Investing - Theory, News & General
Topic: Rules of thumb that shouldn't be
Replies: 30
Views: 2569

Rules of thumb that shouldn't be

In your opinion, what rules of thumb are too often incorrect to be a good rule of thumb? My pet peeve is: "You should usually roll over an old 401k into an IRA" I dislike this one because it's not true for so many investors and situations: - 401ks can have much lower expense ratios than IR...
by letsgobobby
Fri Jul 25, 2014 10:09 am
 
Forum: Investing - Theory, News & General
Topic: Rules of thumb that shouldn't be
Replies: 30
Views: 2569

Re: Momentum Investing ?

Maybe there were Value, Momentum, Profit, etc premiums 20 years ago but doesn't the very act of creating funds to try to capture these premiums change the conditions in which these premiums persisted? Larry himself said the act of publishing a paper on a premium reduced the premium by 1/3. How much...
by letsgobobby
Fri Jul 25, 2014 9:41 am
 
Forum: Investing - Theory, News & General
Topic: Momentum Investing ?
Replies: 55
Views: 4205

If you tax adjust, how has it changed your life?

For those of you who tax adjust your asset allocation (please see below links for more on this topic itself), would you provide a specific example of how doing so has caused you to change something in your behavior? or thinking? For example, if you tax adjust and as a result hold 3% fewer stocks in ...
by letsgobobby
Fri Jul 25, 2014 9:28 am
 
Forum: Investing - Theory, News & General
Topic: If you tax adjust, how has it changed your life?
Replies: 12
Views: 1238

Re: Bonds beat stocks over the last 15 years

It is rather remarkable that despite a PE10 of 40+ in 1999, the 15 year return of the market has been as good as 5%. The 10 year return was terrible, of course. Historically the starting PE10 has predicted the 20 year return best. What will the next 5 years bring? If stocks do not fall sharply from ...
by letsgobobby
Thu Jul 24, 2014 3:24 pm
 
Forum: Investing - Theory, News & General
Topic: Bonds beat stocks over the last 15 years
Replies: 92
Views: 6939

Re: The article on tax efficient placement needs to be rewri

The people talking about taxes due on a traditional IRA in this discussion are ... misguided. Those taxes will be due regardless of whether you invested in stocks, bonds, or anything else, so from an asset location perspective it doesn't matter. The right way to think about that is effect is to tax...
by letsgobobby
Thu Jul 24, 2014 3:09 pm
 
Forum: Investing - Theory, News & General
Topic: The article on tax efficient placement needs to be rewri
Replies: 75
Views: 3919

Re: The article on tax efficient placement needs to be rewri

I agree with those who believe that the article is very flawed. Sure there are some warnings in it, but it still focuses on placing bonds in tax deferred areas, and the individual pitfalls are not mentioned too much after the initial warnings. I am glad for those in whom the article works, i think ...
by letsgobobby
Thu Jul 24, 2014 11:59 am
 
Forum: Investing - Theory, News & General
Topic: The article on tax efficient placement needs to be rewri
Replies: 75
Views: 3919

Re: How to set up a trust

I also took bsteiner's advice and with my estate planning attorney have set up the same. I described it here:

viewtopic.php?f=2&t=143352&p=2129667#p2129484
by letsgobobby
Thu Jul 24, 2014 3:06 am
 
Forum: Personal Finance (Not Investing)
Topic: How to set up a trust
Replies: 11
Views: 1768

Re: The article on tax efficient placement needs to be rewri

maybe - can you walk me through the 'extra 30-50 bps/yr with no additional risk' part? Assume: 1) 25% Tax on Treasuries and ~10% effective (15% statutory) tax rate on equities. (The actual equity tax bracket and length of investment determine the effective tax bracket for equities. It varies a lot ...
by letsgobobby
Thu Jul 24, 2014 3:03 am
 
Forum: Investing - Theory, News & General
Topic: The article on tax efficient placement needs to be rewri
Replies: 75
Views: 3919

Re: 2 days in Portland, suggestions?

Cool moon ice cream in the pearl is nearly as good, way less attitude, cheaper, and almost no lines.
by letsgobobby
Thu Jul 24, 2014 12:02 am
 
Forum: Personal Consumer Issues
Topic: 2 days in Portland, suggestions?
Replies: 34
Views: 1330

Re: Where is your brokerage account?

There are a number of good options but I don't think Chase is one of them. What makes you think of Chase?
by letsgobobby
Wed Jul 23, 2014 3:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: Where is your brokerage account?
Replies: 41
Views: 2568

Re: Please help settle an argument

Always is almost always wrong.

Everything depends.

I'd borrow at 0%, but not 5%.
by letsgobobby
Wed Jul 23, 2014 2:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: Please help settle an argument
Replies: 23
Views: 1939

Re: Reaching Severe Burnout - Can I Scale Back Career?

With expenses $55k per year you have 10x+ expenses saved at age 30. now certainly your expenses will rise as you start to have a family, and if you plan to pay for college you will want to consider that. Nevertheless you are far, far ahead of most 30 year olds - actually, you are far, far ahead of m...
by letsgobobby
Wed Jul 23, 2014 1:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: Reaching Severe Burnout - Can I Scale Back Career?
Replies: 48
Views: 4968

Re: The article on tax efficient placement needs to be rewri

Really this comes down to what one considers to be "normal" interest rates. If rates now are "abnormally low" and are sure to go back up to 7 or 8% any day now, then bonds should go in tax advantaged. If sub-3% rates are the "new normal", then the old rules are wrong. ...
by letsgobobby
Wed Jul 23, 2014 12:50 pm
 
Forum: Investing - Theory, News & General
Topic: The article on tax efficient placement needs to be rewri
Replies: 75
Views: 3919

Re: The article on tax efficient placement needs to be rewri

You can play with the numbers, but there's actually no way to get stocks to be advantageous in the taxable space unless you assume returns very close to bonds, which is a low probability event and not true over long periods. What is also not true over long periods of time is that bonds have yields ...
by letsgobobby
Wed Jul 23, 2014 11:20 am
 
Forum: Investing - Theory, News & General
Topic: The article on tax efficient placement needs to be rewri
Replies: 75
Views: 3919

Re: New vehicle...GMC Acadia, Chevy Traverse, or Buick Encla

My only hang up is Dodge reliability. I'm not unwilling to try it, but as an exclusively Toyota and Honda owner I wanted to get that first year report. Wow - this is surprising. I feel this is just accepted that you won't beat the reliability of Toyota or Honda. It seems like going with the Durango...
by letsgobobby
Wed Jul 23, 2014 10:40 am
 
Forum: Personal Consumer Issues
Topic: New vehicle...GMC Acadia, Chevy Traverse, or Buick Enclave?
Replies: 58
Views: 4625

Re: P/E Ratio: How do YOU interpret/use it?

At current pe10 I am particularly likely to buy stocks in taxable. At lower pe10 I am more likely to buy stocks in 529. Basically I since the risk of loss increases as pe10 increases, I don't want to give up a possible future tax loss harvest.
by letsgobobby
Wed Jul 23, 2014 2:44 am
 
Forum: Investing - Theory, News & General
Topic: P/E Ratio: How do YOU interpret/use it?
Replies: 26
Views: 1342

Re: 2 days in Portland, suggestions?

If you haven't already, worth watching an episode or two of Portlandia before you go. When people hear we are from (near) PDX, the first thing they always ask us is, 'Is it really like Portlandia?' Our answer is, "Yes, sometimes it is!"
by letsgobobby
Tue Jul 22, 2014 8:39 pm
 
Forum: Personal Consumer Issues
Topic: 2 days in Portland, suggestions?
Replies: 34
Views: 1330

Re: 2 days in Portland, suggestions?

you can drive by Multnomah falls, but go about 10 miles further and do the hike to Wahclella falls or Eagle Creek/Punchbowl falls instead. Stroll Alberta, Hawthorne, Belmont, NW 23rd. Eat? anywhere. Drink - beer and wine. I think we're up to 40 breweries now, maybe more? If you're in town on a Satur...
by letsgobobby
Tue Jul 22, 2014 5:30 pm
 
Forum: Personal Consumer Issues
Topic: 2 days in Portland, suggestions?
Replies: 34
Views: 1330

Re: 35K maximum retirement contribution a year for a person?

Are either of your plans available in a Roth version? That may be preferable if your taxable income is below 5 figures.
by letsgobobby
Tue Jul 22, 2014 4:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: 35K maximum retirement contribution a year for a person?
Replies: 16
Views: 1431

Re: Lost a lot in stocks and starting fresh: Please Help

I don't think your approach is all bad, it's very similar to the Dave Ramsey approach in that it requires only a tiny emergency fund first, then attack all debt. However, his plan would have you stop all retirement contributions and also be far more aggressive in lifestyle cutbacks to get where you ...
by letsgobobby
Tue Jul 22, 2014 4:01 pm
 
Forum: Personal Finance (Not Investing)
Topic: Lost a lot in stocks and starting fresh: Please Help
Replies: 90
Views: 11982

Re: Establishing a dementia trust

This is governed by state law. In Washington state, and generally speaking, 'competency' is a legal determination, made by a judge or court. The court's findings depend on the evidence presented, which typically includes medical evaluations. These can get pretty nasty, if (for instance) an adult chi...
by letsgobobby
Tue Jul 22, 2014 3:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: Establishing a dementia trust
Replies: 8
Views: 803

Re: Thoughts on [not] rebalancing

If you were in 100% stocks, then what was there to rebalance? This is exactly the point. Rebalancing primarily refers to rebalancing between stocks and bonds. If you had no bonds, you had nothing to rebalance. You are 100% stocks and apparently happily so. I would just keeping whistling the happy s...
by letsgobobby
Tue Jul 22, 2014 3:17 pm
 
Forum: Investing - Theory, News & General
Topic: Thoughts on [not] rebalancing
Replies: 12
Views: 665

Re: Reverse Savings Rates

Why not the best of both worlds? Just start out saving 50%, and increase from there.
by letsgobobby
Tue Jul 22, 2014 2:03 pm
 
Forum: Investing - Theory, News & General
Topic: Reverse Savings Rates
Replies: 5
Views: 1003

Re: P/E Ratio: How do YOU interpret/use it?

I don't use PE, but at the extremes most measures of market value line up: PE10, B/M, Div yield, P/S, whatever. It's not hard to tell when the market is much more or less expensive than usual. If you want to do anything about it, that's a different story. At extremely high stock market valuations, I...
by letsgobobby
Tue Jul 22, 2014 1:33 pm
 
Forum: Investing - Theory, News & General
Topic: P/E Ratio: How do YOU interpret/use it?
Replies: 26
Views: 1342

Re: What to do in a market correction

That is the risk everyone underestimates, losing one's shirt (portfolio) and one's loom (job) at the same time. It's one thing to say you'll stay the course, it's another to actually have the guts to do it in the teeth of a brutal decline, and still another to have the actual ability (new money) to ...
by letsgobobby
Tue Jul 22, 2014 1:28 pm
 
Forum: Investing - Theory, News & General
Topic: What to do in a market correction
Replies: 32
Views: 3060

Re: Beneficiaries

aptenodytes, as you say each situation is unique and of course you know yours best. I would only encourage everyone to think about these issues not as a matter of trust, but as a matter of risk. I also trust my wife 110%; however, even trustworthy people get into difficult straits sometimes, and oft...
by letsgobobby
Tue Jul 22, 2014 12:02 pm
 
Forum: Personal Finance (Not Investing)
Topic: Beneficiaries
Replies: 23
Views: 1364

Re: Beneficiaries

If you worry about your children then you should not leave everything to your wife. Creditors, including her future spouses, may lay claim to those assets you anticipate would go to your surviving children. Condon and Condon can be read as cautionary tale, campfire ghost story, or marketing schtick....
by letsgobobby
Tue Jul 22, 2014 11:45 am
 
Forum: Personal Finance (Not Investing)
Topic: Beneficiaries
Replies: 23
Views: 1364

Re: Will baby boomers retiring spell doom for the markets

I still have concerns. While international investors might theoretically buy/support US equities, the fact is the world is aging just as rapidly as the United States, and in the developed world and China even more quickly. Western Europe, Japan, and China all have much uglier population pyramids tha...
by letsgobobby
Tue Jul 22, 2014 11:42 am
 
Forum: Investing - Theory, News & General
Topic: Will baby boomers retiring spell doom for the markets
Replies: 45
Views: 5298

Re: Beneficiaries

Your imagination hasn't read Condon and Condon.

http://www.amazon.com/Beyond-Grave-revi ... 0060936312
by letsgobobby
Tue Jul 22, 2014 11:33 am
 
Forum: Personal Finance (Not Investing)
Topic: Beneficiaries
Replies: 23
Views: 1364

Re: Beneficiaries

We also have young children and this is what we have done (brief outline). Approximately 1/2 of our estate is left to the surviving spouse in trust, from which he/she can withdraw earnings at will, or principle with the blessing of a corporate co-trustee. Upon surviving spouse's death, our children ...
by letsgobobby
Tue Jul 22, 2014 9:46 am
 
Forum: Personal Finance (Not Investing)
Topic: Beneficiaries
Replies: 23
Views: 1364

Re: Beneficiaries

You keep saying you have enough to not need life insurance but that would be very unusual for a new parent. Are you sure? Does your sig other work?
by letsgobobby
Tue Jul 22, 2014 8:58 am
 
Forum: Personal Finance (Not Investing)
Topic: Beneficiaries
Replies: 23
Views: 1364

Re: New vehicle...GMC Acadia, Chevy Traverse, or Buick Encla

Hi, I haven't bought yet and not sure when we will. So close to the Durango but wanted to see a report on first year reliability. Also for us this is clearly a 'want' more than a 'need' and it's hard for me to justify the dollars on what is essentially a third vehicle. But maybe by the fall. For us ...
by letsgobobby
Tue Jul 22, 2014 12:37 am
 
Forum: Personal Consumer Issues
Topic: New vehicle...GMC Acadia, Chevy Traverse, or Buick Enclave?
Replies: 58
Views: 4625

Re: New vehicle...GMC Acadia, Chevy Traverse, or Buick Encla

A few hundred in gas and insurance costs probably shouldn't be the deciding factor when exploring $40,000-$50,000 vehicles. Just my opinion. Maybe those factors could be a tiebreaker. For safety, reliability, cargo of your choices I would go Chevy traverse. Durango only if you want the towing and yo...
by letsgobobby
Mon Jul 21, 2014 6:58 pm
 
Forum: Personal Consumer Issues
Topic: New vehicle...GMC Acadia, Chevy Traverse, or Buick Enclave?
Replies: 58
Views: 4625
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