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Re: What Movie Have You Recently Watched?

Saw Boyhood in a theater in Bangkok last night. Felt quite a bit of homesickness, both in the sense of time and place, as an American expat with a younger brother roughly the age of the protagonist. Felt much nostalgia from the past decade; for example, one scene reminded me clearly of when my littl...
by market timer
Wed Sep 03, 2014 1:29 am
 
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 66
Views: 2425

Re: Overseas Retirement

My personal opinion is that, for the most part, when you include ALL costs, it is just as cheap or cheaper to live in an inexpensive part of the USA than it is to live abroad. There are many other reasons to live abroad, of course. And it's true that, for me, my life is more interesting and active ...
by market timer
Tue Sep 02, 2014 2:55 am
 
Forum: Personal Finance (Not Investing)
Topic: Overseas Retirement
Replies: 3
Views: 534

Re: What Movie Have You [Recently] Watched?

Haven't watched many movies this year, maybe only three so far. Most recent was Chungking Express, a 1994 Hong Kong movie. I enjoyed it and it's free on youtube.

Looking forward to watching Boyhood in the theater this week.
by market timer
Mon Sep 01, 2014 8:44 pm
 
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 66
Views: 2425

Re: How to become a millionaire retiree -- then and now

Does anybody remember the starting salary of Michael Lewis at Salomon Brothers in 1986 as noted in his book Liar's Poker ? $48K/yr as an associate in 1985. http://www.cbsnews.com/news/what-is-michael-lewis-worth-today/ That's worth $106K/yr today. For reference, that's what first-year analysts (fre...
by market timer
Sun Aug 31, 2014 11:26 pm
 
Forum: Investing - Theory, News & General
Topic: How to become a millionaire retiree -- then and now
Replies: 62
Views: 7347

Re: Only need $315k non-retirement $ to retire at Age 43?

If you neglect the penalties by taking money out early from the 401(k) -- worst case you run completely out of the $715k by around age 68. OP should start converting the IRA to a Roth the first year he is retired. I believe after five years, these converted funds can be withdrawn tax-free and penal...
by market timer
Fri Aug 29, 2014 2:28 am
 
Forum: Personal Finance (Not Investing)
Topic: Only need $315k non-retirement $ to retire at Age 43?
Replies: 36
Views: 5205

Re: Only need $315k non-retirement $ to retire at Age 43?

I could probably buy into the $15k SS payment 20 years down the road -- which is roughly $690 per month in todays dollars. Can the OP live on $690 per month today. If not where is the other money coming from for retirement, as the $300k will surely be gone in 20 years, at age 63? Is there some othe...
by market timer
Fri Aug 29, 2014 1:30 am
 
Forum: Personal Finance (Not Investing)
Topic: Only need $315k non-retirement $ to retire at Age 43?
Replies: 36
Views: 5205

Re: Only need $315k non-retirement $ to retire at Age 43?

As noted above, you need to adjust for inflation. That said, I think $400K in retirement accounts and $315K in taxable is actually enough for a 43-year-old single person to retire to a modest standard of living (~$30K/year), assuming one is eligible for Social Security. Keep in mind, you'll likely ...
by market timer
Thu Aug 28, 2014 9:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: Only need $315k non-retirement $ to retire at Age 43?
Replies: 36
Views: 5205

Re: If you had an extra $100,000

I'd put it in a high yield savings account and add it to the down payment on my next house.
by market timer
Thu Aug 28, 2014 12:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: If you had an extra $100,000
Replies: 58
Views: 5287

Re: Only need $315k non-retirement $ to retire at Age 43?

As noted above, you need to adjust for inflation. That said, I think $400K in retirement accounts and $315K in taxable is actually enough for a 43-year-old single person to retire to a modest standard of living (~$30K/year), assuming one is eligible for Social Security. Keep in mind, you'll likely g...
by market timer
Thu Aug 28, 2014 12:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: Only need $315k non-retirement $ to retire at Age 43?
Replies: 36
Views: 5205

Re: What Book Are You Currently Reading? Part V

The Moviegoer, Walker Percy
by market timer
Wed Aug 27, 2014 11:51 am
 
Forum: Personal Consumer Issues
Topic: What Book Are You Currently Reading? Part V
Replies: 3280
Views: 1118745

Re: Family loan implications

Why are people suggesting making a gift out of the loan? If the brother did not pay back his loan, it seems to me the parents should at least try to get a tax break from the loss. Because he's their son. As you point out in your first post the IRS may consider the forgiven loan as income, and maybe...
by market timer
Wed Aug 27, 2014 12:41 am
 
Forum: Personal Finance (Not Investing)
Topic: Family loan implications
Replies: 12
Views: 613

Re: Family loan implications

Why are people suggesting making a gift out of the loan? If the brother did not pay back his loan, it seems to me the parents should at least try to get a tax break from the loss.
by market timer
Wed Aug 27, 2014 12:24 am
 
Forum: Personal Finance (Not Investing)
Topic: Family loan implications
Replies: 12
Views: 613

Re: Family loan implications

I'm not an accountant, but it sounds like in the worst case your parents would write it off as uncollectable debt and your brother would claim it on his taxes as cancellation of debt. In your parents' case, this would be a tax deduction. In your brother's case, it would be considered taxable income ...
by market timer
Tue Aug 26, 2014 11:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: Family loan implications
Replies: 12
Views: 613

Re: Purchasing I bond vs. paying off student loan

This is a relatively small loan balance, so I can see the rationale for going ahead and paying it off. On the other hand, it is a fairly straightforward matter to construct a risk-free arbitrage against this loan (assuming it still has a long maturity) using a combination of comparable duration Trea...
by market timer
Tue Aug 26, 2014 9:56 pm
 
Forum: Personal Finance (Not Investing)
Topic: Purchasing I bond vs. paying off student loan
Replies: 19
Views: 1015

Re: What are you up YTD?

I'm almost entirely in cash right now, but am up just over 20% ytd, mostly from Treasuries.
by market timer
Tue Aug 26, 2014 12:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: What are you up YTD?
Replies: 94
Views: 6325

Re: Telling my friends I paid off my house was a mistake.

I don't see the harm in OP's friends' comments. Not many people make a serious goal out of financial independence, and I believe that many are curious to learn more about this alternative lifestyle. Asking OP why he doesn't downsize to buy a boat might just be a way of asking him to explain more abo...
by market timer
Tue Aug 26, 2014 12:35 am
 
Forum: Personal Finance (Not Investing)
Topic: Telling my friends I paid off my house was a mistake.
Replies: 73
Views: 10167

Re: What 5 stocks can I own forever?

GOOG
BRK-A/B
GE
JNJ
XOM
by market timer
Mon Aug 25, 2014 12:02 am
 
Forum: Investing - Help with Personal Investments
Topic: What 5 stocks can I own forever?
Replies: 58
Views: 4455

Re: Zegna Suits

I've only been to a few weddings, but isn't the groom supposed to wear a tux? Anyhow, my two cents -- you should spend money on what you value.
by market timer
Sun Aug 24, 2014 11:09 pm
 
Forum: Personal Consumer Issues
Topic: Zegna Suits
Replies: 197
Views: 8937

Re: HELOC + Margin = $200k to play with

Gambler wrote:and Tanelorn, how did u get 2.63%?
I'd do it in a heart beat if leveraging $200k is just going to cost 2.63% :moneybag

How many dollars in interest will you pay to borrow $200K for one year?
by market timer
Thu Aug 21, 2014 10:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: HELOC + Margin = $200k to play with
Replies: 24
Views: 1764

Re: Using Credit Card to Pay Off Student Loans

My plan is to aggressively pay down the loan over the next 5 months. I have a credit card that is 0% APR until September 2015. Would I be crazy to use the card to pay off the $8,000 now and then just pay off the credit card over the next 5 months instead, saving the 6.8% interest on the loan? Seems...
by market timer
Thu Aug 21, 2014 8:42 am
 
Forum: Personal Finance (Not Investing)
Topic: Using Credit Card to Pay Off Student Loans
Replies: 24
Views: 1133

Re: Case Story/Plan: "Bank on yourself" to pay student loan.

I ran the numbers, and 'pay the minimum' saved about $1000 over 25 years, compared to the scenario of a modest increase in salary. Tax rate on the forgiveness was assumed at 15% marginal (this person does not have enough assets to retire prior to the forgiveness). The downsides of forgiveness inclu...
by market timer
Thu Aug 21, 2014 4:37 am
 
Forum: Personal Finance (Not Investing)
Topic: Case Story/Plan: "Bank on yourself" to pay student loan.
Replies: 12
Views: 1945

Re: Case Story/Plan: "Bank on yourself" to pay student loan.

From the info you've given, I'd be more inclined not to pay anything beyond the minimum on the loans. If, in 25 years, her loans are forgiven, and if that is a taxable event, the taxes are likely to be very low. She'll be in her mid 60s by then, perhaps retired, when she receives loan forgiveness. $...
by market timer
Thu Aug 21, 2014 2:07 am
 
Forum: Personal Finance (Not Investing)
Topic: Case Story/Plan: "Bank on yourself" to pay student loan.
Replies: 12
Views: 1945

Re: Do we plunder our retirement to pay off student debt?

I hadn't considered 401k loan, but that looks like a decent option. That was the option I chose a few years ago. It is important to consider how stable is your job, and whether you'd need to pay back the loan immediately if you lost your job. I'd much rather pay, say, 4% to myself than 6.8% to a st...
by market timer
Wed Aug 20, 2014 8:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: Do we plunder our retirement to pay off student debt?
Replies: 30
Views: 2606

Re: Do we plunder our retirement to pay off student debt?

A payment towards student loans is like an investment in risk less bonds that yield 6.8%. Which is a great yield for a risk less bond. But you don't get your principal back in the end. So you get a 6.8% return on your 23k for a few years (until they would've been paid off anyway) and then 0% return...
by market timer
Wed Aug 20, 2014 11:09 am
 
Forum: Investing - Help with Personal Investments
Topic: Do we plunder our retirement to pay off student debt?
Replies: 30
Views: 2606

Re: Do we plunder our retirement to pay off student debt?

Yes, I would definitely pay down the student loan debt ASAP. Might be worth taking out a 401K loan to pay off the entire $39K.
by market timer
Wed Aug 20, 2014 10:59 am
 
Forum: Investing - Help with Personal Investments
Topic: Do we plunder our retirement to pay off student debt?
Replies: 30
Views: 2606

Re: What Book Are You Currently Reading? Part V

COLORLESS TSUKURU TAZAKI AND HIS YEARS OF PILGRIMAGE
By Haruki Murakami
Translated by Philip Gabriel
386 pages. Alfred A. Knopf. $25.95.

Latest Murakami novel. I read just about everything he writes.
by market timer
Sun Aug 17, 2014 5:25 am
 
Forum: Personal Consumer Issues
Topic: What Book Are You Currently Reading? Part V
Replies: 3280
Views: 1118745

Re: Is earnings yield real or nominal

I believe E/P is considered a real yield. In fact, it is one predictor of equity real returns.
by market timer
Sat Aug 16, 2014 11:39 pm
 
Forum: Investing - Theory, News & General
Topic: Is earnings yield real or nominal
Replies: 6
Views: 491

Re: Should I use margin to buy a balanced fund?

I just read that this San Diego pension fund is employing a similar strategy now: http://acrossthecurve.com/?p=15935 If this approach is growing more popular, it suggests to me that people may be growing too comfortable with 0% short term rates and a reliable, negative correlation between equities a...
by market timer
Wed Aug 13, 2014 11:04 pm
 
Forum: Investing - Theory, News & General
Topic: Should I use margin to buy a balanced fund?
Replies: 322
Views: 22280

Re: $65k bonus for student loans...considering not taking it

Very interesting dilemma--definitely a sign of the crazy times we live in. I would try to find a way to receive the cash without paying the loans. If that is not possible, celia made some great points. I assume you are currently paying $3K/yr on your loan out of pocket. Is this principal or interest...
by market timer
Tue Aug 12, 2014 1:35 am
 
Forum: Investing - Help with Personal Investments
Topic: $65k bonus for student loans...considering not taking it
Replies: 30
Views: 3311

Re: Help with massive debt repayment

I'd pay off the car loans first, then invest the monthly surplus in taxable.
by market timer
Mon Aug 11, 2014 10:45 am
 
Forum: Personal Finance (Not Investing)
Topic: Help with massive debt repayment
Replies: 27
Views: 2648

Re: How do you address your inlaws and being addressed?

FIL: Dr. [firstname]
MIL: Ma

Wife calls my parents by their first names.
by market timer
Sat Aug 09, 2014 1:40 am
 
Forum: Personal Consumer Issues
Topic: How do you address your inlaws and being addressed?
Replies: 84
Views: 4738

Re: Affording a 1.3 million home?

One final note -- kids are great, but can be stressful. Babies require time and money, and time, and more time. The bay area is not a low-stress place, and financial pressure makes it worse. Be careful that the purchase of an expensive house does not come at the cost of your happiness. ^ This. I'm ...
by market timer
Fri Aug 08, 2014 1:12 am
 
Forum: Personal Finance (Not Investing)
Topic: Affording a 1.3 million home?
Replies: 105
Views: 11054

Re: Attitudes toward inheritances.

Why bequeath a lump sum? Suppose I'm moderately, but not ridiculously well off in my 70s, like net worth $1mn. Why not buy an annuity with that lump sum and give generously periodically while still alive? Then beneficiaries will be happy to see that I'm still alive, and not worry so much about wheth...
by market timer
Thu Aug 07, 2014 12:02 am
 
Forum: Personal Consumer Issues
Topic: Attitudes toward inheritances.
Replies: 113
Views: 10511

Re: Affording a 1.3 million home?

How certain are you that you will continue to live in the Bay Area? An alternative life path that I think you should consider is living where you are for another few years (maybe sell your current home and rent a bigger place as needed), continue working and saving a good deal of money. Then, once y...
by market timer
Wed Aug 06, 2014 11:10 pm
 
Forum: Personal Finance (Not Investing)
Topic: Affording a 1.3 million home?
Replies: 105
Views: 11054

Re: average American eats out 203 times per year

When I worked, I ate out every meal--breakfast, lunch, and dinner. Now that I'm retired, I eat out for dinner 4x per week, about average.
by market timer
Tue Aug 05, 2014 12:37 pm
 
Forum: Personal Consumer Issues
Topic: average American eats out 203 times per year
Replies: 105
Views: 6438

Re: Advice for investing $2922/6mo in subsidized student loa

I'd probably use the cash to buy I bonds. Keep in mind, if you go to grad school, the interest-free period could be considerably longer than 4 years. Consider a Roth IRA also.
by market timer
Tue Aug 05, 2014 3:34 am
 
Forum: Investing - Help with Personal Investments
Topic: Advice for investing $2922/6mo in subsidized student loans?
Replies: 10
Views: 560

Re: HELP! Budget Out of Control

You may be saving more than you think. Paying down student loans is a form of savings. Mortgage payments are also partially a form of savings: I'd argue anything you pay to operate your house (mortgage, property taxes, etc.) in excess of fair market rent is a form of savings. Someone above mentioned...
by market timer
Mon Aug 04, 2014 11:27 pm
 
Forum: Personal Finance (Not Investing)
Topic: HELP! Budget Out of Control
Replies: 47
Views: 3664

Re: How Much Did You Lose Today?

The only thing that matters is where it ends up on the day you liquidate your shares. The intermediate values are irrelevant. While I agree with the sentiment, the expected value at liquidation is a function of those intermediate values. There is one exception: TIPS held to maturity (assuming we ar...
by market timer
Fri Aug 01, 2014 1:49 am
 
Forum: Investing - Help with Personal Investments
Topic: How Much Did You Lose Today?
Replies: 166
Views: 14203

Re: How Much Did You Lose Today?

-0.16%

Considering stocks, bonds, and commodities sold off today, tough not to lose money unless you were short.
by market timer
Fri Aug 01, 2014 12:37 am
 
Forum: Investing - Help with Personal Investments
Topic: How Much Did You Lose Today?
Replies: 166
Views: 14203

Re: Expected Future Yield Curve

If there is no term premium, then the return from owning any Treasury bond for two years should be the same as the current return on 2-year Treasuries, i.e., 0.55%. Using your 2.24% number for the 7-year, that means after two years the 7-year would be expected to become a 5-year yielding roughly 2.9...
by market timer
Thu Jul 31, 2014 1:43 am
 
Forum: Investing - Theory, News & General
Topic: Expected Future Yield Curve
Replies: 22
Views: 1396

Re: How would retiring at 45 change investment strategy?

I'm just starting to look into this issue as well. One thing that concerns me about the 72(t) withdrawals is that, once you start, you have to keep withdrawing the money until you reach 59.5 years of age. Another option that seems more appealing to me is to convert from an IRA to a Roth, then withdr...
by market timer
Wed Jul 30, 2014 6:41 am
 
Forum: Investing - Help with Personal Investments
Topic: How would retiring at 45 change investment strategy?
Replies: 12
Views: 1655

Re: Taking out mortgage with zero down. Smart or no?

Yes it was unfortunate that I bought at the top of the market. Who here wants to guarantee that the market won't go down again? I guess if you can time the real estate market you can time the stock market too, but wait, I thought one of the core principals of Bogleheads is that market timing is a f...
by market timer
Tue Jul 29, 2014 2:08 am
 
Forum: Personal Finance (Not Investing)
Topic: Taking out mortgage with zero down. Smart or no?
Replies: 64
Views: 3256

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

Before deciding whether to contribute to a 401K, IRA, or Roth; whether to pay a tax (and up to what bracket) to convert an IRA to a Roth; whether to take out a 401K loan; whether to pay down student loans or invest in a retirement account; and so on, I asked myself what $1 in each of these accounts ...
by market timer
Tue Jul 29, 2014 12:07 am
 
Forum: Investing - Theory, News & General
Topic: If you tax adjust, how has it changed your life?
Replies: 16
Views: 2102

Re: Student Loans

What are her income and expenses? Any idea how much of the debt is private loans?
by market timer
Sun Jul 27, 2014 11:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: Student Loans
Replies: 3
Views: 495

Re: Should I use margin to buy a balanced fund?

market timer, For futures that are settled daily, an ACH pull with a 3 day clearing delay might not work. It seems a wire has to be initiated from the sending side. TDAmeritrade actually credits my account with ACH transfers the same day they are initiated, provided they are initiated by 5pm NY tim...
by market timer
Sun Jul 27, 2014 6:35 am
 
Forum: Investing - Theory, News & General
Topic: Should I use margin to buy a balanced fund?
Replies: 322
Views: 22280

Re: Should I use margin to buy a balanced fund?

For futures that are settled daily, an ACH pull with a 3 day clearing delay might not work. It seems a wire has to be initiated from the sending side. TDAmeritrade actually credits my account with ACH transfers the same day they are initiated, provided they are initiated by 5pm NY time. Back when I...
by market timer
Sun Jul 27, 2014 5:20 am
 
Forum: Investing - Theory, News & General
Topic: Should I use margin to buy a balanced fund?
Replies: 322
Views: 22280

Re: Should I use margin to buy a balanced fund?

The most efficient setup would be for the brokerage to be attached to the high yield savings account, so that cash could be swept automatically from the savings account to the brokerage daily as futures are marked to market. Is that something brokerages will allow setting up for automatic use to me...
by market timer
Sun Jul 27, 2014 12:58 am
 
Forum: Investing - Theory, News & General
Topic: Should I use margin to buy a balanced fund?
Replies: 322
Views: 22280

Re: Should I use margin to buy a balanced fund?

Of course the monitoring/management costs that exist for an individual would exist for an institutional investor also. It just doesn't seem like a very good use of the investor's time to monitoring just his/her own account. It seems one employee could monitor many other investors' accounts, and thu...
by market timer
Sat Jul 26, 2014 11:25 pm
 
Forum: Investing - Theory, News & General
Topic: Should I use margin to buy a balanced fund?
Replies: 322
Views: 22280

Re: Student Loan question regarding 'Pay Ahead Status'

I paid some AES loans in advance a few years ago. The way it showed up on my account is my principal balance was reduced by the amount I paid ahead and I was not required to make any payments for the next few months, though interest did accrue. I found this preferable to the alternative, more commo...
by market timer
Thu Jul 24, 2014 7:57 pm
 
Forum: Personal Finance (Not Investing)
Topic: Student Loan question regarding 'Pay Ahead Status'
Replies: 4
Views: 513

Re: Student Loan question regarding 'Pay Ahead Status'

So anyway, there is this policy (or scheme) called "Pay Ahead" Status. If I choose to pay more than my monthly rate, the additional payment DOES NOT GO to reducing the principal; it goes to the next month's payment (unless you inform them you want to be removed from the default 'Pay Ahead...
by market timer
Thu Jul 24, 2014 1:39 am
 
Forum: Personal Finance (Not Investing)
Topic: Student Loan question regarding 'Pay Ahead Status'
Replies: 4
Views: 513
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