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Re: Mortgage Debt in Retirement?

Mortgage or not doesn't necessarily impact your taxable income that much. Really? Let's say you have a $1,500 mortgage payment, that means you are paying $18,000 per year. If you are in the 25% marginal tax bracket, you need to have $24,000 more income to pay the mortgage as compared to if you did ...
by mptfan
Fri Mar 27, 2015 11:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: Mortgage Debt in Retirement?
Replies: 60
Views: 3123

Re: Mortgage Debt in Retirement?

Read a book not too long ago that made a convincing case that you should always hold the maximum possible mortgage on any house that you own, even if you have to borrow against the equity. Was the book authored by Rick Edelman? His reasons for carrying a mortgage are far from convincing, I would ch...
by mptfan
Fri Mar 27, 2015 11:17 pm
 
Forum: Personal Finance (Not Investing)
Topic: Mortgage Debt in Retirement?
Replies: 60
Views: 3123

Re: Mortgage Debt in Retirement?

midareff wrote:I may be an outlier on this, but I see nothing wrong with a 3% mortgage which has the interest tax deductible.

Would your opinion change if you get no tax deduction?
by mptfan
Fri Mar 27, 2015 3:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: Mortgage Debt in Retirement?
Replies: 60
Views: 3123

Re: Mortgage Debt in Retirement?

The counter argument of course is that the money you put on the house could have been put in the market instead and could have given you a much larger return on that money allowing you to also retire sooner. I don't understand what you mean by "money you put on the house"? If I follow my ...
by mptfan
Fri Mar 27, 2015 3:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: Mortgage Debt in Retirement?
Replies: 60
Views: 3123

Re: 50 K Credit Card Debt - any suggestions?

You can lead a horse to water...

It is likely that nothing you say to your 61 year old brother will change how he handles money at this point in his life.
by mptfan
Fri Mar 27, 2015 12:55 pm
 
Forum: Personal Finance (Not Investing)
Topic: 50 K Credit Card Debt - any suggestions?
Replies: 5
Views: 548

Re: Mortgage Debt in Retirement?

I plan to pay off my mortgage long before I retire because if I do not have a mortgage payment in retirement, then I will need less income in retirement, and if I need less income in retirement, I will not need as much retirement savings in order to retire, so I view a paid off mortgage as a form of...
by mptfan
Fri Mar 27, 2015 9:45 am
 
Forum: Personal Finance (Not Investing)
Topic: Mortgage Debt in Retirement?
Replies: 60
Views: 3123

Re: Wise move to move some $ to cash before bear market?

I knew I would get these responses. Market timing. But, it sure seems if somebody took out 30% and put it in cash at the right time, he would be sitting pretty. I know, at the right time... Think about it...the author of that article says that a bear market is coming...isn't that always the case? I...
by mptfan
Thu Mar 26, 2015 10:25 am
 
Forum: Investing - Theory, News & General
Topic: Wise move to move some $ to cash before bear market?
Replies: 64
Views: 5071

Re: Wise move to move some $ to cash before bear market?

I just read an article that described how to prepare for a bear market and listed the history of the previous bear markets over time. Since we are at an all time high , a bear market is coming , nobody knows when. The author suggested taking 20%- 30 % and putting it in cash to hold and buy in the b...
by mptfan
Thu Mar 26, 2015 10:16 am
 
Forum: Investing - Theory, News & General
Topic: Wise move to move some $ to cash before bear market?
Replies: 64
Views: 5071

Re: Google Docs changepct vs returnday

I can't speak for google docs and how they construct their formulas, but there is a difference between change in NAV and return. Let's use a simple example of a stock fund that starts out the day with a NAV of 10.00, and distributes a dividend of .2 and ends up with a NAV at the end of the day of 9....
by mptfan
Thu Mar 26, 2015 12:06 am
 
Forum: Investing - Theory, News & General
Topic: Google Docs changepct vs returnday
Replies: 2
Views: 455

Re: HSA deadline for tax deduction eligibility

I also agree. The only relevant issues I am aware of are; You can not take qualified distributions for expenses that occur before you open the HSA. You have until April 15th 2015 to make contributions for 2014. I see nothing in IRS Publication 969, IRS Notices 2004-2/2004-50, U.S. Code Title 26 › S...
by mptfan
Wed Mar 25, 2015 8:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: HSA deadline for tax deduction eligibility
Replies: 10
Views: 628

Re: Going over gift tax limits

Afty wrote:Honestly, I think many people misunderstand the tax implications and believe that they will have to pay gift tax on anything over $14k. I know I did until I started reading Bogleheads. I suspect that's the source of all the concern about not exceeding the annual exclusion.

This.
by mptfan
Tue Mar 24, 2015 3:58 pm
 
Forum: Personal Finance (Not Investing)
Topic: Going over gift tax limits
Replies: 20
Views: 1627

Re: Why Bonds With 20 Year Horizon?

if you believe that a stock will beat a bond over a 20 year period with 100% confidence, you have no reason to hold the bond. All that matters is the total return at the end. This is not true because humans are not computers, we are imperfect beings with personalities and emotions and biases. It is...
by mptfan
Tue Mar 24, 2015 1:12 pm
 
Forum: Investing - Theory, News & General
Topic: Why Bonds With 20 Year Horizon?
Replies: 72
Views: 5049

Re: Help me say good bye to Edward Jones.

[*] What do I do with the American Funds I currently have? I have paid a front end load on them, so I am hesitant to sell so that I can get the money into an investment with lower fees. There is nothing you can do to recover the front end loads you already paid, so that should have no impact on you...
by mptfan
Tue Mar 24, 2015 12:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help me say good bye to Edward Jones.
Replies: 5
Views: 650

Re: Why Bonds With 20 Year Horizon?

if you believe that a stock will beat a bond over a 20 year period with 100% confidence, you have no reason to hold the bond. All that matters is the total return at the end. This is not true because humans are not computers, we are imperfect beings with personalities and emotions and biases. It is...
by mptfan
Tue Mar 24, 2015 12:52 pm
 
Forum: Investing - Theory, News & General
Topic: Why Bonds With 20 Year Horizon?
Replies: 72
Views: 5049

Re: Advice for good friend

I think I broke both of these rules. Was just trying to help but I will let her setup a meeting if she wants to discuss more. I understand that you are trying to help, but unless she asks for your help, I would stay out of it. Even if she does ask for your help, I would stay out of it unless her hu...
by mptfan
Tue Mar 24, 2015 12:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: Advice for good friend
Replies: 38
Views: 3284

Re: Advice for good friend

Did your friend ask for your advice? Did her husband ask for your advice? There is a potential in this case of violating two wise rules: 1) Don't give unsolicited financial advice. 2) Don't get involved in the finances of a married couple. (Giving advice to one spouse without the other counts as get...
by mptfan
Mon Mar 23, 2015 6:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: Advice for good friend
Replies: 38
Views: 3284

Re: Definition of financial independence?

I suppose a person could say to themselves, "I figured out how much money I need to live the rest of my life, while sleeping on park benches. I'll save a ton of money by not paying rent/mortgage and utilities!" That person could, I suppose, save a lot less money and retire earlier because...
by mptfan
Mon Mar 23, 2015 5:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: Definition of financial independence?
Replies: 52
Views: 4781

Re: What's a good digital antenna?

Indeed. The galling part (to me) about the cable companies is that they still have the nerve to charge you extra for HD, as if it's a premium-only feature. It's available for free OTA with any old antenna, but when it comes to cable, HD costs extra? Bah. Part of the reason I cut the cord. I agree! ...
by mptfan
Fri Mar 20, 2015 9:51 am
 
Forum: Personal Consumer Issues
Topic: What's a good digital antenna?
Replies: 28
Views: 2087

Re: What's a good digital antenna?

For what it's worth, there's no such thing as a "digital antenna". Any TV antenna will pick up VHF and UHF, which digital broadcasts are still transmitted on. An old rabbit ears antenna will pick up the signals. Exactly. There is no such thing as a digital antenna , that is marketing hype...
by mptfan
Fri Mar 20, 2015 8:13 am
 
Forum: Personal Consumer Issues
Topic: What's a good digital antenna?
Replies: 28
Views: 2087

Re: Larry on interest rates and bond term risk

Bonds in the portfolio should be the easiest part of investing — if only investors would focus on high-quality bonds or funds, settle on an intermediate duration of 4-5 years, then devote their time and energy saved to their joys in life. What if their joy in life is to talk about investing? :wink:
by mptfan
Thu Mar 19, 2015 3:43 pm
 
Forum: Investing - Theory, News & General
Topic: Larry on interest rates and bond term risk
Replies: 12
Views: 1655

American Express joins Schwab to introduce new credit cards

American Express has signed a new deal with Charles Schwab Corp (NYSE:SCHW). This will be a joint venture and the issued cards will carry the names of both companies. However, details related to the usage of cards have not yet been disclosed; the officials said that the details will be shared prior ...
by mptfan
Thu Mar 19, 2015 2:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: American Express joins Schwab to introduce new credit cards
Replies: 3
Views: 1146

Re: Definition of financial independence?

This thread seems to be over-complicating it. I would say you have financial independence when you have enough money to live the rest of your life without being gainfully employed. And I think you are over-simplifying it. Some people "have enough money" to live the rest of their lives wit...
by mptfan
Wed Mar 18, 2015 5:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: Definition of financial independence?
Replies: 52
Views: 4781

Re: Definition of financial independence?

So, if I have $10 million under my mattress, not making a penny, I'm not financially independent? I think that you would be, especially if you were older, say over 65. So I agree that there should be an "or" added to the definition that says "...or if you have sufficient assets so th...
by mptfan
Tue Mar 17, 2015 11:10 am
 
Forum: Personal Finance (Not Investing)
Topic: Definition of financial independence?
Replies: 52
Views: 4781

Re: Poll: When to pay down debt rather than invest

If my answer is 6.5%, which option should I select?
by mptfan
Mon Mar 16, 2015 4:58 pm
 
Forum: Investing - Theory, News & General
Topic: Poll: When to pay down debt rather than invest
Replies: 49
Views: 3883

Re: Steering family away from costly Financial Adviser or MY

Did your father ask for your advice? (Note that I didn't ask if "the topic came up") If the answer is yes, tell him what you think and let him decide. If the answer is no, keep your mouth shut and stay out of it. The less people talk about financial issues, the easier it is for financial ...
by mptfan
Mon Mar 16, 2015 10:28 am
 
Forum: Investing - Help with Personal Investments
Topic: Steering family away from costly Financial Adviser or MYOB?
Replies: 28
Views: 2247

Re: Steering family away from costly Financial Adviser or MY

Did your father ask for your advice? (Note that I didn't ask if "the topic came up") If the answer is yes, tell him what you think and let him decide. If the answer is no, keep your mouth shut and stay out of it. In my experience, someone who previously changed your diapers is unlikely to ...
by mptfan
Mon Mar 16, 2015 9:36 am
 
Forum: Investing - Help with Personal Investments
Topic: Steering family away from costly Financial Adviser or MYOB?
Replies: 28
Views: 2247

Re: What are some common misconceptions found in this forum?

SpringMan wrote:One thing that I find strange is folks posting here on Bogleheads that can't spell Bogle. I keep seeing Bogel, Boggle and other variants.

Yea, and some people think that principle is the same as principal. That drives me nuts. lol
by mptfan
Fri Mar 13, 2015 1:28 pm
 
Forum: Personal Finance (Not Investing)
Topic: What are some common misconceptions found in this forum?
Replies: 207
Views: 16441

Re: SSA Retirement Estimator

ddurrett896 wrote:I've ways wondered if the projected SS amounts shown under your account based on today's dollars or 2050 dollars (when I turn 70)?

Today's dollars.
by mptfan
Thu Mar 12, 2015 4:45 pm
 
Forum: Personal Finance (Not Investing)
Topic: SSA Retirement Estimator
Replies: 6
Views: 1040

Re: Vanguard Total International Bond Index Fund

You should not expect capital appreciation from an investment grade bond fund. Over time, almost all of the return of an investment grade bond fund will come from dividend payments, not capital return. The NAV of the fund will fluctuate but average out to a net zero effect in the long run and has a ...
by mptfan
Thu Mar 12, 2015 4:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard Total International Bond Index Fund
Replies: 5
Views: 916

Re: Edward Jones Account Closing Fees

lcs wrote:Because of their ambiguous wording, it really feels like they are being manipulative on purpose.

Are you saying that EJ is being manipulative on purpose to charge more fees? What a shock!
by mptfan
Thu Mar 12, 2015 11:23 am
 
Forum: Investing - Help with Personal Investments
Topic: Edward Jones Account Closing Fees
Replies: 90
Views: 6828

Re: What are some common misconceptions found in this forum?

Bonds are only for safety, so you should only take risks on the equity side.
by mptfan
Wed Mar 11, 2015 8:55 pm
 
Forum: Personal Finance (Not Investing)
Topic: What are some common misconceptions found in this forum?
Replies: 207
Views: 16441

Re: How Many Credit Cards Do You Actually Use?

I have two and I use two.
by mptfan
Sun Mar 08, 2015 8:41 am
 
Forum: Personal Finance (Not Investing)
Topic: How Many Credit Cards Do You Actually Use?
Replies: 67
Views: 4446

Re: Bonds, REITs, Utilities, Commodities and Stocks down - W

The high yield bond fund went from 6.05 to 6.04. Oh, the horror! lol During the financial crises, the high yield bond fund dropped under $4.00 a share. True, but by the end of 2009, the NAV was back up to 5.47, and the total return in 2009 was 39.09%. I'm sure you would agree with me that a true Bo...
by mptfan
Sat Mar 07, 2015 12:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: Bonds, REITs, Utilities, Commodities and Stocks down - Wow
Replies: 66
Views: 4254

Re: Bonds, REITs, Utilities, Commodities and Stocks down - W

The high yield bond fund went from 6.05 to 6.04. Oh, the horror! lol During the financial crises, the high yield bond fund dropped under $4.00 a share. True, but by the end of 2009, the NAV was back up to 5.47, and the total return in 2009 was 39.09%. I'm sure you would agree with me that a true Bo...
by mptfan
Sat Mar 07, 2015 11:10 am
 
Forum: Investing - Help with Personal Investments
Topic: Bonds, REITs, Utilities, Commodities and Stocks down - Wow
Replies: 66
Views: 4254

Re: Bonds, REITs, Utilities, Commodities and Stocks down - W

The high yield bond fund went from 6.05 to 6.04. Oh, the horror! lol
by mptfan
Sat Mar 07, 2015 8:47 am
 
Forum: Investing - Help with Personal Investments
Topic: Bonds, REITs, Utilities, Commodities and Stocks down - Wow
Replies: 66
Views: 4254

Re: safest bond fund to buy right now?

The Vanguard High Yield Corporate bond fund, because it is the least sensitive to rising interest rates. See my posts in this thread... https://www.bogleheads.org/forum/viewtopic.php?f=10&t=159803 The proof is in the pudding....yesterday almost everything was down across the board because the ma...
by mptfan
Sat Mar 07, 2015 8:34 am
 
Forum: Investing - Help with Personal Investments
Topic: safest bond fund to buy right now?
Replies: 8
Views: 839

Re: When will / did you claim Social Security benefits?

Wildebeest wrote:70.5

Really? I was under the impression that there is no benefit to waiting past the age of 70, and if you wait beyond that point, you are just throwing away benefits for no reason. Am I wrong about that?
by mptfan
Fri Mar 06, 2015 5:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: When will / did you claim Social Security benefits?
Replies: 133
Views: 9624

Re: Reasons not to use Total Bond Market?

If you count ETFs as funds (well, they're of the exchange-traded variety), I think one can safely say the extended duration treasury fund (EDV, 20-30 year STRIPS) is riskier than the consumer staples / S&P 500 / total world stock fund, whichever of those you think is least risky. Strictly speak...
by mptfan
Thu Mar 05, 2015 4:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: Reasons not to use Total Bond Market?
Replies: 83
Views: 7083

Re: Reasons not to use Total Bond Market?

The other argument for advocates of taking risk on the equity side is 2008 when investment grade corporates dropped more than treasuries. However, they rebounded in 2009 and the total return of these two years, if my memory is correct, was in favor of the coprorates. I agree. It is amusing to me th...
by mptfan
Thu Mar 05, 2015 3:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Reasons not to use Total Bond Market?
Replies: 83
Views: 7083

Re: Reasons not to use Total Bond Market?

Some people forget that the riskiest bond fund at Vanguard is safer than the safest stock fund at Vanguard. This is not true. On a risk adjusted basis, stocks and bonds perform about as well. I didn't say risk adjusted. The fact is that bond funds are safer than stock funds. Period. Can you please ...
by mptfan
Thu Mar 05, 2015 3:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: Reasons not to use Total Bond Market?
Replies: 83
Views: 7083

Re: Reasons not to use Total Bond Market?

Isn't "high yield corporate bonds" a fancy way of saying junk bonds? No, "junk bonds" is a pejorative way of describing high yield bonds. Look at the official name of Vanguard's high yield fund.... "Vanguard High-Yield Corporate Fund." Notice that Vanguard did not call...
by mptfan
Thu Mar 05, 2015 3:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: Reasons not to use Total Bond Market?
Replies: 83
Views: 7083

Re: Reasons not to use Total Bond Market?

I first encountered this stick-to-Treasury-quality-on-the-bond-side argument in David Swensen's Unconventional Success. I don't have the book at hand now, but my (possibly faulty) recollection is that his reasons included: (1) Treasury issues are virtually certain never to default; (2) If corporate...
by mptfan
Thu Mar 05, 2015 11:44 am
 
Forum: Investing - Help with Personal Investments
Topic: Reasons not to use Total Bond Market?
Replies: 83
Views: 7083

Re: Reasons not to use Total Bond Market?

For retirees, whose fixed income portion of their portfolio is quite high, income is an important expectation from their bond portfolio. Having greater income from increasing the corporate bond portion creates only a slight increase in risk compared to raising the equities portion. +1. Some people ...
by mptfan
Thu Mar 05, 2015 11:19 am
 
Forum: Investing - Help with Personal Investments
Topic: Reasons not to use Total Bond Market?
Replies: 83
Views: 7083

Re: Reasons not to use Total Bond Market?

2) Take your risk on the equity side so limit your bonds to Treasuries and maybe short term high quality Corporates. I hear this so often, but can you tell me the basis of this reasoning? I think this has become one of those oft repeated mantras that has become accepted as zeitgeist on this forum, ...
by mptfan
Thu Mar 05, 2015 11:17 am
 
Forum: Investing - Help with Personal Investments
Topic: Reasons not to use Total Bond Market?
Replies: 83
Views: 7083

Re: Reasons not to use Total Bond Market?

2) Take your risk on the equity side so limit your bonds to Treasuries and maybe short term high quality Corporates. I hear this so often, but can you tell me the basis of this reasoning? I think this has become one of those oft repeated mantras that has become accepted as zeitgeist on this forum, ...
by mptfan
Thu Mar 05, 2015 10:01 am
 
Forum: Investing - Help with Personal Investments
Topic: Reasons not to use Total Bond Market?
Replies: 83
Views: 7083

Re: Reasons not to use Total Bond Market?

We often extol the virtues of very diversified equity investments but don't feel fixed income needs further diversification than Total bond fund. Speak for yourself, I do feel that fixed income needs further diversification that the total bond fund. For one thing, it has too much treasuries for my ...
by mptfan
Thu Mar 05, 2015 9:57 am
 
Forum: Investing - Help with Personal Investments
Topic: Reasons not to use Total Bond Market?
Replies: 83
Views: 7083

Re: switching from Edward Jones

Do what Dale said. You will be fine. You can get the benefit of some of the most well informed and brightest financial minds in the country by posting on this forum, and the advice that you get here will be far, far better than the advice that you will get from your EJ advisor, and it's free. What t...
by mptfan
Wed Mar 04, 2015 5:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: switching from Edward Jones
Replies: 54
Views: 4477

Re: High Yield Corporate Bonds Have Less Interest Rate Risk?

High yield corporate bonds probably have less interest rate risk to that the extent that they are less like bonds. You'll get less of what you dislike about bonds, but you'll also get less of what you like about bonds. The burden of proof is on those who say that high-yield bonds are very different...
by mptfan
Sun Mar 01, 2015 4:55 pm
 
Forum: Investing - Theory, News & General
Topic: High Yield Corporate Bonds Have Less Interest Rate Risk?
Replies: 10
Views: 571

Re: High Yield Corporate Bonds Have Less Interest Rate Risk?

Interest rate risk is dependent on the duration, not whether they are high yield or not. The first part of this sentence is correct, interest rate risk is somewhat dependent on duration, but the second part of the sentence is not. The data is clear that high yield bonds are less sensitive to intere...
by mptfan
Sun Mar 01, 2015 4:49 pm
 
Forum: Investing - Theory, News & General
Topic: High Yield Corporate Bonds Have Less Interest Rate Risk?
Replies: 10
Views: 571

Re: High Yield Corporate Bonds Have Less Interest Rate Risk?

Yes, high yield corporate bonds ARE less sensitive to interest rate changes than non-high yield corporate bonds. Specifically, the NAV of a high yield corporate bond fund will fluctuate less or go down less than investment grade corporate bond funds or treasury bonds in response to increases in inte...
by mptfan
Sun Mar 01, 2015 4:36 pm
 
Forum: Investing - Theory, News & General
Topic: High Yield Corporate Bonds Have Less Interest Rate Risk?
Replies: 10
Views: 571
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