Search found 3406 matches

by mptfan
Wed Aug 26, 2015 12:56 pm
Forum: Personal Finance (Not Investing)
Topic: Got my retirement statement from Social Security
Replies: 13
Views: 1506

Re: Got my retirement statement from Social Security

You need to index your old income to inflation. Several posters have stated that income in prior years is indexed to inflation, but this is false. Income reported in prior years is not indexed to inflation, it is indexed by reference to the National Average Wage Index, which is a different index th...
by mptfan
Sat Aug 15, 2015 2:46 pm
Forum: Personal Consumer Issues
Topic: Can a bill dispute ruin our credit?
Replies: 30
Views: 2503

Re: Can a bill dispute ruin our credit?

Did you sign a contract? If so, read it and tell us if it does have a clause (buried in the fine print I'm sure) that requires you to notify them (probably in writing a certain number of days in advance) that you intend to cancel. If so, then two things are true: 1) It is a deceptive business practi...
by mptfan
Thu Aug 13, 2015 3:15 pm
Forum: Personal Finance (Not Investing)
Topic: Is 401K Match included when someone asks you how much you make per year?
Replies: 47
Views: 3344

Re: Is 401K Match included when someone asks you how much you make per year?

sjl333 wrote:per subject title, is 401K company match included when someone asks you how much you make per year?

I think it would depend on the person asking the question...some might include it and some might not. If you are not sure, then you should ask for clarification.
by mptfan
Thu Aug 13, 2015 2:06 pm
Forum: Investing - Help with Personal Investments
Topic: Why do certain employers make you wait a year to contribute to 401k?
Replies: 34
Views: 2905

Re: Why do certain employers make you wait a year to contribute to 401k?

whitecoatinvestor38 wrote:I'm currently an employed physician and I'm negotiating a contract with a new practice. I don't see the reason for keeping me from contributing.

If you don't see the reason, then you haven't read the responses to your question.
by mptfan
Thu Aug 13, 2015 11:10 am
Forum: Investing - Help with Personal Investments
Topic: Why do certain employers make you wait a year to contribute to 401k?
Replies: 34
Views: 2905

Re: Why do certain employers make you wait a year to contribute to 401k?

They do it to confirm that you are likely to stay in the job. It is probation of a sort. Exactly. Think about it from the employer's perspective, they don't want to keep maintaining 401k accounts for years for employees who left within the first year. Also, it is a cost issue if they offer matching.
by mptfan
Thu Aug 13, 2015 10:10 am
Forum: Investing - Theory, News & General
Topic: More Individual Municipal Bond Shenanigans [Edward Jones SEC overcharge settlement]
Replies: 27
Views: 1843

Re: More Individual Municipal Bond Shenanigans

That is also another reason not to trust Edward Jones.
by mptfan
Fri Aug 07, 2015 11:28 am
Forum: Investing - Theory, News & General
Topic: Explanation on Long Bonds
Replies: 5
Views: 407

Re: Explanation on Long Bonds

I'm a novice ... If general consensus is Fed will raise rates in Sept or December , why are Long Bonds going up? It would seem prices would go down ... I hate to be such a stickler for grammar (I can't help it), but you've hit on one of my pet peeves...the word "consensus" is defined as a...
by mptfan
Fri Jul 31, 2015 8:24 pm
Forum: Investing - Theory, News & General
Topic: Anyone hold Long Term Bonds?
Replies: 45
Views: 3073

Re: Anyone hold Long Term Bonds?

rca1824 wrote:What am I missing?

The aggregate bond index is not the same as the overall bond market because it excludes categories of bonds such as high yield bonds and TIPS and municipal bonds. Tracking a particular bond index is not the same thing as tracking the overall bond market.
by mptfan
Fri Jul 31, 2015 3:34 pm
Forum: Investing - Theory, News & General
Topic: Anyone hold Long Term Bonds?
Replies: 45
Views: 3073

Re: Anyone hold Long Term Bonds?

The OP is searching for the "optimal" weight of long bonds. What does "optimal" mean? In theory, it would mean "market weight", which means that Total Bond Market* (TBM) would be sufficient. This is not accurate. Vanguard's "total bond market" fund does not h...
by mptfan
Sun Jul 26, 2015 12:46 am
Forum: Investing - Theory, News & General
Topic: "Total" Stock No More So than "Total" Bond
Replies: 52
Views: 3860

Re: "Total" Stock No More So than "Total" Bond

In fact, if you asked the average 401(k) saver, "Do you want to invest your bond allocation in investment-grade bonds or junk bonds," I think the vast majority of them--would say "I only want to invest in investment-grade bonds." If you asked the same people "Do you want to...
by mptfan
Sat Jul 25, 2015 5:56 pm
Forum: Investing - Theory, News & General
Topic: "Total" Stock No More So than "Total" Bond
Replies: 52
Views: 3860

Re: "Total" Stock No More So than "Total" Bond

If you think one set is total, and somebody else thinks another, non equal, set is total, who is right? And how can we tell? And who gets to decide? I get to decide what my opinion is, and you get to decide what your opinion is, and neither is right or wrong, they are just different. I think that t...
by mptfan
Sat Jul 25, 2015 2:45 pm
Forum: Investing - Theory, News & General
Topic: "Total" Stock No More So than "Total" Bond
Replies: 52
Views: 3860

Re: "Total" Stock No More So than "Total" Bond

Don't fixate on the fund name. Read the prospectus. Exactly. This is why I don't have much sympathy for investors who may have been slammed in state tax exempt funds that loaded up on PR bonds. Two things can be true simultaneously: A) Investors should read the prospectus. B) Vanguard should not us...
by mptfan
Sat Jul 25, 2015 10:46 am
Forum: Investing - Theory, News & General
Topic: "Total" Stock No More So than "Total" Bond
Replies: 52
Views: 3860

Re: "Total" Stock No More So than "Total" Bond

And not everyone wants to take credit risk when they're already taking equity risk as the two are correlated and equity risk may be better rewarded. Investment grade corporate bonds have credit risk, and they are included in Vanguard's "total bond" fund. I agree the credit risk is small, ...
by mptfan
Sat Jul 25, 2015 10:36 am
Forum: Investing - Theory, News & General
Topic: "Total" Stock No More So than "Total" Bond
Replies: 52
Views: 3860

Re: "Total" Stock No More So than "Total" Bond

VG "Total Stock" holds over 99% of available market cap. Arguments over whether or not that is "total" are very academic. In contrast, "Total Bond" does exclude very significant parts of the bond market. This. I think that when referring to the "total market"...
by mptfan
Mon Jul 20, 2015 2:50 pm
Forum: Investing - Theory, News & General
Topic: The Danger of higher-yielding bond funds
Replies: 62
Views: 4771

Re: The Danger of higher-yielding bond funds

well, the chart I listed above appeared to me to be a "growth" chart. That is the growth of an investment over time (I assumed dividends were reinvested. Perhaps that's not correct). I don't think that is correct. Do you want rolling returns (below)? Or am I still missing something? Can y...
by mptfan
Mon Jul 20, 2015 12:31 pm
Forum: Investing - Theory, News & General
Topic: The Danger of higher-yielding bond funds
Replies: 62
Views: 4771

Re: The Danger of higher-yielding bond funds

arcticpineapplecorp, I understand your point, but I would point out that your chart is misleading because the vast majority of the return from a bond fund comes from dividend payments, and this is even more pronounced for a high yield bond fund than an investment grade bond fund. Thus, it is very mi...
by mptfan
Mon Jul 20, 2015 11:42 am
Forum: Investing - Theory, News & General
Topic: The Danger of higher-yielding bond funds
Replies: 62
Views: 4771

Re: The Danger of higher-yielding bond funds

The volatility of stocks is well understood. People tend to 'basket' their investments, and bonds tend to sit in the 'safe' basket. You are reasoning by a false premise. Some people do 'basket' their investments by risk (putting some in the 'safe' basket and others in the 'risky' basket), but some ...
by mptfan
Mon Jul 20, 2015 10:48 am
Forum: Investing - Theory, News & General
Topic: The Danger of higher-yielding bond funds
Replies: 62
Views: 4771

Re: The Danger of higher-yielding bond funds

But would you say the market did miss-price the Oppenheimer fund in particular, or is this an example of idiosyncratic manager risk actually showing up? One should say then that outcome is not strategy. Right, this is an apparent example of one fund manager taking on too much risk by loading up on ...
by mptfan
Mon Jul 20, 2015 10:39 am
Forum: Investing - Theory, News & General
Topic: The Danger of higher-yielding bond funds
Replies: 62
Views: 4771

Re: The Danger of higher-yielding bond funds

A Boglehead knows that he/she doesn't know, isn't in the loop, and defensively decides that a Total Stock Market/Total Bond Market approach (and staying the course) is the best they can do for themselves. Unfortunately, if by the "total bond market approach" you are referring to the Vangu...
by mptfan
Mon Jul 20, 2015 10:33 am
Forum: Investing - Theory, News & General
Topic: The Danger of higher-yielding bond funds
Replies: 62
Views: 4771

Re: The Danger of higher-yielding bond funds

And just for reference, over that period 10-year Treasuries and total bond returned about 7.8%, with much lower correlation to stocks. Okay, in practice you may have needed to pay some fund fee (or maybe not; rolling Treasuries yourself isn't that much work), reducing that return a bit. The point s...
by mptfan
Mon Jul 20, 2015 10:03 am
Forum: Investing - Theory, News & General
Topic: The Danger of higher-yielding bond funds
Replies: 62
Views: 4771

Re: The Danger of higher-yielding bond funds

In the 37 years since inception of the Vanguard High Yield Corporate Bond Fund it has had a compound average growth rate of 8.63%. I would say that the investors in that fund have been well rewarded over the long haul for taking on the risk of high yield bonds, do you not agree? I think the idea is...
by mptfan
Mon Jul 20, 2015 9:51 am
Forum: Investing - Theory, News & General
Topic: The Danger of higher-yielding bond funds
Replies: 62
Views: 4771

Re: The Danger of higher-yielding bond funds

I suspect many investors in these funds and in PR municipal bonds had no idea of the underlying risks. They chased yield, and yield caught them. I suspect many stock investors had no idea of the underlying risks of the stocks that they purchased and lost money as a result. Does that mean I should a...
by mptfan
Mon Jul 20, 2015 9:36 am
Forum: Investing - Theory, News & General
Topic: The Danger of higher-yielding bond funds
Replies: 62
Views: 4771

Re: The Danger of higher-yielding bond funds

Stocks are riskier than higher yielding bond funds and therefore more dangerous, so should I avoid stocks too? The point with equities is over the long haul, investors have been well rewarded for taking on that risk. Assuming a long enough investment horizon, that is likely to be so in the future. ...
by mptfan
Mon Jul 20, 2015 9:11 am
Forum: Investing - Theory, News & General
Topic: The Danger of higher-yielding bond funds
Replies: 62
Views: 4771

Re: The Danger of higher-yielding bond funds

Stocks are riskier than higher yielding bond funds and therefore more dangerous, so should I avoid stocks too?
by mptfan
Sun Jul 19, 2015 6:17 pm
Forum: Personal Finance (Not Investing)
Topic: Why did you take SS at FRA instead of delaying until 70?
Replies: 69
Views: 7743

Re: Why did you take SS at FRA instead of delaying until 70?

Many, many people you understand how the earned income limit works. I can't tell if you do... but... I do understand that the reduction is temporary and goes away once you reach FRA. But the fact remains that the FRA date is special because your benefits may be reduced before that date if you have ...
by mptfan
Sun Jul 19, 2015 2:05 pm
Forum: Personal Finance (Not Investing)
Topic: Why did you take SS at FRA instead of delaying until 70?
Replies: 69
Views: 7743

Re: Why did you take SS at FRA instead of delaying until 70?

I recently heard a James Lange podcast where he quoted SS expert Lawrence Kotlikoff. Kotlikoff says it doesn't matter if you delay to age 70 and die before break even at about age 84....YOU'RE DEAD! It DOES matter if you spend down your portfolio more quickly by the age of 70 than you would had you...
by mptfan
Sun Jul 19, 2015 8:19 am
Forum: Personal Consumer Issues
Topic: What to do with bill received for prior homeowner
Replies: 41
Views: 3758

Re: What to do with bill received for prior homeowner

Federal law makes it illegal to open or trash correspondance addressed to someone else. Not necessarily true. See my post above which links to the federal law and quotes an appellate court judgement. Thank you for posting this Kosmo. One of my pet peeves is when people post statements about what th...
by mptfan
Sat Jul 18, 2015 1:35 pm
Forum: Personal Finance (Not Investing)
Topic: Why did you take SS at FRA instead of delaying until 70?
Replies: 69
Views: 7743

Re: Why did you take SS at FRA instead of delaying until 70?

Why any particular time? I have no idea why FRA is special in terms of how much you get when you finally do claim SS One reason why FRA is special is because once you reach FRA, your earnings no longer reduce your benefits not matter how much you earn, whereas your benefits may be reduced if you st...
by mptfan
Fri Jul 17, 2015 6:58 am
Forum: Personal Consumer Issues
Topic: What to do with bill received for prior homeowner
Replies: 41
Views: 3758

Re: What to do with bill received for prior homeowner

navyitaly wrote:Call/email the real estate agent you used if it wasn't that long ago...I am sure they can get in touch with the former owners listing agent and get you an address...

I would not be happy if my listing agent gave out my new address to anyone who asked for it.
by mptfan
Mon Jul 13, 2015 1:21 pm
Forum: Investing - Theory, News & General
Topic: The Brainwashing of the American Investor
Replies: 68
Views: 8697

Re: The Brainwashing of the American Investor

climber2020 wrote:Can't speak to the technicalities of this method, but if I had any system that consistently produced spectacular results without fail, the last thing I would do is write a book about it and divulge my secrets to the entire world.

:thumbsup
by mptfan
Mon Jul 13, 2015 1:11 pm
Forum: Personal Finance (Not Investing)
Topic: Removing PMI: get appraisal or pay down mortgage?
Replies: 17
Views: 1070

Re: Removing PMI: get appraisal or pay down mortgage?

I want to remove my PMI payment for my rental home (about $75/month) and have two choices: I can pay for a $350 appraisal (from sales in past 3-4 months I know my appraisal will come in high enough to remove PMI) or I can pay approx. $4,000 to bring the loan amount to under 80%. 80% of what? Value ...
by mptfan
Mon Jul 13, 2015 11:36 am
Forum: Personal Finance (Not Investing)
Topic: Removing PMI: get appraisal or pay down mortgage?
Replies: 17
Views: 1070

Re: Removing PMI: get appraisal or pay down mortgage?

new2bogle wrote:I want to remove my PMI payment for my rental home (about $75/month) and have two choices: I can pay for a $350 appraisal (from sales in past 3-4 months I know my appraisal will come in high enough to remove PMI) or I can pay approx. $4,000 to bring the loan amount to under 80%.

80% of what?
by mptfan
Thu Jul 09, 2015 11:01 am
Forum: Personal Finance (Not Investing)
Topic: How much to save?
Replies: 42
Views: 5322

Re: How much to save?

I don't fully understand how people think that is possible and to have any standard of living NOW! I intend to have a good retirement I do not intend to have it at the expense of enjoying life while getting there. If I save 40% of gross and the government takes 20% that only leaves 40% to live on n...
by mptfan
Thu Jul 09, 2015 10:51 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage - 30 year or 15 year?
Replies: 56
Views: 5029

Re: Mortgage - 30 year or 15 year?

In my opinion, if you are not sure whether you should get a mortgage that is longer than 15 years, then you are spending too much on the house.
by mptfan
Tue Jul 07, 2015 3:23 pm
Forum: Personal Consumer Issues
Topic: Traveling to Europe in two years (USD to Euro question)
Replies: 10
Views: 770

Re: Traveling to Europe in two years (USD to Euro question)

Your question implies that there is someone who knows what the exchange rate will be in two years, and since that cannot be true, anyone who offers an answer to your question should be ignored.
by mptfan
Tue Jul 07, 2015 12:37 pm
Forum: Personal Finance (Not Investing)
Topic: What age did you become debt free and what opportunities did it create?
Replies: 95
Views: 9325

Re: What age did you become debt free and what opportunities did it create?

vitaflo wrote:A 2.875% interest mortgage, after the tax deduction and inflation is basically a zero (or sub-zero) rate loan.

This is not necessarily true. Some people (including me) do not get a tax benefit from paying mortgage interest.

viewtopic.php?t=31456
by mptfan
Mon Jul 06, 2015 6:10 pm
Forum: Investing - Theory, News & General
Topic: If you don't care about volatility, are long-term bonds better than total bond?
Replies: 66
Views: 6006

Re: If you don't care about volatility, is long-term bonds better than total bond?

nisiprius wrote:... but it is sort of like saying "if you don't care about dying instantly, is there anything wrong with launching fireworks from your head?"

LMAO. Thanks for the good belly laugh! :D
by mptfan
Mon Jul 06, 2015 3:26 pm
Forum: Investing - Theory, News & General
Topic: If you don't care about volatility, are long-term bonds better than total bond?
Replies: 66
Views: 6006

Re: If you don't care about volatility, is long-term bonds better than total bond?

AndroAsc wrote: In the context of this situation, does it make sense to allocate more towards LT bonds especially in one's early years?

Yes.
by mptfan
Thu Jul 02, 2015 10:44 am
Forum: Investing - Help with Personal Investments
Topic: Help! Elderly father got snookered.
Replies: 36
Views: 6388

Re: Help! Elderly father got snookered.

sport wrote:If Dad accompanies him, that is not a problem.

Is Dad incompetent? Is there a reason why Dad needs his son to go to the bank with him and speak for him? Is there a reason why the bank should ignore Dad and speak directly to the son?
by mptfan
Thu Jul 02, 2015 8:55 am
Forum: Investing - Help with Personal Investments
Topic: Help! Elderly father got snookered.
Replies: 36
Views: 6388

Re: Help! Elderly father got snookered.

If, and only if, your dad is in agreement, and if you really feel the investment was unsuitable, you could try going to the bank where the investment was made. You could tell them that they sold him an unsuitable investment and if they do not undo the transaction, you will report them to all the re...
by mptfan
Thu Jul 02, 2015 8:52 am
Forum: Investing - Help with Personal Investments
Topic: Help! Elderly father got snookered.
Replies: 36
Views: 6388

Re: Help! Elderly father got snookered.

muddlehead wrote:Tis a fact: The absolute without a doubt worst place to go for advice on how to invest your money is usually the first place anyone would think of - his/her bank.

I don't know about that, I can think of worse places...your insurance company...Edward Jones...your stock broker.
by mptfan
Thu Jul 02, 2015 8:51 am
Forum: Investing - Help with Personal Investments
Topic: Help! Elderly father got snookered.
Replies: 36
Views: 6388

Re: Help! Elderly father got snookered.

Did your dad ask for your advice? If the answer is no, then stop and do not do anything. If the answer is yes, proceed.
by mptfan
Wed Jul 01, 2015 3:22 pm
Forum: Personal Finance (Not Investing)
Topic: Obsessing towards zero balance on credit card.
Replies: 135
Views: 10983

Re: Obsessing towards zero balance on credit card.

Wow. I just checked...in the last 6 months I averaged 43 credit card purchases per month.
by mptfan
Wed Jul 01, 2015 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: Obsessing towards zero balance on credit card.
Replies: 135
Views: 10983

Re: Obsessing towards zero balance on credit card.

After every credit card purchase, I wait two or three days and then go online and transfer that amount from my checking account. So there's a balance on it for a couple of days. I never get a bill in the mail because the balance is always zero by the time the end of the billing cycle rolls around, ...
by mptfan
Fri Jun 26, 2015 3:29 pm
Forum: Investing - Theory, News & General
Topic: Marriage, Compatibility, and Investment Assumptions – Am I being reactionary?
Replies: 23
Views: 2027

Re: Marriage, Compatibility, and Investment Assumptions – Am I being reactionary?

alex_686 wrote:As for being risk adverse....

It's risk "averse," not "adverse." (Sorry, can't help it) ;)
by mptfan
Fri Jun 26, 2015 12:29 pm
Forum: Investing - Theory, News & General
Topic: Marriage, Compatibility, and Investment Assumptions – Am I being reactionary?
Replies: 23
Views: 2027

Re: Marriage, Compatibility, and Investment Assumptions – Am I being reactionary?

wilked wrote:There is risk-adverse, and then there is this...

It is risk "averse" not adverse. (Sorry, can't help it) ;)
by mptfan
Fri Jun 26, 2015 12:28 pm
Forum: Investing - Theory, News & General
Topic: Marriage, Compatibility, and Investment Assumptions – Am I being reactionary?
Replies: 23
Views: 2027

Re: Marriage, Compatibility, and Investment Assumptions – Am I being reactionary?

alex_686 wrote:As for me being knowledgeable enough to dispute the conventional wisdom or, as they say, knowledge enough to be dangerous. I am looking for your external opinion to help me calibrate my investment assumptions. Are these assumptions conservative, very conservative, or reactionary?

Reactionary.
by mptfan
Thu Jun 25, 2015 1:21 pm
Forum: Investing - Theory, News & General
Topic: When saving money becomes an irrational obsession
Replies: 146
Views: 24778

Re: When saving money becomes an irrational obsession

Talking about when saving money becomes an irrational obsession, I had an uncle who was extremely frugal. One time when he was on vacation, he saw an ad for an extremely low room rate. When he got to the hotel, he was told that the low rate only applied to people who called in and made a reservatio...
by mptfan
Thu Jun 25, 2015 10:04 am
Forum: Personal Finance (Not Investing)
Topic: Couples and money and compatibility
Replies: 38
Views: 4447

Re: Couples and money and compatibility

My DW has little interest in money or investing. She pretty much goes along with my style. The only issue is she does not look at prices or bargain shop like I do. If something is too expensive, I'll go without. Since she doesn't look at prices, she'll buy it. Very minor irritant to me. Otherwise, ...
by mptfan
Thu Jun 25, 2015 9:59 am
Forum: Personal Finance (Not Investing)
Topic: Couples and money and compatibility
Replies: 38
Views: 4447

Re: Couples and money and compatibility

sschullo wrote:mptfan,
Why not create survey? Or has it been done already?

Because the poll feature has been disabled.

viewtopic.php?t=164952

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