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Re: Annuities and asset allocation

If you buy annuities which provide substantial parts of your income stream, then you may very well want to increase the proportion of riskier assets in your portfolio. After all, why isn't your asset allocation 100% stocks? As an asset class, stocks have the highest long term expected return. Add mo...
by ourbrooks
Mon Jul 28, 2014 5:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: Annuities and asset allocation
Replies: 23
Views: 710

Re: Selling House - Do We Need a Listing Broker?

OP here. I'm a little skeptical that MLS has that much advantage over Zillow. The selling agent on the house we are buying made a pitch to list our house. She stated that she had buyers looking in our subdivision, and she checked Zillow everyday to see if anything came on the market. We were doing ...
by ourbrooks
Sun Jul 27, 2014 10:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: Selling House - Do We Need a Listing Broker?
Replies: 59
Views: 2240

Re: Selling House - Do We Need a Listing Broker?

If you don't have a selling broker, there's no way your house will get listed on the Multiple Listing Service (MLS). It won't show up on realtor.com; it might not show up on Redfin. Why do you want your listing there? Well, a lot of buyers still rely on buyer's agents to find likely houses. This is ...
by ourbrooks
Sun Jul 27, 2014 8:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: Selling House - Do We Need a Listing Broker?
Replies: 59
Views: 2240

Re: Vanguard quietly adds longevity annuities

Why couldn't the insurance companies simply buy TIPS that mature in the initial year of the deferred payout?? They are in the unique position to do this and it would allow them to offer an inflation indexed initial payout deferred annuity. They would not expose themselves to inflation risk and woul...
by ourbrooks
Sat Jul 26, 2014 5:01 pm
 
Forum: Investing - Theory, News & General
Topic: Vanguard quietly adds longevity annuities
Replies: 76
Views: 4996

Re: Vanguard quietly adds longevity annuities

I wouldn't hold out much hope of inflation indexed annuities that index the initial payout. As nisiprius pointed out, 20 years is a loooong time from the point of view of inflation. How much would you want me to pay you today for an inflation indexed $1000 in 20 years? How good are insurance compani...
by ourbrooks
Sat Jul 26, 2014 4:15 pm
 
Forum: Investing - Theory, News & General
Topic: Vanguard quietly adds longevity annuities
Replies: 76
Views: 4996

Re: Android smartphone with physical keyboard

Amazon has generic, capacitive styli starting at $1.38. Seems a cheap experiment. Edit: 5 for $1.29 At that price, I'd pay the $49 for two hour drone delivery, just to settle the question. The FAA hasn't approved the drone delivery yet. I believe Amazon expects the new rules by 2015. I wouldn't pay...
by ourbrooks
Thu Jul 24, 2014 5:14 pm
 
Forum: Personal Consumer Issues
Topic: Android smartphone with physical keyboard
Replies: 38
Views: 1734

Re: Please help settle an argument

Historically, over rolling five year periods, the S&P 500 has had a loss 40% of the time. No one can predict in advance in which five year periods the S&P 500 will rise. Is this year a good year to take out a five year loan? What do you think the odds are that five years from now the S&P...
by ourbrooks
Wed Jul 23, 2014 2:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: Please help settle an argument
Replies: 23
Views: 1942

Re: Android smartphone with physical keyboard

Amazon has generic, capacitive styli starting at $1.38. Seems a cheap experiment.

Edit: 5 for $1.29 At that price, I'd pay the $49 for two hour drone delivery, just to settle the question.
by ourbrooks
Wed Jul 23, 2014 2:02 pm
 
Forum: Personal Consumer Issues
Topic: Android smartphone with physical keyboard
Replies: 38
Views: 1734

Re: Android smartphone with physical keyboard

The Samsung Galaxy Note 3 supports a stylus and has a 5.7 inch screen You might be able to type using the stylus instead of your fingers. There are a lot of external keyboards in the $10-$20 range. Almost all of them are larger than a phone, say, 11 inches long. If you really do a lot of typing, the...
by ourbrooks
Tue Jul 22, 2014 1:22 pm
 
Forum: Personal Consumer Issues
Topic: Android smartphone with physical keyboard
Replies: 38
Views: 1734

Re: Take the plunge on long term treasuries vs. market timin

Currently, there's lots being written about how the market is over valued and how a major crash, or, at least, a correction is coming soon. A lot of people are pretty convinced this is going to happen. What if they're right? Then, right now is an extremely good time to buy long term Treasuries for t...
by ourbrooks
Mon Jul 21, 2014 2:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: Take the plunge on long term treasuries vs. market timing?
Replies: 5
Views: 536

Re: oil companies more risky

There must be something wrong with your analysis. Everyone knows that oil imports in China fell in May and are flat the last five months. If people thought that it was likely that the price of oil were vulnerable to a sharp drop, oil futures would have dropped. If anything they've risen. If people t...
by ourbrooks
Sun Jul 20, 2014 4:59 pm
 
Forum: Investing - Theory, News & General
Topic: oil companies more risky
Replies: 8
Views: 1005

Re: NPR: Net Price Of Private Non-Profit College

even the average score an Aggie is 1220 and A&M has an honors program that is even more selective. Because A&M must accept top 10% students, the average SAT score of admitted students isn't as high as it would be without the 10% mandate. I'd say that even with the 10% rule, A&M students...
by ourbrooks
Sat Jul 19, 2014 8:23 pm
 
Forum: Personal Finance (Not Investing)
Topic: NPR: Net Price Of Private Non-Profit College
Replies: 36
Views: 3222

Re: NPR: Net Price Of Private Non-Profit College

While I do think public colleges are a good way to go financially, the one that we toured has a program for higher SAT score students. The score.....1200. My son and I looked at each other like they just said dragons are admitted. His score was 1650 and he was about average for his high school. I'm...
by ourbrooks
Sat Jul 19, 2014 7:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: NPR: Net Price Of Private Non-Profit College
Replies: 36
Views: 3222

Re: NPR: Net Price Of Private Non-Profit College

I have to disagree to the statement that a child's educational path can be determined by 1st or 2nd grade. My youngest self-taught how to multiply by age 3 and was in a gifted program in elementary school. Now a lazy freshman who barely passes classes but pulls out As and Bs on finals. It was not l...
by ourbrooks
Sat Jul 19, 2014 4:49 pm
 
Forum: Personal Finance (Not Investing)
Topic: NPR: Net Price Of Private Non-Profit College
Replies: 36
Views: 3222

Re: retirement fund or college fund?

If your child is academically gifted enough to get into Yale, for example, where you put the money now may not matter: Every family’s financial situation is different. Some families are not able to contribute financially towards their student’s college education at all. Others can afford the full co...
by ourbrooks
Thu Jul 17, 2014 10:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: retirement fund or college fund?
Replies: 15
Views: 856

Re: SAT preparation

I presume that we're talking about here is the SAT general ability tests, not the subject area tests. Yes, the Kaplan and Princeton programs do increase SAT scores, by 21 to 34 points total ( http://research.collegeboard.org/sites/default/files/publications/2012/7/researchreport-1998-6-effects-coach...
by ourbrooks
Sat Jul 12, 2014 6:59 pm
 
Forum: Personal Consumer Issues
Topic: SAT preparation
Replies: 30
Views: 2307

Re: NPR: Net Price Of Private Non-Profit College

As the podcast makes clear, there's more to the story of private college costs than sticker versus net price; the distribution of who pays has also changed. More scholarship dollars are now going to attract the top students and less is going to the average student. This is a widespread national tren...
by ourbrooks
Sat Jul 12, 2014 5:49 pm
 
Forum: Personal Finance (Not Investing)
Topic: NPR: Net Price Of Private Non-Profit College
Replies: 36
Views: 3222

Re: Longevity Annuities

Lots of press recently on Longevity Annuities....drawing on payments starting around 80? Seems like a crap shoot of a gamble with odds going to the insurance companies...what do the bogleheads think? It's less of a crap shoot if you wait until 80 to buy one. By then you can estimate your remaining ...
by ourbrooks
Wed Jul 09, 2014 9:54 pm
 
Forum: Investing - Theory, News & General
Topic: Longevity Annuities
Replies: 18
Views: 2558

Re: Asset Allocation At or Near Retirement?

If you look at the studies in the Wiki, anywhere from 30% stocks to 70% stocks is about equally likely to sustain a 4% withdrawal rate for 30 years. There's some evidence that higher equity percentages are more likely to be effective for very long retirements (more than 30 years) or if you wan to le...
by ourbrooks
Wed Jul 09, 2014 2:09 pm
 
Forum: Investing - Theory, News & General
Topic: Asset Allocation At or Near Retirement?
Replies: 51
Views: 4523

Re: Is Market on "Wrong Side of History"?

The market would probably be 1,000 or 2,000 points lower right now if not for extreme Fed policies. So, a plunge followed by a long flat if not down market is sure to happen when the Fed is forced to reverse course by some event such as an unexpected spike in inflation. The boglehead approach is to...
by ourbrooks
Wed Jul 09, 2014 1:58 pm
 
Forum: Investing - Theory, News & General
Topic: Is Market on "Wrong Side of History"?
Replies: 22
Views: 2696

Re: Is Market on "Wrong Side of History"?

Assuming for the moment that the author's analysis is correct, there are too many "what ifs" to take sensible action: 1. What if U.S. economic growth and corporate profits slowly increase? Will the stock market move even higher or will it stay level until valuations catch up? 2. What if al...
by ourbrooks
Wed Jul 09, 2014 1:07 pm
 
Forum: Investing - Theory, News & General
Topic: Is Market on "Wrong Side of History"?
Replies: 22
Views: 2696

Re: Retirement age for software engineers

The reason there's a lot of controversy is that it doesn't match ANYBODY'S experience ANYWHERE. It would be one thing if some people said "yeah, that sounds about right" but others say "no, that doesn't sound right." But there is literally nobody anywhere standing up for these m...
by ourbrooks
Sun Jul 06, 2014 10:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: Retirement age for software engineers
Replies: 94
Views: 9446

Re: Retirement age for software engineers

Unfortunately, the company you work for makes a big difference here. If you are using something like C++ or Java to write desktop apps, you'll probably never have occasion to learn the new web-based technologies, and that's a problem, because the web is the future. The only real solution is to get ...
by ourbrooks
Sun Jul 06, 2014 4:32 pm
 
Forum: Personal Finance (Not Investing)
Topic: Retirement age for software engineers
Replies: 94
Views: 9446

Re: Retirement age for software engineers

Unfortunately, the company you work for makes a big difference here. If you are using something like C++ or Java to write desktop apps, you'll probably never have occasion to learn the new web-based technologies, and that's a problem, because the web is the future. The only real solution is to get ...
by ourbrooks
Sat Jul 05, 2014 7:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: Retirement age for software engineers
Replies: 94
Views: 9446

Re: Who will be the Vanguard of the annuity world?

The problem with any inflation indexed product is that whoever sells it must be able to increase how much they are paying out over time by an amount which depends on the rate of inflation. This is not like other insurable events, like life insurance, in which the payable event occurs after people ha...
by ourbrooks
Fri Jul 04, 2014 2:50 pm
 
Forum: Investing - Theory, News & General
Topic: Who will be the Vanguard of the annuity world?
Replies: 27
Views: 3644

Re: Market Timing with the PE10

Here's another approach to market timing with PE10: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1876225 The problem with this approach is it may leave you entirely in bonds for decades at a time, hoping that there'll be a big enough stock market crash to make it worthwhile to switch to stocks.
by ourbrooks
Thu Jul 03, 2014 9:51 pm
 
Forum: Investing - Theory, News & General
Topic: Market Timing with the PE10
Replies: 18
Views: 2257

Re: I'm worthless [Net worth is zero]

Is the sum of your mortgage + HELOC equal to the value of your home? If not, then your net worth includes the remaining equity in your home. Also, you need to consider the value of your cars. If you can get loans on them, chances are that the value of the cars exceeds the value of your car loans. Ge...
by ourbrooks
Thu Jul 03, 2014 11:11 am
 
Forum: Personal Finance (Not Investing)
Topic: I'm worthless [Net worth is zero]
Replies: 33
Views: 5033

Re: Building a home

If by "building a home," you mean a custom home, it's a huge amount of work and very, very difficult to keep the price under control. First, you will pay an architect to come up with a plan. He/she will be guided by your budget but won't be able to give an exact figure. You'll also need a ...
by ourbrooks
Tue Jul 01, 2014 5:59 pm
 
Forum: Personal Consumer Issues
Topic: Building a home
Replies: 17
Views: 1491

Re: N+ Routers

Again, keep in mind that the more devices you have, the less the range of your router is likely to be. That's because the devices interfere with each other and the weaker signal from the router when you're far from it gets lost in the noise. You can be heard quit a distance shouting when you're the ...
by ourbrooks
Sun Jun 29, 2014 8:32 pm
 
Forum: Personal Consumer Issues
Topic: N+ Routers
Replies: 27
Views: 1697

Re: Best use of inheritance for retirement saving?

For item 3, see if your employer offers the TIAA Traditional Annuity. This is a unique investment that you can't get at Vanguard or Fidelity or, even, DFA. It's like a stable value fund, but the underlying investments are diversified, including directly held real estate. It's been around longer than...
by ourbrooks
Sun Jun 29, 2014 5:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: Best use of inheritance for retirement saving?
Replies: 18
Views: 2336

Re: N+ Routers

If at all possible, connect things with cables and don't use wireless. There are only two frequency bands for WiFi, 2.4 Ghz and 5 Ghz. Within those bands, there are only 3 distinct frequencies at 2.4 Ghz; there are 23 non-overlapping frequencies at 5 Ghz but some of those are shared with weather and...
by ourbrooks
Sat Jun 28, 2014 9:41 pm
 
Forum: Personal Consumer Issues
Topic: N+ Routers
Replies: 27
Views: 1697

Re: Energy companies vs Crude-ETF for commodity exposure?

The best way to get commodity exposure for oil/gas would be to own a working interest in a well or a share of a Master Limited Partnership which drills wells, collects royalties on well production, or operates pipelines. The former is the most fun; you can take your friends to visit "your"...
by ourbrooks
Fri Jun 27, 2014 12:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: Energy companies vs Crude-ETF for commodity exposure?
Replies: 21
Views: 1182

Re: Retirement age for software engineers

Actually, the people who haven't learned anything new in 20 years are probably the ones most sought after!! http://www.businessweek.com/articles/2014-06-25/the-talent-that-keeps-your-50-year-old-software-running-is-retiring-dot-now-what#r=rss We've gotten to the point in which development of new sof...
by ourbrooks
Thu Jun 26, 2014 8:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: Retirement age for software engineers
Replies: 94
Views: 9446

Re: Why is lump sum payout for pension so low?

It is just as likely that the lump sum is right and that the pension is too high. :D This could also be a actuarially fair set of numbers if the history of the people in your plan is a lot different than the group of people that buy annuities in general. For example if you have a great inflation ad...
by ourbrooks
Wed Jun 25, 2014 5:58 pm
 
Forum: Personal Finance (Not Investing)
Topic: Why is lump sum payout for pension so low?
Replies: 20
Views: 1774

Re: Should Risk Portfolio in LMP, be 100% equity

The Merton article doesn't say anything which answers the OP's question. The OP already has income sources to cover essential needs. The "problem" is that he's got money left over which he doesn't need to generate income. The OP has not made clear his goals for this money, but if the goal ...
by ourbrooks
Wed Jun 25, 2014 10:55 am
 
Forum: Investing - Help with Personal Investments
Topic: Should Risk Portfolio in LMP, be 100% equity
Replies: 20
Views: 1233

Re: Long-Term Care Insurance? Is it a good idea?

Keep in mind that LTC is like car insurance; it doesn't accumulate any value and if you stop paying, you lose coverage. It is true that if you start coverage when you are young, your rates will be lower when you are older; the reason why insurance companies do that is because the odds of claiming fo...
by ourbrooks
Tue Jun 24, 2014 2:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: Long-Term Care Insurance? Is it a good idea?
Replies: 24
Views: 1838

Re: Leasing mineral rights for oil exploration

Yes, get a lawyer and have her/him review the original seismic survey agreement. It may contain language on options for leasing, etc. Once the word has gone out that MajorOil is paying for a seismic survey in such and such an area, what's to prevent any one else from going around, buying up leases, ...
by ourbrooks
Sun Jun 22, 2014 4:45 pm
 
Forum: Personal Finance (Not Investing)
Topic: Leasing mineral rights for oil exploration
Replies: 14
Views: 1009

Re: Should Risk Portfolio in LMP, be 100% equity

The whole point about a risk portfolio is that it's money you don't really need. It might give you great pleasure to know it's there, but it wouldn't really make a difference if it wasn't. For example, assuming that you have enough set aside for contingencies, there's no rule against spending all of...
by ourbrooks
Sat Jun 21, 2014 10:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should Risk Portfolio in LMP, be 100% equity
Replies: 20
Views: 1233

Re: Leasing mineral rights for oil exploration

A question to ask is, who owns the results of the seismic survey. Unless you specifically negotiated to get the results, they belong exclusively to whomever paid for the survey. This could be an oil company, in which case they own the results, or the seismic survey company owns the results and can s...
by ourbrooks
Sat Jun 21, 2014 2:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: Leasing mineral rights for oil exploration
Replies: 14
Views: 1009

Re: Equity% if 3% withdrawal for 40 years?

You might want to look at the newer research by Wade Pfau and Michael Kitces. They conclude that increasing the equity allocation during retirement is beneficial. That makes the instructions for your wife very simple: Spend the bonds first until they're gone; then sell the stocks. If you start out a...
by ourbrooks
Fri Jun 20, 2014 12:49 pm
 
Forum: Investing - Theory, News & General
Topic: Equity% if 3% withdrawal for 40 years?
Replies: 12
Views: 1390

Re: Too Much in 529's?

I did not realize that the principal could be withdrawn from 529's without penalty. Very, very important information. Thanks so much! Yes, I do mean an IRA would not be deductible for us. We've looked into back door roth and decided against it at this point - we've got a fair amount of money alread...
by ourbrooks
Fri Jun 20, 2014 11:41 am
 
Forum: Investing - Help with Personal Investments
Topic: Too Much in 529's?
Replies: 25
Views: 1642

Re: Need to Invest $250000 for 87 Year Old Dad

Life annuities pay during the beneficiary's lifetime and don't leave anything left when they're dead. They're best suited for someone who wants income while they're alive but who don't care whether their heirs get anything. Does your father care about leaving an estate? If he does, then he should on...
by ourbrooks
Wed Jun 18, 2014 1:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need to Invest $250000 for 87 Year Old Dad
Replies: 10
Views: 1317

Re: Should we or shouldn't we make a move at this age?

What, exactly, is undesirable about your current house? Is it something that a $50,000 remodel could fix? Are you making any assumptions about how much the new property will appreciate? A lot of people made those assumptions prior to 2008 and used them to justify purchasing larger homes because they...
by ourbrooks
Mon Jun 16, 2014 3:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: Should we or shouldn't we make a move at this age?
Replies: 37
Views: 2883

Re: How compelling is the TIAA Real Estate fund?

If she can get the TIAA Real Estate fund, can she get the TIAA Traditional Annuity as well? If so, it might be worth looking into as a much better replacement for a bond fund. Part of the reason why TREA does better than a Vanguard REIT may be the limitations on investments and withdrawals. They don...
by ourbrooks
Mon Jun 16, 2014 3:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: How compelling is the TIAA Real Estate fund?
Replies: 85
Views: 4499

Re: Selling mineral rights to land?

They may be able to drain the oil/gas underneath your land even without your permission. Geology doesn't respect property lines so it may well be the case that pumping oil/gas from a neighbor's land could draw it out from under your land. In some states, there's a bit of legal machinery called "...
by ourbrooks
Thu Jun 12, 2014 4:35 pm
 
Forum: Personal Finance (Not Investing)
Topic: Selling mineral rights to land?
Replies: 21
Views: 1410

Re: Blue Line Jumps 11 Percent

What if it passed four perpendicular red lines? http://www.youtube.com/watch?v=BKorP55Aqvg
by ourbrooks
Thu Jun 12, 2014 4:19 pm
 
Forum: Investing - Theory, News & General
Topic: Blue Line Jumps 11 Percent
Replies: 5
Views: 738

Re: Is a 2% withdrawal rate bulletproof ?

Bustoff: another angle to your question is that the all-bond portfolio is not the least risky; adding 25% or so equities makes it less risky, not more. I believe you'll find that the margin of safety is substantially higher with that portfolio. So you can look at "bulletproof" as saying t...
by ourbrooks
Thu Jun 12, 2014 3:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: Is a 2% withdrawal rate bulletproof ?
Replies: 48
Views: 3956

Re: Apple looks interesting right now

I recently bought a $125 smart phone that has nearly all of the capabilities of an iPhone 4S. Obviously, there's a vastly larger market for $125 smart phones than for $500 ones. I'm sure that the smart people at Apple know this and that they knew about the cheap smart phone several years ago. It's n...
by ourbrooks
Tue Jun 10, 2014 11:39 am
 
Forum: Investing - Theory, News & General
Topic: Apple looks interesting right now
Replies: 35
Views: 2398

Re: Using investments as collateral for low-interest mortgag

Borrowing against your own assets to buy real estate doesn't sound a whole lot different than borrowing against your own assets to buy more stocks, a.k.a buying on margin. Based on that similarity, I strongly suspect that all of these deals have a "make good" clause in which if the value o...
by ourbrooks
Mon Jun 09, 2014 2:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: Using investments as collateral for low-interest mortgage?
Replies: 5
Views: 349

Re: why isn't thisbetter than indexing.

I read the article before I looked at the author and I said to myself, gee, this sounds like Brentt Arends. Well, apparently, I'm good at predicting at least one thing. He and others are in favor of so called equal weighted indices, in which equally dollar amounts are bought of the shares of a list ...
by ourbrooks
Sat Jun 07, 2014 6:09 pm
 
Forum: Investing - Theory, News & General
Topic: WSJ - A Random Way To Get Rich
Replies: 22
Views: 2932
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