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Re: A.C or No A.C?

I meant the 'brand' of hardwood floors is Armstrong. Here is a close approximation of what we have.

http://www.armstrong.com/flooring/hardw ... -89869.asp
by pop77
Sat Jul 26, 2014 10:25 am
 
Forum: Personal Finance (Not Investing)
Topic: A.C or No A.C?
Replies: 12
Views: 834

Re: A.C or No A.C?

I have lived all the many decades of my life in homes with standard hardwood oak floors. I have run or not run the ac and opened and closed windows as I pleased, never once thinking about the impact on the floors. I'm happy to say that they all seemed to survive my ignorance. (The radiator leak was...
by pop77
Sat Jul 26, 2014 9:25 am
 
Forum: Personal Finance (Not Investing)
Topic: A.C or No A.C?
Replies: 12
Views: 834

Re: A.C or No A.C?

Yes. I do this. We have humidity monitors inside the house. The question is whether to use A.C to control it (easy way) or run A.C on high humid days and switch off A.C and open windows on low humid days.
by pop77
Sat Jul 26, 2014 8:53 am
 
Forum: Personal Finance (Not Investing)
Topic: A.C or No A.C?
Replies: 12
Views: 834

A.C or No A.C?

Living in a house with hardwood floors presents new challenges on whether to run A.C or not. Typically in summers I set the temperature relatively higher at 78 and use ceiling fans for extra cooling. I turn on A.C in May and not worry about it till September. I do not try to turn it off and on perio...
by pop77
Sat Jul 26, 2014 7:53 am
 
Forum: Personal Finance (Not Investing)
Topic: A.C or No A.C?
Replies: 12
Views: 834

Re: i bonds or EE bonds?

The issue I have it with EE Bond is neither that the interest rate is 3.53% , nor it has a 20 year holding period. It is that you get 3.53% ONLY if you hold it for 20 years. Yes it is better than nothing or negative return during deflationary periods, but can't you use regular Treasury Bonds for def...
by pop77
Fri Jul 25, 2014 6:58 pm
 
Forum: Investing - Theory, News & General
Topic: i bonds or EE bonds?
Replies: 46
Views: 5770

Re: i bonds or EE bonds?

What a great discussion! Nisi double thumbs up to your post. EE bonds only makes sense if you are willing to wait the entire 20 years and be satisfied with a return of NO MORE THAN 3.53%. If I know I have to wait 20 years and am NOT going to take money out, I would rather put that cash in Equity. If...
by pop77
Fri Jul 25, 2014 9:18 am
 
Forum: Investing - Theory, News & General
Topic: i bonds or EE bonds?
Replies: 46
Views: 5770

Re: Cash allocation in a portfolio

... Bond funds not only provide yield when stocks do well but also provide capital appreciation when stocks go down . ... They do not do that, at least not reliably. The correlation between stocks and bonds is close to zero. That means they could both go up at the same time, both go down at the sam...
by pop77
Wed Jul 16, 2014 2:25 pm
 
Forum: Investing - Theory, News & General
Topic: Cash allocation in a portfolio
Replies: 42
Views: 3666

Re: Cash allocation in a portfolio

I answered 0%. But I don't sell bonds re-balance. If I have to re-balance, I'll use new contribution. But even in 2008-9 crash, I used the same ratio for contribution. My initial fund started with a fixed 80/20 ratio and my contribution also has 80/20 ratio. Now the portfolio weights are close to 9...
by pop77
Mon Jul 14, 2014 8:31 am
 
Forum: Investing - Theory, News & General
Topic: Cash allocation in a portfolio
Replies: 42
Views: 3666

Re: In a crash, will you re-balance to maintain your target

I think there is levels of emotional maturity in investing 1. Not buying more stocks in an euphoria after stocks have gone up 2. Not selling stocks in a panic after market has crashed 3. Selling stocks in an euphoria after they have gone up (when everyone else is buying) 4.Buying stocks in a crash a...
by pop77
Mon Jul 14, 2014 8:21 am
 
Forum: Investing - Theory, News & General
Topic: In a crash, will you re-balance to maintain your target AA?
Replies: 64
Views: 4137

Re: Rebalancing Band for an asset class based on volatility

Thanks for attaching the study. The premise for my question in fact is the opposite. When a volatile asset class is either being beaten down or goes up I do not want to rush into rebalancing immediately. I do not even want to rebalance when the asset class hits the bands. The reason is the volatile ...
by pop77
Sun Jul 13, 2014 4:39 pm
 
Forum: Investing - Theory, News & General
Topic: Rebalancing Band for an asset class based on volatility
Replies: 12
Views: 1198

Rebalancing Band for an asset class based on volatility

There have been various discussions on rebalancing here. There have been extensive discussions on time based Vs band based rebalancing. However would it be feasible to have a rebalancing band that is different per asset class that is based on its volatility? Should Emerging Market Stocks and Large C...
by pop77
Sun Jul 13, 2014 9:11 am
 
Forum: Investing - Theory, News & General
Topic: Rebalancing Band for an asset class based on volatility
Replies: 12
Views: 1198

Re: Cash allocation in a portfolio

Why does the poll stop at a 5% cash allocation? Am I the only one who believes that cash is a worthy asset class in its own right? I don't think it is, but there is nothing wrong with deciding otherwise, and in that case the allocation could be more than 5%. The "dry powder" metaphor is e...
by pop77
Tue Jul 08, 2014 10:50 am
 
Forum: Investing - Theory, News & General
Topic: Cash allocation in a portfolio
Replies: 42
Views: 3666

Re: Cash allocation in a portfolio

I don't have a cash allocation distinct from a bond allocation. I think dry powder is a misleading metaphor that does not apply to investing. I have actual cash at about 1% of portfolio right now, but rebalancing into stocks would happen by selling bonds and buying stocks. Why do you have 1% of you...
by pop77
Mon Jul 07, 2014 7:15 pm
 
Forum: Investing - Theory, News & General
Topic: Cash allocation in a portfolio
Replies: 42
Views: 3666

Re: Cash allocation in a portfolio

Hi pop77, As sometimes happens, I can't choose any of the selections because they include two elements, in this case: how much cash; plus why. The whys prevent me from agreeing to any of the options. As it happens my portfolio has zero percent cash, but not for any of the reasons you list. There ar...
by pop77
Mon Jul 07, 2014 7:14 pm
 
Forum: Investing - Theory, News & General
Topic: Cash allocation in a portfolio
Replies: 42
Views: 3666

Re: Cash allocation in a portfolio

I don't see how this would be sustainable unless you subsequently sold on upturns a.k.a market timing. If you hold 3% of your portfolio in cash, the market drops to whatever you're looking for, and then you buy equities with all of that cash - you no longer have cash in your investment portfolio. T...
by pop77
Mon Jul 07, 2014 1:26 pm
 
Forum: Investing - Theory, News & General
Topic: Cash allocation in a portfolio
Replies: 42
Views: 3666

Cash allocation in a portfolio

Do you have an allocation to cash (ST Bond Funds/CD's/Money Market Funds) as part of your portfolio? This is in addition to Emergency Funds which is not part of investment portfolio. The primary purpose of such allocation is to buy other asset classes Stocks, Bonds, Real Estate on downturns and corr...
by pop77
Mon Jul 07, 2014 12:46 pm
 
Forum: Investing - Theory, News & General
Topic: Cash allocation in a portfolio
Replies: 42
Views: 3666

Re: Expected Return: Mortgage Vs VBTIX Vs Cash

Got it. Slept on these thoughts yesterday and I think I will just stick to my current plan now. Soon I will start reducing my cash position and have it in VBTIX.

Thanks for your replies. Overthinking is often bad. :sharebeer
by pop77
Sun Jul 06, 2014 3:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: Expected Return: Mortgage Vs VBTIX Vs Cash
Replies: 5
Views: 538

Re: Expected Return: Mortgage Vs VBTIX Vs Cash

Suppose interest rates go up within 5 years, so that VBTIX yields 5% and one can buy a 1-year CD paying 5% as well just like back in 2007-2008. If you pay off the mortgage, you lose that possibility. Is such a possibility worth anything to you? Is that option worth anything to you? It would be wort...
by pop77
Sat Jul 05, 2014 8:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: Expected Return: Mortgage Vs VBTIX Vs Cash
Replies: 5
Views: 538

Expected Return: Mortgage Vs VBTIX Vs Cash

First I want to mention I really do not want to discuss the 'secure' and 'good' feeling of paying off mortgage. I want to compare without any emotions the following three options. 1. Investing in VBTIX in Traditional 401(k). SEC yield at 2.12% - Tax bracket Fed+State: 30% 2. Making extra payments on...
by pop77
Sat Jul 05, 2014 7:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: Expected Return: Mortgage Vs VBTIX Vs Cash
Replies: 5
Views: 538

Re: Rick Ferri's Emergency Fund

Recently did some research and stumbled upon GSY. Does seem to hold up well for a 3 month holding period. (No negative return if holding period is 3 months) Thoughts?
by pop77
Sat Jul 05, 2014 9:36 am
 
Forum: Investing - Theory, News & General
Topic: Rick Ferri's Emergency Fund
Replies: 28
Views: 6298

Re: How are you doing through the first half of 2014?

livesoft wrote:I think in Quicken if you change the data-range to be 1-1-2014 to 12-31-2014, then the report will be "unannualized".


Great Thanks. Worked like a charm. 6.2% 'Un-Annualized' using XIRR in Quicken.
by pop77
Wed Jul 02, 2014 6:56 pm
 
Forum: Investing - Theory, News & General
Topic: How are you doing through the first half of 2014?
Replies: 91
Views: 9320

Re: How are you doing through the first half of 2014?

Is there a mathematical way to 'un-annualize' XIRR? I use Quicken and their performance reports show only XIRR.
by pop77
Wed Jul 02, 2014 6:36 pm
 
Forum: Investing - Theory, News & General
Topic: How are you doing through the first half of 2014?
Replies: 91
Views: 9320

Re: "Average investors don't settle for average?"

The only generalizations that can be made about active investors is that they don't settle for "average", which is what passive investors do. Not really. Passive investors know that "average" investors usually outperform "active" investors. The arithmetic is irrefutabl...
by pop77
Wed Jul 02, 2014 4:44 pm
 
Forum: Investing - Theory, News & General
Topic: Bernstein: Don’t Bother With International Bonds
Replies: 112
Views: 9044

Re: Bernstein: Don’t Bother With International Bonds

Investors who are serious about active investing do a lot of research into funds and portfolio managers. Studies that compare active vs passive management seem to assume that investors pick the average or mediocre funds. My thinking is that for all the intellectual energy spent on a board like this...
by pop77
Wed Jul 02, 2014 2:19 pm
 
Forum: Investing - Theory, News & General
Topic: Bernstein: Don’t Bother With International Bonds
Replies: 112
Views: 9044

Re: Bernstein: Don’t Bother With International Bonds

The point I was trying to make with my GIM and FNMIX example is that if we consider foreign bonds as part of your equity portfolio, looks like they provide better risk adjusted returns . For example instead have a 12% allocation to emerging market stocks can one have 9% in emerging market stocks and...
by pop77
Mon Jun 30, 2014 12:39 pm
 
Forum: Investing - Theory, News & General
Topic: Bernstein: Don’t Bother With International Bonds
Replies: 112
Views: 9044

Re: Bernstein: Don’t Bother With International Bonds

I own Templeton Global Bond Closed End Fund (GIM) and Fidelity Emerging Market Bond Fund (FNMIX). They have performed much better than VBTIX but with more risk over time. The question is whether I should redistribute the assets in these funds into EAFE index fund (FSIIX) and Emerging Market Index Fu...
by pop77
Sun Jun 29, 2014 4:21 pm
 
Forum: Investing - Theory, News & General
Topic: Bernstein: Don’t Bother With International Bonds
Replies: 112
Views: 9044

Re: Renegotiating Extra Escrow payments after analysis

When I got the house the town did not value it fully as the house was new, the property tax was low. I am ok with paying the increased property tax (300 more per month), the problem is another increase to offset the deficit in the escrow balance so the total increase is 775 per month. I wanted to ch...
by pop77
Wed Jun 18, 2014 5:53 pm
 
Forum: Personal Finance (Not Investing)
Topic: Renegotiating Extra Escrow payments after analysis
Replies: 9
Views: 502

Renegotiating Extra Escrow payments after analysis

I bought a new home recently and the Escrow for property tax was lower as the estimated property tax did not accurately reflect the final payment. Now the mortgage servicer has done an escrow analysis and sent me a letter that I should be paying an increased escrow to reflect the property tax increa...
by pop77
Wed Jun 18, 2014 4:23 pm
 
Forum: Personal Finance (Not Investing)
Topic: Renegotiating Extra Escrow payments after analysis
Replies: 9
Views: 502

Re: Rent vs buy again ... but with a twist

There is one BIG advantage of owning Vs renting which is not often talked about and I find it surprising. If you own a house outright, your expenses come down by about a third. This means the income from investments you need to support these expenses come down. This means, when you withdraw your ass...
by pop77
Sun May 04, 2014 7:25 am
 
Forum: Personal Finance (Not Investing)
Topic: Rent vs buy again ... but with a twist
Replies: 10
Views: 1521

Re: Asset location strategies for taxes are OK; but not grea

Another consideration I am struggling with is the "Foreign Tax Credit". For example, I hold DGS (Emerging Mkt Small Cap Dividend ETF) in my Roth. It is great that I do not have to pay tax on the dividend distributions but I have no way of claiming credit for all the foreign taxes that were...
by pop77
Mon Apr 07, 2014 9:33 am
 
Forum: Investing - Theory, News & General
Topic: Asset location strategies for taxes are OK; but not great
Replies: 27
Views: 2799

Re: Looking at Total Bond vs Malkiel/Ellis div stocks + EM b

A better chart will be a chart similar to a 'rolling return' chart from Morning Star. Of course it won't be easy to do this chart as you would have to add returns from dividend paying stocks and EMB and compute the chart. One could match their own holding period with the period at which the rolling ...
by pop77
Sun Mar 23, 2014 11:25 am
 
Forum: Investing - Theory, News & General
Topic: Looking at Total Bond vs Malkiel/Ellis div stocks + EM bonds
Replies: 32
Views: 2243

Re: Dividends and the Magic Pants

Julian: this is all nice and swell, but what you end up saying is that dividend stocks are higher returning during crises, and this is simply not true. Here's why: think of company A and company B, both at $100 / share, good correlation except company B pays $5 / year dividend. Now suppose there's ...
by pop77
Sun Mar 23, 2014 10:33 am
 
Forum: Investing - Theory, News & General
Topic: Dividends and the Magic Pants
Replies: 38
Views: 5192

Re: Why do investors prefer cash dividends?

Larry, Looks like you keep stirring this pot whenever you get a chance. Even according to value investing guru(god), uninterrupted dividends paid for long time periods is a reliable indicator of a company's quality. Page 157- The intelligent investor. More importantly, these dividends grow every yea...
by pop77
Wed Mar 05, 2014 7:45 pm
 
Forum: Investing - Theory, News & General
Topic: Why do investors prefer cash dividends?
Replies: 126
Views: 5784

Minimum recommended allocation to an asset class

Hope this is not a repeat question-I did a search on the topic but did find a thread that discussed this. My question is whether there is a minimum allocation in percentage terms each asset class SHOULD have to make difference in terms of risk reduction or increase returns? The minimum I have for ce...
by pop77
Fri Feb 21, 2014 6:28 pm
 
Forum: Investing - Theory, News & General
Topic: Minimum recommended allocation to an asset class
Replies: 5
Views: 492

Re: Drip chart

The best thing I have found so far is Morningstar's growth of 10,000 chart. Unfortunately you cannot directly pull it up for a stock. First pull up the growth chart for an index fund and add the ticker for the stock to compare it with. You will get the growth of the stock with dividends reinvested.
by pop77
Mon Jan 27, 2014 2:35 pm
 
Forum: Investing - Theory, News & General
Topic: DRIP chart
Replies: 4
Views: 595

Re: Portfolio Tweakers - Unite and be ashamed no more

Brought down the split between Emerging Markets/ International Developed markets in international allocation from 50/50 to 33/66. It turned out to be a good move for 2013. Long term don't know. As Emerging Markets are down, this means in 2014 more of the 'new money' will go into Emerging market stoc...
by pop77
Sun Jan 26, 2014 9:19 am
 
Forum: Investing - Theory, News & General
Topic: Portfolio Tweakers - Unite and be ashamed no more
Replies: 37
Views: 2479

Re: Portfolio S.D

Thanks. So I am not really missing anything by not knowing what my portfolio S.D is. The reason I wanted to know about the past is to understand how volatile my portfolio really was given my relatively low allocation to bonds (12%). Theoretically my portfolio could be considered an aggressive one, b...
by pop77
Mon Jan 13, 2014 9:08 am
 
Forum: Investing - Theory, News & General
Topic: Portfolio S.D
Replies: 5
Views: 516

Re: Portfolio S.D

<BUMP>
by pop77
Sun Jan 12, 2014 8:56 pm
 
Forum: Investing - Theory, News & General
Topic: Portfolio S.D
Replies: 5
Views: 516

Re: Increase in the threshold for tax brackets

stock price /Mutual fund NAV is down 50% and I DON't have to sell. If you have a moderately conservative portfolio with a mix of bonds and stocks, you wouldn't be selling when prices are down, you'd be buying. Most people should have been buying in 2008/09. Very high/100% stock portfolios are of co...
by pop77
Sun Jan 12, 2014 12:28 pm
 
Forum: Investing - Theory, News & General
Topic: Increase in the threshold for tax brackets
Replies: 26
Views: 1591

Re: Increase in the threshold for tax brackets

Long term capital gains have a marginal rate of tax which is not the bracket marginal rate. Roth conversions are taxed differently than LT Cap gains. There are also all sorts of phase outs so that your marginal rate can be higher than your bracket rate. Or there can be added income so that your mar...
by pop77
Sun Jan 12, 2014 12:18 pm
 
Forum: Investing - Theory, News & General
Topic: Increase in the threshold for tax brackets
Replies: 26
Views: 1591

Re: Increase in the threshold for tax brackets

One more time: I feel mildly trapped by the dividends I receive. I cannot sell the underlying funds because that would cause huge tax liability. I cannot "not receive" the dividends --- they are paid out every year like clockwork. If there were no dividends, I could have more control over...
by pop77
Sun Jan 12, 2014 12:08 pm
 
Forum: Investing - Theory, News & General
Topic: Increase in the threshold for tax brackets
Replies: 26
Views: 1591

Portfolio S.D

I use quicken to track my expenses and investments and I am able to get the XIRR (Portfolio Return) through Quicken. Is there a way to calculate my portfolio Standard Deviation or Risk? I have multiple accounts (Roth/Regular/Traditional/401(k)/Spouse's etc)
by pop77
Sun Jan 12, 2014 11:59 am
 
Forum: Investing - Theory, News & General
Topic: Portfolio S.D
Replies: 5
Views: 516

Re: Increase in the threshold for tax brackets

Our taxable investments are invested tax-efficiently, so while some stocks pay a 4% dividend rate, the average is about 2% in dividends most of which are qualified, so taxed the same whether in 25%, 28%, or 33% tax bracket. Dividends accounted for more than 15% of our taxable income the past few ye...
by pop77
Sun Jan 12, 2014 11:30 am
 
Forum: Investing - Theory, News & General
Topic: Increase in the threshold for tax brackets
Replies: 26
Views: 1591

Re: Increase in the threshold for tax brackets

Yes, I know. But the marginal tax rate is not always the rate associated with the bracket your taxable income falls in. I guess I am not understanding this. If my AGI is above 75,200 in 2013 my Marginal tax rate is 25% and I am in the 25% bracket right? If I do a Roth conversion my AGI just went up...
by pop77
Sun Jan 12, 2014 11:24 am
 
Forum: Investing - Theory, News & General
Topic: Increase in the threshold for tax brackets
Replies: 26
Views: 1591

Re: Increase in the threshold for tax brackets

The very first section of the tax code 26 USC 1 (2) The table which under paragraph (1) is to apply in lieu of the table contained in subsection (a), (b), (c), (d), or (e), as the case may be, with respect to taxable years beginning in any calendar year shall be prescribed— (A) except as provided i...
by pop77
Sun Jan 12, 2014 10:53 am
 
Forum: Investing - Theory, News & General
Topic: Increase in the threshold for tax brackets
Replies: 26
Views: 1591

Re: Increase in the threshold for tax brackets

Beware of getting mentally anchored on "the brackets" unless you are a college basketball fanatic. Taxes are a little tricky. It is easy for your taxable income to fall "in the XX% bracket" but your marginal tax rate is really YY%. I did a ROTH conversion in 2013 and my marginal...
by pop77
Sun Jan 12, 2014 10:52 am
 
Forum: Investing - Theory, News & General
Topic: Increase in the threshold for tax brackets
Replies: 26
Views: 1591

Re: Increase in the threshold for tax brackets

Don't forget that standard deductions and exemptions will increase, too. Also, one's income doesn't keep increasing monotonically. It may be surprising to young folks, but not to folks over 45, that one's income tends to plateau because there are fewer positions available going up the pyramid. Good...
by pop77
Sun Jan 12, 2014 10:50 am
 
Forum: Investing - Theory, News & General
Topic: Increase in the threshold for tax brackets
Replies: 26
Views: 1591

Increase in the threshold for tax brackets

I am trying to project what my tax bracket would be in retirement (in 20 years) to make a choice between Traditional and Roth 401(k). If my assets and the income from the assets grow conservatively @8%, this would put me in a higher tax bracket than my current situation.However I am using the thresh...
by pop77
Sun Jan 12, 2014 10:21 am
 
Forum: Investing - Theory, News & General
Topic: Increase in the threshold for tax brackets
Replies: 26
Views: 1591

Re: My 30-year Forecast

Great reference page. Helps me for my 'Value Averaging' projections. Two quick questions 1. All the NON-US Bonds are grouped under one category. Do you think this will be different for NON_US Developed Bonds Vs Emerging Market Bonds? Surprised to see a relatively low number here. 2. Do you think NON...
by pop77
Thu Jan 09, 2014 6:49 pm
 
Forum: Investing - Theory, News & General
Topic: My 30-year Forecast
Replies: 63
Views: 6963
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