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Re: Should you hold bonds and a mortgage at the same time?

Very interesting discussion. Is there a way to attach a value to 'tax deference'? I have a mortgage at 2.75% pretax and all my bonds are in tax-deferred (VBTIX) with SEC yield of 2 %. Assuming my current income tax rate and income tax when I withdraw my bond is going to be same, looks like paying of...
by pop77
Tue Mar 31, 2015 10:58 am
 
Forum: Investing - Theory, News & General
Topic: Should you hold bonds and a mortgage at the same time?
Replies: 89
Views: 7063

Re: Five most important things to be a successful investor?

1. LBYM - Save first (by making saving automatic(401k)) and spend what is left
2. Read past market history - How markets crashed and eventually came back
3. Have an Emergency Fund
4)Avoid debt other than mortgage/student loan
5) Invest in assets with highest volatility (and highest return) early on
by pop77
Tue Mar 17, 2015 4:03 pm
 
Forum: Investing - Theory, News & General
Topic: Five most important things to be a successful investor?
Replies: 31
Views: 3186

Re: My portfolio diversification

Good cautionary tale on Kodak and Fannie Mae. As knowledge is cumulative, I am learning a lot. My strategy and approach is lot different than what I did 10 years ago. I have learned my lesson with financials and I am not going to repeat it. Regarding Kodak example, this is the reason I am nervous ab...
by pop77
Mon Mar 16, 2015 5:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: My portfolio diversification
Replies: 10
Views: 862

Re: My portfolio diversification

Thanks Ned. My dividend stock portfolio is a carefully selected set of stocks which I hope will help mitigate the risk somewhat. I understand they are not bond substitutes theoretically but can serve the purpose practically. They are names like JNJ, PEP, UTX ,KO, WMT, MCD,AAPL, NSRGY,GIS,WPPGY etc w...
by pop77
Mon Mar 16, 2015 11:02 am
 
Forum: Investing - Help with Personal Investments
Topic: My portfolio diversification
Replies: 10
Views: 862

Re: My portfolio diversification

Here are the allocations FSIIX - Intl Dev Markets -15% FPMAX - Emerging Markets Stock - 10% GIM - Global Bond - 6% FNMIX -Emerging Markets Bond - 6% VNQ - USRE - 6% VNQI - Intl RE - 6% VSCPX - SMall Cap - 7.5% VMCPX - Mid Cap - 7.5% VBTIX - US Bond - 13% IGF - Infrastructure - 8% HACMX - Commodity -...
by pop77
Mon Mar 16, 2015 9:52 am
 
Forum: Investing - Help with Personal Investments
Topic: My portfolio diversification
Replies: 10
Views: 862

My portfolio diversification

Here is the asset correlation matrix for 50% of my investments. The remaining 50% is in individual dividend paying stocks (mostly US). As you might see this asset matrix does not have any asset class for US large cap. Please comment on whether you think this portion of the portfolio is well diversif...
by pop77
Mon Mar 16, 2015 7:55 am
 
Forum: Investing - Help with Personal Investments
Topic: My portfolio diversification
Replies: 10
Views: 862

Re: Rental Car Prices - is this the new normal ?

The most annoying part is almost half of the charge is in taxes in fees. If you are a AAA member try booking Hertz through their website. They have good discounts.
by pop77
Sun Jan 25, 2015 8:20 am
 
Forum: Personal Consumer Issues
Topic: Rental Car Prices - is this the new normal ?
Replies: 89
Views: 8179

Re: Roth 401k Vs Traditional 401k question

Roth 401k has RMD. However, you can rollover the Roth 401k assets to Roth IRA to avoid RMD. With 20K pension income which may fill your 0% bracket upon retirement, you may be able to withdraw from 401k at lower average tax rates than the 25% fed 5% state that you'd pay now for Roth 401k contributio...
by pop77
Sat Jan 17, 2015 3:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: Roth 401k Vs Traditional 401k question
Replies: 4
Views: 359

Re: Roth 401k Vs Traditional 401k question

Are you in the child tax credit phaseout region? Will you collect your pension at retirement or will that be delayed until later? A pension of $20K and $35K in dividends puts you in the 15% bracket for MFJ and standard deductions with about $40K to spare. Without more information, such as the size ...
by pop77
Sat Jan 17, 2015 3:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: Roth 401k Vs Traditional 401k question
Replies: 4
Views: 359

Roth 401k Vs Traditional 401k question

I have read a lot about the subject and still am not able to reach a conclusion! Here is my situation 10 Years away from retirement (Best case scenario) Have a dividend portfolio in taxable that is currently paying about $9100 in dividends, projected to grow at 6% P.A, with dividends reinvested, I a...
by pop77
Sat Jan 17, 2015 12:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: Roth 401k Vs Traditional 401k question
Replies: 4
Views: 359

Re: Keurig Coffee Makers

I was postponing buying this as a typical frugal person, however I pulled the plug for two reasons 1. Consistency in coffee 2. Ease and Comfort. 3. More importantly a good coffee in the morning makes my whole day more productive :-) Try to get the 1.0 version of Keurig which is compatible with any K...
by pop77
Mon Jan 05, 2015 3:46 pm
 
Forum: Personal Consumer Issues
Topic: Keurig Coffee Makers
Replies: 37
Views: 2788

Re: How do you define "being rich"?

When you get a menu in a restaurant and you look at the calories instead of the price, you are rich. :happy
by pop77
Sat Dec 20, 2014 1:37 pm
 
Forum: Personal Consumer Issues
Topic: How do you define "being rich"?
Replies: 127
Views: 9640

Re: Investing Emergency Funds?

Thanks. Looks like calculating how many years of expenses will your fixed income cover can be a good cross check in making sure you got the right allocation.
by pop77
Sun Dec 07, 2014 12:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investing Emergency Funds?
Replies: 12
Views: 1228

Re: Investing Emergency Funds?

I've written that I don't have an emergency fund per se. But I have tiers of money that I can spend: 1. One week of expenses in checking. 2. 6 months of expenses available as credit card lines. Remember in an emergency I don't have to pay them in full every month. 3. 5 years of expenses in short-te...
by pop77
Sun Dec 07, 2014 7:37 am
 
Forum: Investing - Help with Personal Investments
Topic: Investing Emergency Funds?
Replies: 12
Views: 1228

Re: What % of your fixed-income is TIPs?

I want to take a step back and look in what situations will TIPS be of help . 1. If it is a deflationary time - TIPS won't help - Treasuries are the way to go. 2. If there is expected inflation, TIPS is already priced in - TIPS won' t help. 3. If there is 'unexpected inflation' AND if the economy is...
by pop77
Thu Dec 04, 2014 8:13 am
 
Forum: Investing - Theory, News & General
Topic: What % of your fixed-income is TIPs?
Replies: 71
Views: 3714

Re: Why bother with Bonds? Norstad example

c) If he is using Total Return, then yes, this does take into account the effect of reinvested dividends. It takes into account returns from dividends but NOT when the dividends are invested (and at what prices). I am assuming if dividends get reinvested at reduced prices throughout the 40 year tim...
by pop77
Mon Dec 01, 2014 8:04 pm
 
Forum: Investing - Theory, News & General
Topic: Why bother with Bonds? Norstad example
Replies: 6
Views: 1576

Why bother with Bonds? Norstad example

Recently completed reading of "Why bother with Bonds?" book. Overall a great book for beginners and has a very simple discussion on why we need bonds. However I found the argument "Risk does not decrease with equities over a 40 year period" argument citing Norstad.org article too...
by pop77
Mon Dec 01, 2014 10:48 am
 
Forum: Investing - Theory, News & General
Topic: Why bother with Bonds? Norstad example
Replies: 6
Views: 1576

Re: Investing Math Question

Thanks everyone. I wanted this to be an approximate projection , I understand that it is not accurate in terms of not having the exact date of investment. I am conservatively assuming that all new money invested next year is not earning any returns. I typically try to get to my asset allocation by a...
by pop77
Sun Nov 30, 2014 7:30 am
 
Forum: Investing - Theory, News & General
Topic: Investing Math Question
Replies: 10
Views: 1495

Investing Math Question

I have a simple question which might seem stupid to veterans here. Say I have about 100,000 dollars in a specific investment. Assume the expected return on this asset is 8% (of which 3% is dividend and 5% is capital appreciation). Also I am expected to invest 10,000 dollars in new money on this inve...
by pop77
Sat Nov 29, 2014 4:49 pm
 
Forum: Investing - Theory, News & General
Topic: Investing Math Question
Replies: 10
Views: 1495

How much to save for retirement?

Recently I stumbled upon this article that comes with a rather simple way to arrive at a nest egg needed for retirement. http://savvyscot.com/easiest-way-ever-know-much-money-need-retirement/ The basic premise is to understand your yearly expenses and the number of years in retirement. Let us say we...
by pop77
Thu Nov 06, 2014 4:53 pm
 
Forum: Investing - Theory, News & General
Topic: How much to save for retirement?
Replies: 9
Views: 2716

Re: Dry Powder

dbr wrote:
Chan_va wrote:Isn't that what bonds and rebalancing were designed for? I don't get it


Right, that is where the false analogy comes in.


What is both Stocks and Bonds are down? Have we never seen such a scenario? There is possibility that it might happen.
by pop77
Thu Oct 16, 2014 12:21 pm
 
Forum: Investing - Theory, News & General
Topic: Dry Powder
Replies: 49
Views: 3640

Re: Dry Powder

Couple of months back I started a couple of discussions on having Cash as a targeted allocation in the portfolio for SOLE purpose of buying in dips. This does not apply to the bucket approach where retirees have a portion in Cash/ST instruments to withstand market drops (For example, having one yea...
by pop77
Thu Oct 16, 2014 12:18 pm
 
Forum: Investing - Theory, News & General
Topic: Dry Powder
Replies: 49
Views: 3640

Re: Dry Powder

I'd stick with bonds. It's not like anyone doesn't know that the market will flicuate,... Is *flicuate* when you watch consecutive flicks on TV? :) Seriously, other than stated in OP (emergency, ST need in withdrawal, etc.), the only reason to hold cash at 0% return is to market time. The taboo reg...
by pop77
Thu Oct 16, 2014 12:15 pm
 
Forum: Investing - Theory, News & General
Topic: Dry Powder
Replies: 49
Views: 3640

Re: Dry Powder

So, let's say you have X% of your assets in "dry powder." A dip comes and you buy stocks. You now have less/no dry powder. How do you replenish your dry powder? Do you sell stocks when they rise? Sell bonds? Change your allocation? With the exception of the first use of dry powder, the re...
by pop77
Thu Oct 16, 2014 12:08 pm
 
Forum: Investing - Theory, News & General
Topic: Dry Powder
Replies: 49
Views: 3640

Dry Powder

Couple of months back I started a couple of discussions on having Cash as a targeted allocation in the portfolio for SOLE purpose of buying in dips. This does not apply to the bucket approach where retirees have a portion in Cash/ST instruments to withstand market drops (For example, having one year...
by pop77
Thu Oct 16, 2014 6:28 am
 
Forum: Investing - Theory, News & General
Topic: Dry Powder
Replies: 49
Views: 3640

Re: Quicken 2015 for Windows - Any reviews?

MY REVIEW (in Amazon) as I upgraded today. First some background to alleviate any concerns on the legitimacy of my review. Disclaimer: I bought the PC disk version. I recommend the PC Disk as my experience in using it was smooth. 1. I am a quicken user from 2011 Fall. In 2011 fall October I got my ...
by pop77
Sat Oct 11, 2014 7:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: Quicken 2015 for Windows - Any reviews?
Replies: 109
Views: 19359

Quicken 2015 for Windows - Any reviews?

Did anyone upgrade to Quicken 2015 Premier for Windows yet? Love to hear reviews/feedback if anyone did.
by pop77
Wed Oct 08, 2014 7:21 am
 
Forum: Personal Finance (Not Investing)
Topic: Quicken 2015 for Windows - Any reviews?
Replies: 109
Views: 19359

Re: Fidelity Enhances Passwords

Fidelity recently enhanced the complexity of passwords on their accounts. They increased the maximum password length to 20 characters and they now REQUIRE at least one of a few select "special characters". Previously, passwords were limited to 12 alpha-numeric characters (no special chara...
by pop77
Sun Oct 05, 2014 9:28 am
 
Forum: Personal Finance (Not Investing)
Topic: Fidelity Enhances Passwords
Replies: 11
Views: 3696

Re: I Bonds - Now or November

tipswatcher wrote:
We're looking at $10 either way, eh?


$10, plus all the fun of pondering these things.


+1

It is $10/yr for a total of $300.. :D
by pop77
Fri Sep 19, 2014 6:43 am
 
Forum: Investing - Theory, News & General
Topic: I Bonds - Now or November
Replies: 8
Views: 1658

I Bonds - Now or November

With fixed rate at 0.1% and inflation expectations lower, does it make sense to buy this year's quota of I Bonds now or wait till the new rate in Dec?
by pop77
Thu Sep 18, 2014 3:30 pm
 
Forum: Investing - Theory, News & General
Topic: I Bonds - Now or November
Replies: 8
Views: 1658

Credit Card Account [Automatically Closed] due to inactivity

Today I had an interesting experience with my credit cards. I had a Citi Platinum card which I have not used for a long time. I recently saw the thread on the Citi Double cash card and I called in to see whether they can transfer the Citi Platinum card into the Double Cash card. To my surprise I was...
by pop77
Sun Sep 07, 2014 11:09 am
 
Forum: Personal Finance (Not Investing)
Topic: Credit Card Account [Automatically Closed] due to inactivity
Replies: 29
Views: 2141

Re: Bucket Path - Asset Allocation

Doesn't make sense to me. One reason for combining asset classes is for diversification. You don't want to risk a significant string of unhedged low returns. The misnamed Callan Periodic Table is useful for this kind of thought experiment, assuming you don't care enough to do a quantitative model. ...
by pop77
Tue Sep 02, 2014 2:31 pm
 
Forum: Investing - Theory, News & General
Topic: Bucket Path - Asset Allocation
Replies: 7
Views: 811

Re: Bucket Path - Asset Allocation

Dr. Bernstein talks about something similar in "Ages of the Investor". He quotes a study that concluded using leverage when you are young is rational. The flaw in this is behavioral: the young investor, who hasn't benefited from the experience of living through market cycles, would lose h...
by pop77
Tue Sep 02, 2014 2:26 pm
 
Forum: Investing - Theory, News & General
Topic: Bucket Path - Asset Allocation
Replies: 7
Views: 811

Bucket Path - Asset Allocation

There have been many threads here on glide paths, reverse glide paths, increasing and decreasing glide paths etc. Has there been any studies in following a bucket path towards asset allocation? Here is how I explain the bucket path. Say you decide you need $1M to retire. Assume you chose the three f...
by pop77
Tue Sep 02, 2014 6:49 am
 
Forum: Investing - Theory, News & General
Topic: Bucket Path - Asset Allocation
Replies: 7
Views: 811

Re: International allocation

Nobody has brought this up yet, let me try. Out of curiosity I looked up the list of S&P 500 companies in Wikipedia and sorted it by headquarters. I found a bunch of companies headquartered in Dublin Ireland, some in Switzerland. My question is when we talk about allocation are we taking into a...
by pop77
Wed Aug 27, 2014 10:41 am
 
Forum: Investing - Theory, News & General
Topic: International allocation
Replies: 81
Views: 5649

Re: Can a Commodities Fund be a Long-Term Investment?

few things Second re PCRIX as pointed out seems you are making the very bad mistake of looking at PRICE ONLY returns, not total returns. Same thing can happen say with REITS which are required to pay out almost all earnings.. Larry May be I have to wait longer but my experience with CCF (PCRDX and ...
by pop77
Mon Aug 25, 2014 10:26 am
 
Forum: Investing - Theory, News & General
Topic: Can a Commodities Fund be a Long-Term Investment?
Replies: 45
Views: 3669

Re: International allocation

Nobody has brought this up yet, let me try. Out of curiosity I looked up the list of S&P 500 companies in Wikipedia and sorted it by headquarters. I found a bunch of companies headquartered in Dublin Ireland, some in Switzerland. My question is when we talk about allocation are we taking into ac...
by pop77
Mon Aug 25, 2014 7:30 am
 
Forum: Investing - Theory, News & General
Topic: International allocation
Replies: 81
Views: 5649

Re: Dividend Strategy Ain't For Everyone

What you have outlined in your example is an illusion. The market value of an equity portfolio depends on the price of a stock. The problem with price of a stock is that it is based upon Mr. Market's mood. One dollar of earnings may be value as 25 dollars when Mr. Market is in a good mood or it cou...
by pop77
Sun Aug 10, 2014 7:54 am
 
Forum: Investing - Theory, News & General
Topic: Dividend Strategy Ain't For Everyone
Replies: 149
Views: 12055

Re: Dividend Strategy Ain't For Everyone

My take is, it's an illusion because, while you aren't ACTIVELY selling part of your shares when the market is down, the company is paying you a certain amount of it's equity as a dividend. You are effectively passively selling a portion your shares. And really, that's the basic point of all of thi...
by pop77
Fri Aug 08, 2014 6:29 pm
 
Forum: Investing - Theory, News & General
Topic: Dividend Strategy Ain't For Everyone
Replies: 149
Views: 12055

Re: Dividend Strategy Ain't For Everyone

OK then. If you think accounting and math are illusions, then there is no point in me discussing this any further. Best of luck to you! Accounting and Math are not illusions, your belief that market is always fairly and uniformly valued so that you can sell at any time and get the same valuation is...
by pop77
Fri Aug 08, 2014 6:24 pm
 
Forum: Investing - Theory, News & General
Topic: Dividend Strategy Ain't For Everyone
Replies: 149
Views: 12055

Re: Dividend Strategy Ain't For Everyone

True. Right now I can manage along the edges but once RMDs start, game over on taxes -- even with ROTH conversions. But my main point was that spending dividends is the same as selling stock (independent of tax issues). The idea that living off dividends enables one to "avoid selling stocks in...
by pop77
Fri Aug 08, 2014 2:25 pm
 
Forum: Investing - Theory, News & General
Topic: Dividend Strategy Ain't For Everyone
Replies: 149
Views: 12055

Re: Stop Passing Up This Great Deal - In Money Magazine

What is the possibility of paying increased premiums for health insurance bought through Affordable Care Act(Obamacare)? Any Roth withdrawals don't count towards your income, however Traditional withdrawals count and can increase your premiums.
by pop77
Wed Aug 06, 2014 7:16 am
 
Forum: Investing - Theory, News & General
Topic: Stop Passing Up This Great Deal - In Money Magazine
Replies: 80
Views: 13101

Re: Dividend Strategy Ain't For Everyone

I don't know, i tend to look toward bonds for high dividends (high yield, emerging markets, etc). If you don't care about the principal and only care about the dividend, why not go with high yield bond funds? Maybe I am missing something... Well, for example, in August 2004 the Vanguard high yield ...
by pop77
Sun Aug 03, 2014 10:40 am
 
Forum: Investing - Theory, News & General
Topic: Dividend Strategy Ain't For Everyone
Replies: 149
Views: 12055

Re: Dividend Strategy Ain't For Everyone

Yes if the buyback is made with definite metrics when the stock is undervalued (Like Berkshire). Not when the companies buyback their shares at all time highs to hide share dilution due to stock options (Like Cisco, Intel etc. )
by pop77
Sat Aug 02, 2014 7:39 pm
 
Forum: Investing - Theory, News & General
Topic: Dividend Strategy Ain't For Everyone
Replies: 149
Views: 12055

Re: Dividend Strategy Ain't For Everyone

THank you so much pop77 for responding. I wanted to hear from dividend investors as well. I conclude that its a matter of preference on how someone invest. Rather it be dividend investor the step 1 and 2 investor, we all want the same goal. You seem to be doing well with your plan. I am not exclusi...
by pop77
Sat Aug 02, 2014 6:17 pm
 
Forum: Investing - Theory, News & General
Topic: Dividend Strategy Ain't For Everyone
Replies: 149
Views: 12055

Re: Dividend Strategy Ain't For Everyone

I don't think this is a skill that the average person on the street can master or would be interested in mastering. While I don't disparage what you are doing, it is certainly not for the average person, in my opinion. And for that reason, I'm glad we can fall back on the relatively simple approach...
by pop77
Sat Aug 02, 2014 3:00 pm
 
Forum: Investing - Theory, News & General
Topic: Dividend Strategy Ain't For Everyone
Replies: 149
Views: 12055

Re: Dividend Strategy Ain't For Everyone

Here is what is funny to me. People talking about buying dividends stocks and working everyday just like me! Maybe I am slow or too simple thinking. I rather do step 1 and 2 ANYDAY of the week, then sit in front of a computer watching a 30-70 dividends stocks daily and keeping up with who is paying...
by pop77
Sat Aug 02, 2014 8:20 am
 
Forum: Investing - Theory, News & General
Topic: Dividend Strategy Ain't For Everyone
Replies: 149
Views: 12055

Re: Dividend Strategy Ain't For Everyone

As noted many times before, this forum is hardly the place for a rational discussion of income stock investing. It quickly degenerates into name calling and put downs; frankly, it's tiresome. To proudly assert that income stock investors are irrational, illogical, ignorant, with "blinders on&q...
by pop77
Sat Aug 02, 2014 8:08 am
 
Forum: Investing - Theory, News & General
Topic: Dividend Strategy Ain't For Everyone
Replies: 149
Views: 12055

Re: Do any boggleheads invest in individual companies?

Prior to adopting the Bogleheads approach, I used a dividend growth stock approach to investing. Since my stocks are all well above what I paid for them, and yielding a nice return, I cannot bring myself to sell them and pay capital gains tax. So I just use the dividends to spend or to buy index fu...
by pop77
Mon Jul 28, 2014 2:42 pm
 
Forum: Investing - Theory, News & General
Topic: Do any boggleheads invest in individual companies?
Replies: 95
Views: 6264

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 9:25 am
 
Forum: Personal Finance (Not Investing)
Topic: A.C or No A.C?
Replies: 12
Views: 966
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