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Re: Girlfriend with a LOT of Student debt.

What I fear is going through the discussion to find out we are financially incompatible (in terms of how we see repaying it) and leaving her with the knowledge and weight that the debt and philosophy on repayment is what broke us up. :-( It is not your job to insulate her from reality. Let her feel...
by swaption
Mon Nov 24, 2014 2:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: Girlfriend with a LOT of Student debt.
Replies: 158
Views: 10976

Re: Girlfriend with a LOT of Student debt.

Problem is that attitudes toward finances and debt in particular are cultural in many ways. For example, what might seem normal for folks in say California might seem like execessive leverage in someplace like New England (kind of like attitudes toward plastic surgery). So my guess is that the actua...
by swaption
Mon Nov 24, 2014 12:58 pm
 
Forum: Personal Finance (Not Investing)
Topic: Girlfriend with a LOT of Student debt.
Replies: 158
Views: 10976

Re: Isn't everybody here market timing, by definition?

It is market timing, in the sense that buy and hold assumes the market will go up long term. That seems to be a safe assumption, given the history of the stock market and global economy. Assumptions about the short term future are less certain. Exactly. Which is why the mantra about ignoring past p...
by swaption
Fri Nov 14, 2014 4:17 pm
 
Forum: Investing - Theory, News & General
Topic: Isn't everybody here market timing, by definition?
Replies: 32
Views: 1942

Re: Mortgage as a savings vehicle

I'm not going to bother delving into all the details of some of the above calculations, simply because if they result in any answer other than 4.5%, they are wrong. Your mortgage rate is 4.5%. If you pay down $100k, that is your return (absent any tax considerations). Subtract what you can earn else...
by swaption
Fri Nov 14, 2014 4:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: Mortgage as a savings vehicle
Replies: 18
Views: 1831

Re: Isn't everybody here market timing, by definition?

It is market timing, in the sense that buy and hold assumes the market will go up long term. That seems to be a safe assumption, given the history of the stock market and global economy. Assumptions about the short term future are less certain. Exactly. Which is why the mantra about ignoring past p...
by swaption
Fri Nov 14, 2014 3:20 pm
 
Forum: Investing - Theory, News & General
Topic: Isn't everybody here market timing, by definition?
Replies: 32
Views: 1942

Re: Not qualified for my job - what to do?

Don't hide your deficiencies. Problem here is that it is not clear what exactly is causing your stress. Is it your lack of qualifications? Is it your inability to do what is asked? Is it associated with social anxiety tied to discomfort relying on others? Is it your own expecations of yourself? Or p...
by swaption
Fri Nov 14, 2014 2:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: Not qualified for my job - what to do?
Replies: 42
Views: 4737

Re: Kazakhstan Closing The Barn Door - Cows Long Gone

If you believe markets are efficient, there are still cows in the barn. Just because oil futures prices have fallen does not mean they won't fall further, so it may still be rational for large oil exporters to think about hedging. If they change their oil hedging policy frequently based on recent c...
by swaption
Mon Nov 10, 2014 12:01 pm
 
Forum: Investing - Theory, News & General
Topic: Kazakhstan Closing The Barn Door - Cows Long Gone
Replies: 3
Views: 942

Kazakhstan Closing The Barn Door - Cows Long Gone

Never ceases to amaze me the financial decision making process. Story below is about Kazakhstan now exploring with Goldman a program where they would hedge the price of oil. This should not be that tough a concept. The world is full of folks that buy insurance knowing full well that the optimal time...
by swaption
Mon Nov 10, 2014 9:54 am
 
Forum: Investing - Theory, News & General
Topic: Kazakhstan Closing The Barn Door - Cows Long Gone
Replies: 3
Views: 942

Re: Career Advice for an Unhappy Young Doctor?

At the risk of suggesting another book, here it goes: The Inner Game of Stress My guess is she will find it very eye opening, and in some way it will be talking to her. I think the problem is one that is likely very common for doctors, or any high pressure career paths. The stress almost becomes par...
by swaption
Tue Nov 04, 2014 3:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: Career Advice for an Unhappy Young Doctor?
Replies: 116
Views: 13297

Re: Would You Sell Or Continue Renting Out My Condo?

My initial inclination is to sell. I don't think the economics are so compelling. The only consideration that might sway me the other way is that you are currently renting. You are getting married, and while there are no rules, my guess is that you and your wife will be homeowners down the road at s...
by swaption
Tue Oct 28, 2014 2:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: Would You Sell Or Continue Renting Out My Condo?
Replies: 27
Views: 3335

Re: Do stocks have an intrinsic fundamental value?

do you agree with the Efficient Market Theory, that the market is always accurate in incorporating all present infortmation? EMT has nothing to do with whether the market is accurate. Basically, even if you allow for the existence of some intrinsic value for stocks, such a belief in no way contradi...
by swaption
Tue Oct 28, 2014 9:41 am
 
Forum: Investing - Theory, News & General
Topic: Do stocks have an intrinsic fundamental value?
Replies: 31
Views: 2142

Re: A Backtest of the Dividend Growth Model, 1871-2010

Just yesterday, I was looking at pretty much this exact question. But instead of backtesting, I was looking at the Dividend Discount Model DDM from a purely theoretical viewpoint. To cut to the chase, I concluded that the DDM was useful for understanding how price, dividend, growth rate and expecte...
by swaption
Tue Oct 28, 2014 9:12 am
 
Forum: Investing - Theory, News & General
Topic: A Backtest of the Dividend Growth Model, 1871-2010
Replies: 70
Views: 4463

Re: Should I Sue? [couch damaged in garage of rental]

This is just what I would do. But I'm a patsy. I don't regard garages, any garages, as "museum-quality storage." Garages shouldn't leak, but stuff happens. Does it leak enough to ruin a car, or a lawnmower, or bags of garden mulch, or things I usually put in garages? Is it leaking enough ...
by swaption
Fri Oct 24, 2014 12:56 pm
 
Forum: Personal Consumer Issues
Topic: Should I Sue? [couch damaged in garage of rental]
Replies: 39
Views: 3289

Re: Do you regret buying your home?

greg24 wrote:I'm sure renters never regret their choices.


I don't understand this comment.
by swaption
Thu Oct 23, 2014 3:49 pm
 
Forum: Personal Consumer Issues
Topic: Do you regret buying your home?
Replies: 82
Views: 6964

Re: Do you regret buying your home?

Bought in 2002, renovated in 2009. Overall very happy, great neighborhood, great town, great schools, very convenient for work. i do have the following regrets: - Should have bought more house in 2002. In hindsight, what an extra $100 - $150k could have bought would have been well worth it. But in h...
by swaption
Thu Oct 23, 2014 2:57 pm
 
Forum: Personal Consumer Issues
Topic: Do you regret buying your home?
Replies: 82
Views: 6964

Re: "You're invited to...." (nonsense talk and dinner)

I do not go because I can either be honest and offensive or disingenuous. Everyone has a right to make a living and I have no desire to be offensive. So I'm left with disingenuous, and I just can't do that either.
by swaption
Wed Oct 22, 2014 1:25 pm
 
Forum: Personal Consumer Issues
Topic: "You're invited to...." (nonsense talk and dinner)
Replies: 105
Views: 9403

Re: How will we know if value-tilting has stopped working?

Browser Yes it is IMO. There is no anomaly about value stocks having higher returns based on cost of capital story. The only issue is are investors mispricing value stocks for behavioral reasons. I don't think that is correct. IMO the anomaly is really small growth stocks vastly overvalued by inves...
by swaption
Wed Oct 15, 2014 4:17 pm
 
Forum: Investing - Theory, News & General
Topic: How will we know if value-tilting has stopped working?
Replies: 44
Views: 3140

Re: Buffett Says ‘No-Brainer’ to Get a Mortgage to Short Rat

It’s a 30-minute instrument if you’ve been wrong on interest rates and it’s a 30-year instrument if you’ve been right on interest rates.


Classic Buffett. Love this.
by swaption
Fri Oct 10, 2014 2:02 pm
 
Forum: Personal Finance (Not Investing)
Topic: Buffett Says ‘No-Brainer’ to Get a Mortgage to Short Rates
Replies: 77
Views: 9724

Re: Gambling versus Investing

OK,let's look at your definition: "The process of exposing oneself to some form of variable economic outcome with no commensurate expectation of incremental return." By that definition playing Blackjack while card counting (and using proper money management) is not gambling. It's that wha...
by swaption
Fri Oct 10, 2014 1:52 pm
 
Forum: Investing - Theory, News & General
Topic: Gambling versus Investing
Replies: 20
Views: 2830

Re: Gambling versus Investing

Look at the posts on this thread, seems to me that most of you believe: investing = skillful gambling gambling = unskillful gambling However, your word-usage gets in the way of seeing the obvious. I'm not exactly sure what you mean here. I don't think investment in a diversified portfolio such as i...
by swaption
Fri Oct 10, 2014 1:04 pm
 
Forum: Investing - Theory, News & General
Topic: Gambling versus Investing
Replies: 20
Views: 2830

Re: Gambling versus Investing

Look at the posts on this thread, seems to me that most of you believe: investing = skillful gambling gambling = unskillful gambling However, your word-usage gets in the way of seeing the obvious. I'm not exactly sure what you mean here. I don't think investment in a diversified portfolio such as i...
by swaption
Fri Oct 10, 2014 9:44 am
 
Forum: Investing - Theory, News & General
Topic: Gambling versus Investing
Replies: 20
Views: 2830

Re: Gambling versus Investing

In my mind, investing in a single stock has a significant element of gambling regardless of the level of research that goes into the investment decision. I would define gambling as follows: The process of exposing oneself to some form of variable economic outcome with no commensurate expectation of ...
by swaption
Thu Oct 09, 2014 12:42 pm
 
Forum: Investing - Theory, News & General
Topic: Gambling versus Investing
Replies: 20
Views: 2830

Re: Snow Blower

Another vote for Ariens. I had a single stage Honda, which I sold because I needed more. Hondas are top notch, but they price at a significant premium. My Ariens is 24", although I might have gotten bigger if I had more space in garage. Driveway sounds like it is about like yours. When I bought...
by swaption
Wed Oct 08, 2014 8:45 am
 
Forum: Personal Consumer Issues
Topic: Snow Blower
Replies: 49
Views: 2850

Re: What evidence would prove the Boglehead mentality wrong?

Let me ask the question differently, what evidence would convince you that someone could systematically beat the house and make money betting on horse racing or college football? The mechanism by which betting odds and lines are established is not all that different than the mechanism that sets the...
by swaption
Tue Oct 07, 2014 12:00 pm
 
Forum: Investing - Theory, News & General
Topic: What evidence would prove the Boglehead mentality wrong?
Replies: 212
Views: 16108

Re: How to look at real estate ROI

I would like to get some opinions on this. This is what I was taught and it makes sense to me, but please poke holes in it. The idea is that you should calculate real estate return (appreciation, realized on sale of the property) pretty much the same way you would calculate return on any other inve...
by swaption
Mon Oct 06, 2014 3:54 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to look at real estate ROI
Replies: 21
Views: 2565

Re: confronting a coworker

This past April, I reserved off time around Christmas to avoid the situation from happening again, and both my fiancee and mother are working Christmas day, and would have our Christmas on the 24th. My coworker and I had a conversation the other day (and, admittedly I forgot I put the request on th...
by swaption
Fri Oct 03, 2014 1:50 pm
 
Forum: Personal Consumer Issues
Topic: confronting a coworker
Replies: 44
Views: 3669

Re: Shiller: Anxiety Driving up the Stock Market

"You might think this should be the reverse, that the stock market should go down when people are anxious. People are anxious because of (geopolitical unrest), because of inequality, and people are worried about being replaced by a computer. All these things are on people's minds." But be...
by swaption
Fri Oct 03, 2014 1:14 pm
 
Forum: Investing - Theory, News & General
Topic: Shiller: Anxiety Driving up the Stock Market
Replies: 42
Views: 5130

Re: Is my husband a spendthrift? Or I a tightwad?

I just want say that this may now officially be the most bazaar thread ever. I can't believe this started as what appeared to be budgeting for what most would agree are somewhat trivial amounts. But with each peel of the onion, we find a whole new onion, in fact an entire field of onions. Now we hav...
by swaption
Thu Oct 02, 2014 5:13 pm
 
Forum: Personal Finance (Not Investing)
Topic: Is my husband a spendthrift? Or I a tightwad?
Replies: 198
Views: 16534

Re: Is my husband a spendthrift? Or I a tightwad?

Wanted to touch on this part, our view on real estate, which I know most here don't share. Just one last thing, I don't really understand the above. How can you have any view on something like this? Granted finance is not science, but it certainly is not art. You can have a view on types of music, ...
by swaption
Thu Oct 02, 2014 11:35 am
 
Forum: Personal Finance (Not Investing)
Topic: Is my husband a spendthrift? Or I a tightwad?
Replies: 198
Views: 16534

Re: Is my husband a spendthrift? Or I a tightwad?

Re. your assets, I'd be uncomfortable with such a large percentage tied up in real estate, but that's a discussion for another time. Perhaps you are expecting other gifts from your family over time, or a large inheritance, which makes this better... dunno. Good luck. Wanted to touch on this part, o...
by swaption
Thu Oct 02, 2014 7:27 am
 
Forum: Personal Finance (Not Investing)
Topic: Is my husband a spendthrift? Or I a tightwad?
Replies: 198
Views: 16534

Re: Is my husband a spendthrift? Or I a tightwad?

Wow, I just don’t know where to start. Your story sounds like I would imagine many of the stories around me might be like. I live in an area where houses like you describe are not uncommon, where many have a second ski house, and as well the incomes at least on the surface would not necessarily appe...
by swaption
Wed Oct 01, 2014 11:04 am
 
Forum: Personal Finance (Not Investing)
Topic: Is my husband a spendthrift? Or I a tightwad?
Replies: 198
Views: 16534

Re: How to pay for Home Addition

the reason i think it may make financial sense to do this, is strictly b/c i bought 10 years ago, have some equity and it has appreciated. if i sold, i would do well, but when i bought a bigger house nearby i would simply be paying more for the next place. so my thinking was the 150k in appreciatio...
by swaption
Tue Sep 30, 2014 6:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to pay for Home Addition
Replies: 23
Views: 2195

Re: How can I stop feeling depressed about my finances?

You did not make any "fundamental mistake", in fact you have done nothing wrong. I think for some reason you seem to be equating the traditional measures of winning/losing with some measure of self worth. As a result, life seems to have become a burden because of the constant reminders of ...
by swaption
Mon Sep 29, 2014 4:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: How can I stop feeling depressed about my finances?
Replies: 130
Views: 14575

Re: Home Affordability [check my calculations]

Cool, was reading the entire thread with interest, made no note of the date, and then saw the follow up. Like a nice little short story with an ending and everything. This might not have been my choice, in fact when in a similar position and older, we continued to rent in NYC, and then later bought ...
by swaption
Sun Sep 28, 2014 5:23 am
 
Forum: Personal Finance (Not Investing)
Topic: Home Affordability [check my calculations]
Replies: 85
Views: 5760

Re: Stubbornly Non-Boglehead Husband. What To Do?

Hi bluejello, You sound like you are all good, but for some reason I do feel compelled to offer my last 2 cents. No need to reply further, but I do hope you are still reading this. Ultimately I think about this 50/50 solution and while it may ultimately work out financially, it bothers me. To put it...
by swaption
Fri Sep 26, 2014 8:22 am
 
Forum: Investing - Theory, News & General
Topic: Stubbornly Non-Boglehead Husband. What To Do?
Replies: 122
Views: 8060

Re: Stubbornly Non-Boglehead Husband. What To Do?

A very thought provoking post. Being a finance guy myself (and for quite some time working amongst other finance guys), I think I pretty much understand the situation. I think the fundamental problem here is that the two of you have completely different objectives. Your objectives are those that ar...
by swaption
Wed Sep 24, 2014 1:05 pm
 
Forum: Investing - Theory, News & General
Topic: Stubbornly Non-Boglehead Husband. What To Do?
Replies: 122
Views: 8060

Re: Stubbornly Non-Boglehead Husband. What To Do?

A very thought provoking post. Being a finance guy myself (and for quite some time working amongst other finance guys), I think I pretty much understand the situation. I think the fundamental problem here is that the two of you have completely different objectives. Your objectives are those that are...
by swaption
Wed Sep 24, 2014 9:24 am
 
Forum: Investing - Theory, News & General
Topic: Stubbornly Non-Boglehead Husband. What To Do?
Replies: 122
Views: 8060

Re: Are SPIA's fairly priced? - A quick and dirty analysis

The OP's analysis fails in the most fundamental aspect: he has converted a problem with a crucial unknown, actual individual lifespan, into a problem that ignores this aspect completely, a fixed period annuity or mortgage. If we actually knew how long we will live, then financial planning would be ...
by swaption
Sat Sep 20, 2014 5:55 am
 
Forum: Investing - Theory, News & General
Topic: Are SPIA's fairly priced? - A quick and dirty analysis
Replies: 75
Views: 3709

Re: When did you feel "Out of the Woods"?

I would say come to terms with the uncertainties inherent in life, because my bet is it ain't going to change for you any time soon. Being out fo the woods might not be so great anyway, so you might as well learn to enjoy the woods. Put differently, with no house and no kids yet, the way I see it yo...
by swaption
Fri Sep 19, 2014 3:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: When did you feel "Out of the Woods"?
Replies: 42
Views: 5491

Re: Are SPIA's fairly priced? - A quick and dirty analysis

I tend to agree with Prof Emeritus' sources that annuitizing is a beneficial concept but nonetheless, I would really like to know what the Insurance Company's cut on a typical SPIA is. Stated more simply: If an actuarily perfect SPIA for a certain set of conditions yields $1000 a month for life, wh...
by swaption
Fri Sep 19, 2014 3:04 pm
 
Forum: Investing - Theory, News & General
Topic: Are SPIA's fairly priced? - A quick and dirty analysis
Replies: 75
Views: 3709

Re: Are SPIA's fairly priced? - A quick and dirty analysis

My guess is that there are a whole bunch of things standing between this and the appropiate apples to apples analysis, but a couple of things come to mind off the top. I think it may be best to look at the cash flows as akin to a mortgage that amortizes over 20.4 years based on equal periodic paymen...
by swaption
Fri Sep 19, 2014 12:56 pm
 
Forum: Investing - Theory, News & General
Topic: Are SPIA's fairly priced? - A quick and dirty analysis
Replies: 75
Views: 3709

Re: What evidence would prove the Boglehead mentality wrong?

Let me ask the question differently, what evidence would convince you that someone could systematically beat the house and make money betting on horse racing or college football? The mechanism by which betting odds and lines are established is not all that different than the mechanism that sets the ...
by swaption
Wed Sep 17, 2014 8:47 am
 
Forum: Investing - Theory, News & General
Topic: What evidence would prove the Boglehead mentality wrong?
Replies: 212
Views: 16108

Re: Why do so many think their home is a foolproof investmen

But alas those decisions are co-mingled all the time in real life housing decisions. I agree, they are distinct in principal if not in practice. Fine, so the next time there is a thread comparing index funds to active funds, let's make sure we use a disproportionate mix of large growth funds in tha...
by swaption
Tue Sep 16, 2014 4:35 pm
 
Forum: Investing - Theory, News & General
Topic: Why do so many think their home is a foolproof investment?
Replies: 125
Views: 6609

Re: Why do so many think their home is a foolproof investmen

What really blows my mind is the inanity of the repeated posts on this topic. Forget about whether a house can be considered an investment. Any further thoughts I could possibly provide here would be the equivalent of shooting a toy water pistol at a forest fire. I think the far more interesting qu...
by swaption
Tue Sep 16, 2014 4:18 pm
 
Forum: Investing - Theory, News & General
Topic: Why do so many think their home is a foolproof investment?
Replies: 125
Views: 6609

Re: Why do so many think their home is a foolproof investmen

What really blows my mind is the inanity of the repeated posts on this topic. Forget about whether a house can be considered an investment. Any further thoughts I could possibly provide here would be the equivalent of shooting a toy water pistol at a forest fire. I think the far more interesting qu...
by swaption
Tue Sep 16, 2014 3:58 pm
 
Forum: Investing - Theory, News & General
Topic: Why do so many think their home is a foolproof investment?
Replies: 125
Views: 6609

Re: Why do so many think their home is a foolproof investmen

What really blows my mind is the inanity of the repeated posts on this topic. Forget about whether a house can be considered an investment. Any further thoughts I could possibly provide here would be the equivalent of shooting a toy water pistol at a forest fire. I think the far more interesting que...
by swaption
Tue Sep 16, 2014 2:08 pm
 
Forum: Investing - Theory, News & General
Topic: Why do so many think their home is a foolproof investment?
Replies: 125
Views: 6609

Re: Angry when stock market is down

Does anyone else get angry/edgy/cranky on days where the stock market is down? In the last couple of days, I find little things "set me off". But maybe it could also be other factors in my life. For instance, it's annoying to see REITs down 1.8% today. I won't sell, but I'm just annoyed. ...
by swaption
Fri Sep 12, 2014 5:06 pm
 
Forum: Investing - Theory, News & General
Topic: Angry when stock market is down
Replies: 79
Views: 4254

Re: Angry when stock market is down

I work in a very volatile environment. Every day, I show up and ask the crowd what they think of me. On some days, they tell me I'm a loser and my decisions will inevitably lead to failure and the collective lack of respect from the world at large. On other days, they proclaim me a wise man that wil...
by swaption
Fri Sep 12, 2014 12:29 pm
 
Forum: Investing - Theory, News & General
Topic: Angry when stock market is down
Replies: 79
Views: 4254

Re: Rental rate of return

I tell you, there is a Boglehead joke in here somewhere. Something like "How would a Boglehead value a company? He would give you a long speech about how it is waste of time and then recommend you read a book." In this case the annual cash flows are -$18,600, -$17,800, -$16,000, -$15,200,...
by swaption
Fri Sep 12, 2014 10:24 am
 
Forum: Personal Finance (Not Investing)
Topic: Rental rate of return
Replies: 17
Views: 1496

Re: Neighborhood kid around 13 throwing rocks at my house

Criminal defense lawyer here: Please don't call the police. A charge, even a misdemeanor one like trespassing or criminal mischief, can have lifetime consequences for a kid who is probably just bored. Approach him directly and firmly and say, "Hey kid, I know you're throwing rocks at my house....
by swaption
Fri Sep 12, 2014 9:47 am
 
Forum: Personal Finance (Not Investing)
Topic: Neighborhood kid around 13 throwing rocks at my house
Replies: 55
Views: 3237
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