Search found 751 matches

by bertie wooster
Wed May 18, 2016 4:21 pm
Forum: Personal Investments
Topic: ITOT vs VTI in 2016
Replies: 25
Views: 8739

Re: ITOT vs VTI in 2016

I don't think so. Certainly not if you will hold the fund in a tax sheltered account. If you are in a taxable account it is something to consider - but then you'll be tax lost harvesting as well so you may end up holding both depending on what funds you choose as TLH partners.

VTI hasn't issued a cap gain since it's had an ETF share class, I don't expect it will anytime soon.
by bertie wooster
Wed May 18, 2016 4:19 pm
Forum: Personal Investments
Topic: A very large sum and a unique situation
Replies: 24
Views: 4005

Re: A very large sum and a unique situation

The son needs to at least consult estate/tax attorneys since this involves multiple families and probably complex legal/family/tax issues.
by bertie wooster
Wed May 18, 2016 3:08 pm
Forum: Personal Investments
Topic: ITOT vs VTI in 2016
Replies: 25
Views: 8739

Re: ITOT vs VTI in 2016

Leif wrote:Per Morningstar VTI has 27.97% potential cap gains exposure. ITOT has 7.08% exposure.
That's interesting. I would think through the creation of creation units VTI would be able to get rid of most of its cap gains, but I guess not. I'm guessing the reason is possibly because the funds were started at different times. Maybe ishares is better at getting rid of low basis shares? VTI has way bigger volume but maybe it's more buy/hold and ITOT is bought/sold more?
by bertie wooster
Wed May 18, 2016 11:22 am
Forum: Investing - Theory, News & General
Topic: re-investing dividends in withdrawal phase taxable
Replies: 8
Views: 1563

Re: re-investing dividends in withdrawal phase taxable

Since you are using the average cost basis accounting method I don't think it matters. If you were using specific share ID accounting method then this would make things unnecessarily complex.

As far as paying more taxes - using specific share ID allows you to harvest losses much more easily so it will increase the tax efficiency of your portfolio (and thus slightly increase returns) - but it's a bit of work so you have to make sure you understand the details and are OK doing the work. I thought Betterment did all of that automatically, but if they are using average cost basis maybe not.
by bertie wooster
Wed May 18, 2016 11:13 am
Forum: Personal Investments
Topic: ITOT vs VTI in 2016
Replies: 25
Views: 8739

Re: ITOT vs VTI in 2016

TheTimeLord wrote:If you are with Fidelity ITOT is commission free, if you are with Vanguard VTI is commission free. Probably as good a way to decide as any.
Agree - these funds are essentially identical, you'll be fine with either one.

They follow different indexes so you could use as tax loss harvesting partners (though this could be debatable as they are essentially identical...)
by bertie wooster
Wed May 18, 2016 11:11 am
Forum: Personal Consumer Issues
Topic: Higher condo fees on higher floor units?
Replies: 25
Views: 5172

Re: Higher condo fees on higher floor units?

I wouldn't plan on this one changing OP - you're going to have to live with it (or if you are considering buying then factor this not changing into your calculus).
by bertie wooster
Wed May 18, 2016 11:09 am
Forum: Personal Investments
Topic: When to sell?
Replies: 87
Views: 7983

Re: When to sell?

As mentioned earlier I think you need to sit back and make a plan for how you want to invest your money. You need to start with the basics - stock/bond allocation, domestic/international allocation in stocks, maximizing retirement account savings, getting an e-fund, paying of debts, etc. My recommendation to you is to strongly consider the 3 fund portfolio (Total Stock Market, Total International, Total Bond - many threads about this approach are available for your review as well as the wiki). If the funds you own are in taxable accounts and you have a loss then sell now and take the loss. If you have gains then consider waiting until the gains are long term and then selling. Whatever you do, first do some reading. Start with the wiki, peru...
by bertie wooster
Wed May 18, 2016 11:08 am
Forum: Personal Consumer Issues
Topic: Did your children ever completely move out?
Replies: 53
Views: 7720

Re: Did your children ever completely move out?

When we left the house my brother took everything or got rid of it after college. I joined the marines and I think my parents felt a bit sorry for me so lots of my stuff stayed in my bedroom. 25 years later my parents have long since moved but I've got boxes of comic books and baseball cards and coins that are still in their house. I've also got a bunch of CD's that I think my parents will be donating to a library soon.
by bertie wooster
Wed May 18, 2016 11:05 am
Forum: Investing - Theory, News & General
Topic: The inventor of the 401(k) says he created a ‘monster’
Replies: 28
Views: 7357

Re: The inventor of the 401(k) says he created a ‘monster’

meaghansketch wrote:
bertie wooster wrote:Agree wholeheartedly - yes you can save in a 401k and some folks are lucky to have decent options. But there should be a better way since many have plans with horrible, expensive options that enrich the fund providers at the expense of the worker.
And many people don't have plans at all. I've been in my career for over a decade and only once, briefly, have had a 401(k) option. I currently work in a high-tax state at a company with more than 100 people but there is no 401(k) forthcoming.
Very good point.
by bertie wooster
Tue May 17, 2016 5:21 pm
Forum: Investing - Theory, News & General
Topic: The inventor of the 401(k) says he created a ‘monster’
Replies: 28
Views: 7357

Re: The inventor of the 401(k) says he created a ‘monster’

randomguy wrote:
401(k)s are horrible. Wouldn't you be happier just being able to contribute say 58k to an IRA where you get to pick the company you want to deal with rather than being at the mercy of some HR person who decides what the company match will be and what your investment options will be?

Don't confuse the advantages of tax deferral (income smoothing is a pretty good idea) with the implementation (401(k)'s are just one possible way).
Agree wholeheartedly - yes you can save in a 401k and some folks are lucky to have decent options. But there should be a better way since many have plans with horrible, expensive options that enrich the fund providers at the expense of the worker.
by bertie wooster
Tue May 17, 2016 4:39 pm
Forum: Personal Finance (Not Investing)
Topic: selling classic car - tax?
Replies: 44
Views: 7727

Re: selling classic car - tax?

Then we'll just have to agree to disagree because I wouldn't equate my advice to shoplifting. Ok, closer example. Someone pays you for a job in cash, and you don't report it. Earl I see your point, but I think these things are a matter of degree. If someone pays me 500 cash for some furniture I sold on craigslist I wouldn't report (and for the sake of argument someone had given it to me so the basis was 0). If someone paid me 10k for some work I do then I would report it. In this case the OP is sure that he has paid well over what the selling price would be in taking care of this car. The seller isn't going to have a 1099-MISC or something like that issued to the OP. So the seller will pay state taxes when he registers car and I'd leave it...
by bertie wooster
Tue May 17, 2016 2:11 pm
Forum: Personal Investments
Topic: Kids investment
Replies: 26
Views: 3517

Re: Kids investment

flyingbison wrote:
bertie wooster wrote:
flyingbison wrote:
bertie wooster wrote: Since these kids are being paid in cash it is highly likely that this is not W-2 income. OP - a Roth IRA is not an option here.
IRA contributions require earned income, not W-2 income.
I didn't realize this. So to contribute to an IRA w/o earned income do you need to prove taxes (FICA, etc.) were paid on it?
You do have to have earned income to contribute. No proof of that is required to make contributions, it would only bee needed if the IRS ever questioned it.
I see, this is very interesting to me.

I should clarify that I meant w-2 income, not earned income.
by bertie wooster
Tue May 17, 2016 2:08 pm
Forum: Personal Investments
Topic: Kids investment
Replies: 26
Views: 3517

Re: Kids investment

avalpert wrote:I hope you are also teaching them how to figure out their tax liability, including self-employment tax if they are earning cash not as a w2 employee.
I don't think a 16 year old making 100/week needs to worry about paying self employment taxes.
by bertie wooster
Tue May 17, 2016 2:07 pm
Forum: Personal Investments
Topic: Kids investment
Replies: 26
Views: 3517

Re: Kids investment

flyingbison wrote:
bertie wooster wrote: Since these kids are being paid in cash it is highly likely that this is not W-2 income. OP - a Roth IRA is not an option here.
IRA contributions require earned income, not W-2 income.
I didn't realize this. So to contribute to an IRA w/o earned income do you need to prove taxes (FICA, etc.) were paid on it?
by bertie wooster
Tue May 17, 2016 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: selling classic car - tax?
Replies: 44
Views: 7727

Re: selling classic car - tax?

Earl Lemongrab wrote:
bertie wooster wrote:No, I'm saying the issue is irrelevant - but I expected people to get all fired up about it. Just like folks insist in another thread that a babysitter pay FICA rather then get paid in cash. I suppose that is also tax evasion and I am criminal in your eyes, but I don't waste my time on things like this.
Is it not shop-lifting just because no one sees you? The law is clear that capital gains are due even for personal-use items. I don't see how it is irrelevant.

Earl
Then we'll just have to agree to disagree because I wouldn't equate my advice to shoplifting.
by bertie wooster
Tue May 17, 2016 1:14 pm
Forum: Personal Finance (Not Investing)
Topic: selling classic car - tax?
Replies: 44
Views: 7727

Re: selling classic car - tax?

Agree. Don't waste anymore thought on this one. I haven't read all the replies, but knowing this crowd I'm sure some are recommending you consider reporting federal capital gains or at least trying to figure that out. You don't need to worry about capital gains taxes here, move along to something more pressing. So you're suggesting income tax evasion? You DO need to worry about capital gains tax if you have a gain, or at least know that if you don't you might be in violation of the law. Earl No, I'm saying the issue is irrelevant - but I expected people to get all fired up about it. Just like folks insist in another thread that a babysitter pay FICA rather then get paid in cash. I suppose that is also tax evasion and I am criminal in your ...
by bertie wooster
Tue May 17, 2016 1:12 pm
Forum: Personal Finance (Not Investing)
Topic: Pay off credit card, or save for mortgage?
Replies: 14
Views: 1701

Re: Pay off credit card, or save for mortgage?

Please pay off your credit card ASAP and ignore the advice of anyone who tells you to save for a mortgage instead.
by bertie wooster
Tue May 17, 2016 12:14 pm
Forum: Personal Investments
Topic: Kids investment
Replies: 26
Views: 3517

Re: Kids investment

FiveK wrote:Custodial Roth IRA with Schwab: http://www.schwab.com/public/schwab/inv ... todial_ira. $100 minimum and $0 fee for buying Schwab ETFs. https://www.bogleheads.org/wiki/Charles_Schwab might be pertinent.

See also http://blog.famzoo.com/2011/04/pave-roa ... -your.html
Since these kids are being paid in cash it is highly likely that this is not W-2 income. OP - a Roth IRA is not an option here.

They could open a savings account or a CD or a brokerage account and invest in a single total market fund depending on the time horizon for this money. What do they want to do with the money?
by bertie wooster
Tue May 17, 2016 11:40 am
Forum: Personal Finance (Not Investing)
Topic: selling classic car - tax?
Replies: 44
Views: 7727

Re: selling classic car - tax?

Rainier wrote:I seriously doubt your sale will exceed the cost of storing and improving this investment.

The purchaser will not be sending you a1099-b
Agree. Don't waste anymore thought on this one. I haven't read all the replies, but knowing this crowd I'm sure some are recommending you consider reporting federal capital gains or at least trying to figure that out. You don't need to worry about capital gains taxes here, move along to something more pressing.
by bertie wooster
Tue May 17, 2016 12:31 am
Forum: Personal Finance (Not Investing)
Topic: Is it common for a step mother to inherit everything?
Replies: 105
Views: 84990

Re: Is it common for a step mother to inherit everything?

OP - my condolences, this must be very difficult to deal with
TMCD75 wrote:@Randomguy, thanks for your kindness.lol. You are correct on one hand and yes, I'm upset with my father for leaving this mess. Although I could very easily argue and assume that his wife angled her way into his will, excluding his children...and probably did.

Here's my beef, dad knew this lady a total of 15 years. My sister and I are in our early 40s, it makes ZERO sense to leave her everything. Second marriages SUCK, ask any child that has to deal with a step parent...suck is putting it lightly.
You are blaming the wrong person - the stepmom may be an immoral person, but your father chose to disinherit you and give the money to her.
by bertie wooster
Mon May 16, 2016 12:58 pm
Forum: Investing - Theory, News & General
Topic: When is the last time Vanguard altered target date allocations?
Replies: 8
Views: 1851

Re: When is the last time Vanguard altered target date allocations?

As folks have said - too often. A few years back they also increased the stock allocation (in addition to the aforementioned increase in international equity and adding of international bonds). Another problem is that the target date funds (and Life Strategy Funds) do not get admiral status for the funds they invest in - which makes costs a bit higher than they should be (though already quite low). As an aside - I don't think Vanguard should have admiral and investor share classes - just combine them into a single share class with the admiral expense ratio (or whatever incrementally higher amount it would be). With the reduction in the admiral fund minimum to 10k some years ago for index funds, I think the distinction is pretty meaningless ...
by bertie wooster
Mon May 16, 2016 12:49 pm
Forum: Personal Finance (Not Investing)
Topic: Which Job Offer?
Replies: 18
Views: 2663

Re: Which Job Offer?

D and E sound best since based on your post you seem young and these jobs are the most stimulating and best for your career (by your estimation).
by bertie wooster
Mon May 09, 2016 7:41 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes for a summer babysitting gig
Replies: 14
Views: 2792

Re: Taxes for a summer babysitting gig

You worry about it, because it is tax evasion otherwise. Is that what you want to teach your children in their first job? You really don't get to decide whether this is W-2 employment or self-employment. ... You need to educate this friend to do it the right way. Getting paid $9 instead of $10 is a reasonable approach. Even offer to work through setting up the payroll with them. I guess we just disagree. I have never hesitated to pay my taxes, when I was a kid I mowed a ton of lawns and was paid in cash - it didn't teach me any bad lessons. If someone approached me about paying a babysitter as you recommend I'd find another babysitter. (I should add - one thing I learned from my time mowing so many lawns as a kid is that I passionately hat...
by bertie wooster
Mon May 09, 2016 3:25 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes for a summer babysitting gig
Replies: 14
Views: 2792

Re: Taxes for a summer babysitting gig

She'll make 4k max? I wouldn't worry about it - let them pay her in cash and move on.

Are you doing this b/c you want her to make Roth IRA contributions?
by bertie wooster
Fri May 06, 2016 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: More House or More Investing?
Replies: 25
Views: 4275

Re: More House or More Investing?

Max out your retirement accounts (assuming you have an emergency fund - if you don't than fund that first) and then start working on your downpayment.

You are in your mid 20's - give yourselves time to enjoy the beginning of your marriage and then figure if/when/how many kids you want. Once you have an idea of that in a few years (and have been maxing retirement savings and funding house downpayment) start looking at what kind of house you want to settle in.

Good Luck!
by bertie wooster
Thu May 05, 2016 6:22 pm
Forum: Personal Finance (Not Investing)
Topic: Couples: Are you and your significant other on the same page financially?
Replies: 65
Views: 9211

Re: Couples: Are you and your significant other on the same page financially?

masterofinvesting wrote:I am in the same boat as OP, but we are at least 20-30 years away from retirement. My wife absolutely despises budgets (no amount of allocation to "Clothing - Casual" will satisfy her). The differences in approach towards saving/spending was initially frustrating, but I've learned to adjust. Basically, instead of budgeting, I just use Quicken to look back and see if our savings rate is decent. If it looks OK, I don't bother. I also try to compensate as much as I can with my own spending.
Your handle and avatar rock!

The situatoin you describe is tough, hopefully you guys can find some middle ground.
by bertie wooster
Thu May 05, 2016 6:21 pm
Forum: Personal Finance (Not Investing)
Topic: Couples: Are you and your significant other on the same page financially?
Replies: 65
Views: 9211

Re: Couples: Are you and your significant other on the same page financially?

Wildebeest wrote:My wife and I do not see eye to eye on asset allocation.

She is a 60/40 equity- bond person. I like 100 % stock, small value tilted to the max and I am very happy I have access to DFA Emerging markets small cap and DFA Int'l Small Cap Value I without an AUM fee.

She is very generous in that it I feel strongly and she lets me have my way and play.
I think the compromise portfolio between your 2 extremes would be a pretty good balance (70/30 stock bond or around there)
by bertie wooster
Thu May 05, 2016 4:36 pm
Forum: Personal Finance (Not Investing)
Topic: One job offer, what should I do??
Replies: 45
Views: 5615

Re: One job offer, what should I do??

Since you've already interviewed with the hiring manager, I would strongly recommend skipping the letter and just placing a phone call. If his secretary answers, you should identify yourself as somebody who has recently interviewed with said manager and would like to set up a time to speak with him/her on the phone regarding an offer you just received from another employer. If they really want you as an employee, nothing will make them move more quickly than knowing you have another offer. If they don't, then you're likely better off taking the other offer. I know that it is much more comfortable for most people to just write the letter, but a phone call will be much more effective in determining where you stand. It will also make an impre...
by bertie wooster
Thu May 05, 2016 4:35 pm
Forum: Personal Investments
Topic: Oh boy, what to do
Replies: 27
Views: 5919

Re: Oh boy, what to do

You have 80k of gold buried in your backyard???

Dig it up and sell it. Or at least store it somewhere safe.
by bertie wooster
Thu May 05, 2016 12:24 pm
Forum: Personal Investments
Topic: VTMSX in IRA
Replies: 6
Views: 2158

Re: VTMSX in IRA

I wouldn't, but if you want smaller companies and have confirmed yourself that tax managed small cap has smaller companies then go for it.

There are also numerous ETF's that have smaller companies than Vanguard's small cap fund (I haven't bothered looking this up because I don't think it's worth the effort).
by bertie wooster
Wed May 04, 2016 11:26 pm
Forum: Personal Consumer Issues
Topic: Not at fault Car accident, should I file for Arbitration?
Replies: 26
Views: 4017

Re: Not at fault Car accident, should I file for Arbitration?

Sounds like you were in his blind spot, he didn't check, and tried to go into your lane.

I don't see how you are possibly at fault. I would insist on full payment from his insurance. What is GEICO telling you?
by bertie wooster
Mon May 02, 2016 11:53 am
Forum: Investing - Theory, News & General
Topic: Minimizing equities until a bear market if you already have enough
Replies: 22
Views: 3729

Re: Minimizing equities until a bear market if you already have enough

I think you should just lower your stock allocation - clearly your need to take risk is low.
by bertie wooster
Mon May 02, 2016 11:52 am
Forum: Personal Investments
Topic: No tax advantaged accounts - all muni bonds?
Replies: 12
Views: 2125

Re: No tax advantaged accounts - all muni bonds?

I'd just use the intermediate term muni fund. Simple and I think it's diversified enough - clearly others disagree.
by bertie wooster
Wed Apr 27, 2016 11:27 am
Forum: Personal Finance (Not Investing)
Topic: Question for the Bogleheads Millionaires
Replies: 372
Views: 76969

Re: Question for the Bogleheads Millionaires

bengal22 wrote: This is just one man's opinion but to me living below one means brings up image of a monk-like existence. To me if you give regularly, save regularly, and pay expenses then you are living within your means. Those that live above their means spend more than they can afford.
This is semantics then. Most folks here who recommend living below ones means are not advocating a "monk like existence" - that's an extreme that some advocate, but not most.

I think you are recommending what most others here recommend.
by bertie wooster
Wed Apr 27, 2016 11:25 am
Forum: Personal Investments
Topic: VSUX versus IEFA [Vanguard Total Int'l vs. iShares MSCI EAFE]
Replies: 6
Views: 5913

Re: VSUX versus IEFA

They don't just track different indexes, they are markedly different funds. IEFA also lacks emerging markets (as well as Canada as you noted, I'm guessing it has South Korea but haven't looked closely). VXUS is all markets minus the US.

VXUS is more diversified and probably more risky due to its inclusion of IEFA.

If you want to include emerging markets - buy VXUS (which I would recommend). If you don't buy IEFA.
by bertie wooster
Sun Apr 24, 2016 5:23 pm
Forum: Personal Consumer Issues
Topic: Fixing up your home - or just selling it?
Replies: 17
Views: 2654

Re: Fixing up your home - or just selling it?

As another poster said, you need to resign yourself to the bad timing-it's a sunk cost.

Sounds like you don't have the funds to buy right now (raiding retirement funds is NOT an option!).

Fix the deck, then prioritize projects that you need to fix.

Good luck!
by bertie wooster
Sat Apr 23, 2016 5:42 pm
Forum: Investing - Theory, News & General
Topic: mixing stocks in 3 fund portfolio
Replies: 12
Views: 1350

Re: mixing stocks in 3 fund portfolio

tludwig23 wrote:
RJBlues wrote:...but a buddy tells me...
Since there are no capital gains issues in a tax-advantaged account, I'd just sell them and buy the index fund. Unless your buddy is Warren Buffett.
Well said! +1
by bertie wooster
Sat Apr 23, 2016 5:39 pm
Forum: Investing - Theory, News & General
Topic: Every DFA fund (ex-S&P 500) has underperformed the S&P 500 for the past decade
Replies: 104
Views: 16459

Re: Every DFA fund (ex-S&P 500) has underperformed the S&P 500 for the past decade

ZenInvestor wrote:
bertie wooster wrote:
ControlContentment wrote:Market arbitrage. Over the next ten years I guarantee you dividend payers will underperform.
Have you shorted them?
That would be silly... He said under perform, not decline in value.
Good point, my mistake.

I find guarantees like this silly and was trying (and failed) to point this out.
by bertie wooster
Sat Apr 23, 2016 12:28 pm
Forum: Investing - Theory, News & General
Topic: Every DFA fund (ex-S&P 500) has underperformed the S&P 500 for the past decade
Replies: 104
Views: 16459

Re: Every DFA fund (ex-S&P 500) has underperformed the S&P 500 for the past decade

ControlContentment wrote:Market arbitrage. Over the next ten years I guarantee you dividend payers will underperform.
Have you shorted them?
by bertie wooster
Fri Apr 22, 2016 11:19 pm
Forum: Investing - Theory, News & General
Topic: Do you think this is a bad time to enter the market? With the dow at 18,000
Replies: 89
Views: 12319

Re: Do you think this is a bad time to enter the market? With the dow at 18,000

KlangFool wrote:
rec7,

I think you should not invest in the market at all since you need to know when is a good time to enter the market.

KlangFool
How does this remark help anyone? When people are beginning they have questions and putting money on the stock market can be intimidating. I'm sure you had misgivings as well, so give the OP a break.
by bertie wooster
Fri Apr 22, 2016 3:42 pm
Forum: Personal Finance (Not Investing)
Topic: Question for the Bogleheads Millionaires
Replies: 372
Views: 76969

Re: Question for the Bogleheads Millionaires

bengal22 wrote:of money
2. Start saving regularly in your early 20's and never stop

p.s. living below your means is overrated


I always remember those early IRA ads that showed the beauty of compound interest. So if you invest x amount every year starting at the age of 21 you will be a millionaire before you retire. It works
How does one start saving in there 20's and never stop without living below one's means?
by bertie wooster
Fri Apr 22, 2016 12:54 pm
Forum: Personal Investments
Topic: What do you wish you had known in your early 20's?
Replies: 46
Views: 11912

Re: What do you wish you had known in your early 20's?

rob wrote:
bertie wooster wrote:I wish I knew about asset allocation and index funds. It took the tech crash in 2000 for me to learn about indexing.
See... I had found indexing by then; QQQ all the way - How could that go wrong :oops: .
Ha! I was in the same boat! In addition to QQQ I had microsoft, JDSU, AHRMY, cisco, and a bunch of other tech stocks. I was convinced I was well diversified! Expensive lesson learned...
by bertie wooster
Fri Apr 22, 2016 12:53 pm
Forum: Personal Consumer Issues
Topic: Volkswagen DieselGate Compensation - Any Tax Implications?
Replies: 20
Views: 9323

Re: Volkswagen DieselGate Compensation - Any Tax Implications?

We've got a 2012 Jetta Wagon and assuming the buyback price is fair we'll take that. The car has some other problems as well. VW has an incentive to offer a fair price so that people drop class actions.

But everything is just rumors now - we'll have to wait a number of months to see what the actual offer is.

I unfortunately bought a 2015 golf TDI weeks before this came out. In CA diesel has been much less expensive than gas for the past year or so, and the golf is reliably getting 50-55 mpg (interestingly, the car's calculation is reliably 10% too high) - so that's a small silver lining. In retrospect I wish I'd just gotten a civic...
by bertie wooster
Wed Apr 20, 2016 3:06 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 36221
Views: 4651245

Re: U.S. stocks in freefall

Starper wrote:
So, while know that I can't predict the market, i'm still tempted to sell a big part of my s&p500 index fund and sit on cash for awhile, maybe invest it in p2p lending if nothing else. Haven't done anything yet, definitely not an easy decision for me.
This is a bad idea. If you're in cash you will never know when to get back in. P2P lending is pretty darn risky and not diversified.

Just leave your money in the index fund. You're not worried about using the money in the short term (and if you are, don't put it in stocks), it's for a long term goal (typically retirement)
by bertie wooster
Wed Apr 20, 2016 2:33 pm
Forum: Personal Investments
Topic: What do you wish you had known in your early 20's?
Replies: 46
Views: 11912

Re: What do you wish you had known in your early 20's?

I wish I knew about asset allocation and index funds. It took the tech crash in 2000 for me to learn about indexing.
by bertie wooster
Mon Apr 18, 2016 12:47 pm
Forum: Investing - Theory, News & General
Topic: What are Pros and Cons to the "Four Hour Workweek?"
Replies: 99
Views: 15971

Re: What are Pros and Cons to the "Four Hour Workweek?"

staythecourse wrote:Didn't read the other posts so apologize if I am repeating, but the ONLY way someone is getting easy money in this world is if they are lying, cheating, stealing, marrying, or inheriting it.

For everyone else and MUCH more so for self owning business folks they work hard to make it. Anyone who is saying anything else is just not being honest.
Agree
by bertie wooster
Mon Apr 18, 2016 12:39 pm
Forum: Investing - Theory, News & General
Topic: Is Vanguard High-Yield Tax-Exempt really a high yield fund?
Replies: 12
Views: 2951

Re: Is Vanguard High-Yield Tax-Exempt really a high yield fund?

It is appropriate for a high yield bond fund, but as Taylor says, most likely not appropriate for the portion of your allocation you put towards bonds.
by bertie wooster
Mon Apr 18, 2016 11:58 am
Forum: Personal Investments
Topic: What expected % return should a longterm investor use?
Replies: 73
Views: 13559

Re: What expected % return should a longterm investor use?

bertie wooster wrote:
ryman554 wrote:
David Jay wrote:I use 9% for my stock allocation and 4% for my bonds (I want to be conservative).

Here is a Vanguard chart with various allocations: https://personal.vanguard.com/us/insigh ... llocations
I'm honestly trying to figure this comment out -- how is this considered conservative in today's environment? (I'm assuming you mean nominal numbers.)
I agree - this does not strike me as remotely conservative.
by bertie wooster
Mon Apr 18, 2016 11:58 am
Forum: Personal Investments
Topic: What expected % return should a longterm investor use?
Replies: 73
Views: 13559

Re: What expected % return should a longterm investor use?

I use 9% for my stock allocation and 4% for my bonds (I want to be conservative). Here is a Vanguard chart with various allocations: https://personal.vanguard.com/us/insights/saving-investing/model-portfolio-allocations I'm honestly trying to figure this comment out -- how is this considered conservative in today's environment? (I'm assuming you mean nominal numbers.) even 30 year bonds today are 3%ish, and stocks over the past 10-20 years are, what, something like 6-7% nominal? With S&P something like 8% CAGR for the history? To be conservative, I treat bonds as 0% real. Stocks as 4% real. Bit of an underestimate on both fronts, historically, but not by a whole lot and likely within a semi-pessimistic expectation. I agree - this does ...
by bertie wooster
Mon Apr 18, 2016 11:55 am
Forum: Investing - Theory, News & General
Topic: Emergency fund needed?
Replies: 17
Views: 2671

Re: Emergency fund needed?

If you have a ton of money sitting in ETF's then I think it's fine to use that as an e-fund (but I would keep a few thousand in liquid cash for quick access if needed).

We keep a small portion of the our emergency fund in cash and the rest in Vanguard's CA intermediate term muni. Other folks think it must only be in cash. Do whatever works for you.