Search found 111 matches

by bucksfan2
Thu May 28, 2015 3:35 pm
Forum: Investing - Theory, News & General
Topic: Any impartial advocates for the other point of view?
Replies: 32
Views: 4550

Re: Any impartial advocates for the other point of view?

To me the question is whether or not you feel the 1% the adviser charges is worth the cost? What type of value does the adviser provide to you and are you willing to pay for that value? Are you willing to devote the time and effort into managing your own investments? Are you willing to stick to an investment plan that you draw out? Does paying an adviser help you sleep better at night? I have an adviser who managers about half of my portfolio. To me it is worth the fee for what he is providing me right now. At this stage in my life he has helped me and advised me on setting up Roth's, dealt with transferring my wife's old 401K into a Roth, had helped with setting up 529 for my girls and has helped advise me on insurance and starting estate ...
by bucksfan2
Fri Mar 27, 2015 3:31 pm
Forum: Personal Finance (Not Investing)
Topic: Placing brokerage account into a living trust
Replies: 14
Views: 9481

Re: Placing brokerage account into a living trust

My lawyer suggested doing so. With a living trust when you pass anything that is included in the trust does not have to go through probate. It would make it easier on your heirs as well as your executor.
by bucksfan2
Wed Mar 04, 2015 10:31 am
Forum: Personal Finance (Not Investing)
Topic: new car battery
Replies: 45
Views: 7217

Re: new car battery

Just a few thoughts from someone who is in the industry. You generally get at least 3 years out of new batteries, after that it is a crap shoot. we have seen batteries last up to 12 years before. Every once in a while there is a true defective battery that goes bad well before it should. From my experience Walmart batteries are junk. They seem to be the least reliable battery we see. The big box stores are pretty high on battery prices. Be very careful when you get a printout that says your battery is bad. To often the newest battery testers are all electronic and if there is a poor connection the battery will read bad. We see quite a few batteries where customers bring them in saying AutoZone or their oil change place said their battery wa...
by bucksfan2
Thu Feb 26, 2015 11:11 am
Forum: Investing - Theory, News & General
Topic: Buy and Hold Forever Stocks
Replies: 104
Views: 18010

Re: Buy and Hold Forever Stocks

My buy and hold for a long time are: GE AAPL AEP VZ PG UA UPS I don't know how long I will hold them, I have held GE for the past 20 years and it has been a dog over the past handful. I got these guys on autopilot and DRIP. Sure one may go the way of Enron or Kodak, but they may also be successful. And 20 years ago how many of those stocks would have made anyones buy and hold forever list? I expect if we look back in 20 years about half of any list we make today will look stupid. Now if the other half does well enough to compensate is the tougher question;) And that is just 20 years. When I think about forever, I am thinking 50+ years. Almost half (well VZ is sort of trickey) of that list wasn't even around in 1965. That being said the buy...
by bucksfan2
Wed Feb 25, 2015 2:32 pm
Forum: Investing - Theory, News & General
Topic: Buy and Hold Forever Stocks
Replies: 104
Views: 18010

Re: Buy and Hold Forever Stocks

My buy and hold for a long time are:

GE
AAPL
AEP
VZ
PG
UA
UPS

I don't know how long I will hold them, I have held GE for the past 20 years and it has been a dog over the past handful. I got these guys on autopilot and DRIP. Sure one may go the way of Enron or Kodak, but they may also be successful.
by bucksfan2
Tue Feb 24, 2015 1:57 pm
Forum: Personal Finance (Not Investing)
Topic: How much did you have saved up for retirement at age 30?
Replies: 173
Views: 27991

Re: How much did you have saved up for retirement at age 30?

I am 32 so two years further along. I went and looked what I had at years end and realized I had to get started on the 2015 spreadsheets. Between my Roth, my Wife's Roth and Roth 401K We have roughly $115K with probably another $100K+ in my 401K. I just haven't received the statement for 2014 yet. Out house is paid off, we have about $15K in my daughters 529. I have started to get a little more ambitious in my 401K withholding over the last year or so. My wife graduated with a Bachelors in Nursing last May, landed a job that is paying for a large portion of her Practitioners degree. Once that hit and we no longer had to keep tuition liquid I started to put more and more into my 401K. Hopefully over the next couple of years we both will be a...
by bucksfan2
Mon Jan 26, 2015 12:28 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone regret paying off mortgage early?
Replies: 2483
Views: 294028

Re: Anyone regret paying off mortgage early?

We paid off our house about a year and a half ago. The only regret I have was stretching to pay off the remaining amount. The finish line was in sight and I went ahead and paid a few more months mortgage to extinguish the loan. Moving those payments up a couple of months maybe wasn't the best idea, but after a few months passed it was no big deal. I don't really consider my home an investment per say. My family needs somewhere to live, whether it is a place we own or a place we rent. My house value is what someone is willing to pay me for my house. If it is a level I am willing to accept then great, if it is not then I will not sell. I am sure all of us have an amount that if someone offered we would sell no questions asked. I am beginning ...
by bucksfan2
Mon Nov 10, 2014 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: War on Debt
Replies: 247
Views: 44059

Re: War on Debt

Currently i have $25,000 of consumer debt (all below 10% for those whom are wondering). I also have $200k in student loans, a car just recently leased, and my wife's car is half way paid off (not sure of the balance, but lets assume it is around $7k). We also have a mortgage at $1,580 (expected to go down again next spring as we recently had our taxes reassessed). Income is about $115k if you exclude my second job. After all of our bills are paid (including payments to service debt and $100/month for savings) we have about $600 a month left. We also have a baby on the way and of course all of the expenses that go with that. My game plan is to get as much debt paid down, as quickly as possible before the baby comes into the picture. After t...
by bucksfan2
Wed Oct 22, 2014 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: How much to spend on a remodel?
Replies: 7
Views: 1330

Re: How much to spend on a remodel?

I recently did a remodel in my basement. I turned a unfinished room and half bath in to a den/office and full bath. $15-$20K seems pretty high compared to what we did. I hired a professional to do most of the difficult and important stuff. I hired someone to run the wiring and hired a plumbing company to cut the drain into my floor and mount the shower base that I purchased from Lowes. Most of the other stuff I did required manual labor but wasn't all that difficult bot required practice and patience. Granted I have a father in law who helped me frame the walls and tile the bathroom as well as a friends who were willing to help with the drywall (payment in beer and pizza) but the reality is if you get someone who knows what they are doing t...
by bucksfan2
Wed Aug 27, 2014 2:05 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgages and financial freedom
Replies: 111
Views: 11518

Re: Mortgages and financial freedom

My wife and I paid off our house about a year ago. We originally started with a 30 year loan, refied to a 15, and then refied to a lower interest rate. I wouldn't say we aggressively paid down the mortgage, but I had a couple CD's mature that I threw at the mortgage. If we had a tax refund that we didn't have earmarked for something else we threw it at the mortgage. When grandma, who always lauded the fact that her and my grandpa paid off their house in 18 years and lived rent free for close to 50, passed I decided to take the money and pay off our loan. When we paid off the loan it wasn't like a burden was lifted it was just another day where my savings was down about $20,000. When that first, first of the month passed where a mortgage pay...
by bucksfan2
Tue Aug 26, 2014 1:29 pm
Forum: Personal Investments
Topic: What 5 stocks can I own forever?
Replies: 58
Views: 8554

Re: What 5 stocks can I own forever?

I could have given you several answers that people would give you right off the bat. 1) Would be the mention of Enron, Worldcom, and now the recent favorite of Estman Kodak. 2) I own AAPL, GOOG, JNJ, etc. all in VT. 3) Mention how GE was once at $40 a share and incorrectly mention how it suspended its dividend. It cut its dividend, it did not suspend. 4) A three fund portfolio will be given as a response to your question. There is a great amount of knowledge shared on this site. I have found out that while people very freely give out information, they like their method and only their method. To answer your original question I would go with names like: AAPL GOOGL JNJ WFC PG KO GE BA DUK AEP Who knows what will be around forever, or as long a...
by bucksfan2
Tue Aug 19, 2014 2:09 pm
Forum: Investing - Theory, News & General
Topic: Your biggest "Missed Money" event that still kills you?
Replies: 102
Views: 14199

Re: Your biggest "Missed Money" event that still kills you?

Back in 2008(9) I thought about doing a hail mary trade on BAC. I wouldn't have invested more than a couple thousand, but had I had a discount brokerage account at the time I would have bought BAC around $4/share.

I was out at a bar with a friend who worked at Fifth Third Bank. I bought a round and made mention to her that the beer I just bought her was more expensive than the stock of FITB. I debated buying FITB around $2/share but never pulled the trigger. It now trades at ~$20/share.

I owned Under Armour because I was very fond of the product. I sold UA when it got to its 52 week (may have been an all time) high around $34 a share. I have since watched it split twice and currently sits around $70/share.
by bucksfan2
Thu Aug 14, 2014 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: Berkshire Hathaway A's about to hit $200k/pps
Replies: 42
Views: 4521

Re: Berkshire Hathaway A's about to hit $200k/pps

I have always thought Buffet's stance of dividends is quite a bit ironic. He invest heavily in dividend paying companies, raking in almost $500,000,000 from KO dividends alone. I fully believe that BERK doesn't pay a dividend because of tax reasons. Most of his worth is tied up in stock, he doesn't pay a dividend he pays little taxes, and with him set to give most of his money to charity when he passes he really has no need for the extra income. His motto could be "do as I say not as I do."
by bucksfan2
Fri Aug 08, 2014 1:36 pm
Forum: Investing - Theory, News & General
Topic: Dividend Strategy Ain't For Everyone
Replies: 149
Views: 17700

Re: Dividend Strategy Ain't For Everyone

I have found the whole "buying the dividend" theory to be a sound theory but lacking in reality.

Most stocks move based upon where the stock is going in the future not where it is now.

I think growth rates, dividend growth rates, cash flows, dividend payout ratio's, all have more weight on the value of a stock then what happens to a $100 stock when it pays a $1 dividend.
by bucksfan2
Fri Aug 08, 2014 12:44 pm
Forum: Investing - Theory, News & General
Topic: Dividend Strategy Ain't For Everyone
Replies: 149
Views: 17700

Re: Dividend Strategy Ain't For Everyone

Sidney wrote: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 a down market" is just an illusion.
How exactly is it an illusion?
by bucksfan2
Thu Aug 07, 2014 3:10 pm
Forum: Investing - Theory, News & General
Topic: Dividend Strategy Ain't For Everyone
Replies: 149
Views: 17700

Re: Dividend Strategy Ain't For Everyone

I follow a DRIP strategy for my taxable portfolio. I try to find companies that have a good history of not only paying dividends but also increasing them each and every year. It may not fit most peoples strategy but at this point in my life it fits mine. I am still relatively young (32) and in the time I have spent investing in dividend paying stocks I have learned quite a bit. I have seriously curtailed my trading, and have become a pretty "lazy" investor. I still pay attention to the ebbs and flows of a market but rarely trade. Right now I own 2 non dividend paying stocks in UA and GOOGL for the shear fact that I believe them to be two of the most innovative companies in the world. I also own a small portion of Manchester United...
by bucksfan2
Mon Jul 28, 2014 2:55 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need umbrella insurance?
Replies: 35
Views: 7362

Re: Do I need umbrella insurance?

In my experience umbrella insurance is cheap and well worth it.
by bucksfan2
Thu Jul 17, 2014 3:30 pm
Forum: Investing - Theory, News & General
Topic: Millennials (with jobs) are super-saving their retirement
Replies: 65
Views: 13909

Re: Millennials (with jobs) are super-saving their retiremen

I ask millenials how they fell a lot. I do this when also begging them to understand that we are desperate for them to solve the problems. If I were a millenial, I would be scared to death given the unsustainability of several of the programs (let's skip politics as that is not allowed) and lack of problem-solving as I see it. They routinely do tell me that they have no expectation of ever getting social security (I tell them they are wrong) and very concerned about jobs. These concerns never were a part of my life as a youngster or a 20 - 30 something. I am 32, born in 1982. I am not relying on SS to be there when I get to retirement age. The only think I am hoping for is Medicare. I got good advice from my dad as well as my uncles to ope...
by bucksfan2
Wed Jul 16, 2014 2:07 pm
Forum: Personal Finance (Not Investing)
Topic: Why I can't be a day trader.
Replies: 38
Views: 4238

Re: Why I can't be a day trader.

When I first signed up with TD Ameritrade I bought Under Armour (UA). When it surpassed its 52 week high I decided to sell it and take some profits, I thought the run was over. I sold it at $41/share. 2 stock splits and a number of years later it currently trades at 57.52/share. Nothing has changed with the company and I like the stock as much then as I do now. I sold it because I thought it was overpriced. Had I held onto it from the time I bought it until now I would have quite a considerable gain on my hands. It was a learning lesson for me for sure. Checking T each and every day is going to drive you nuts. Its going to be up, its going to be down, 10 years from now it will probably be much higher than when you sold it. If it were me I w...
by bucksfan2
Tue Jun 24, 2014 8:19 am
Forum: Personal Finance (Not Investing)
Topic: Lost a lot in stocks and starting fresh: Please Help
Replies: 90
Views: 16889

Re: Lost a lot in stocks and starting fresh: Please Help

OP, I'm not sure I understand why you are renting an apartment and also carrying a mortgage. Are your apartment and your rental house in the same city? Do you *want* to be a landlord? You're not making anything on the rental. Probably not even breaking even if you're honest about what depreciation on the house is going to cost you. (As an aside, are you getting fair-market rent? If it rented in 3 days you might be charging less than the going market rate...) The rental is in a different city and we are currently renting in Atlanta. Being a landlord was not a choice but I didn't want to lose 25K just to get rid off the house back in 2013. Now the house is around 10k more than what I paid for. If you're going to keep the house (although I'm ...
by bucksfan2
Fri Jun 20, 2014 3:01 pm
Forum: Personal Finance (Not Investing)
Topic: Late starters: what age did you start investing?
Replies: 94
Views: 18018

Re: Late starters: what age did you start investing?

My dad started an account for me when I was a kid. When I was eligible for my company's 401(K) at 23 I started to put 5% to get the max company match. I work for a family owned company and after a couple of years I got kicked out of that program and was given a bonus to cover what would have been my contribution with the recommendation to start a Roth IRA. My adviser at the time recommended putting the max of $5K in a Roth and have done that ever since, about 6 years later. Recently I have been increasing the amount of money I contribute each week to my 401K. I haven't gotten to the point where I can max out my 401(K), I am hoping to get there in the next few years. I had a wife going back to school and a toddler in the house that took up a...
by bucksfan2
Thu May 22, 2014 8:06 am
Forum: Personal Investments
Topic: 2600 days of every dollar tracked
Replies: 68
Views: 9259

Re: 2600 days of every dollar tracked

Cool charts. There have often been times I have wondered how much I have spent on alcohol over the past decade. I have been out of college for 10 years now and have been working full time since then. How much did I spend in my early twenties when we were going out much more often to now where my tastes have gotten a little more expensive. I have moved more to craft beer but don't drink nearly the volume anymore. I think that number would be shocking, something I don't really want to know. But back to the OP's comment that he wouldn't trade it, I fully agree. Beers with friends, some who you don't see anymore, times spent out at the bars with friends, on vacation, just the overall good times, and bad mornings, were part of the process of liv...
by bucksfan2
Wed May 21, 2014 1:11 pm
Forum: Personal Investments
Topic: Talk me out of or into keeping individual stock
Replies: 42
Views: 5109

Re: Talk me out of or into keeping individual stock

[Maybe. I differ from the boglehead philosophy in that I like dividends, I like dividend paying stocks. AT&T has been a solid stock who has raised its dividend for the past 30 years. GE was a solid stock that raised it's dividend for 30 years.... Until it crashed 80%, and discontinued its dividend. It's still 33% down from it's peak in 2008 while the total market has recovered and then some. GE never discontinued its dividend, it slashed it. GE has been a company that was hard hit and hasn't fully recovered. Where will it be in 5 years? Where will it be in 10 years? If you can answer those question with conviction let me know so I can act on it. We can pick and choose stocks and how they reacted during generational type events. It coul...
by bucksfan2
Wed May 21, 2014 8:01 am
Forum: Personal Investments
Topic: Talk me out of or into keeping individual stock
Replies: 42
Views: 5109

Re: Talk me out of or into keeping individual stock

Roughly 1300 shares of T will throw off $2400 in dividends a year, reinvested would net you at today's price 67 shares a year. If it were me I would keep the shares, continue to reinvest the dividend and then check back in 5 or 10 years. AT&T is a company who has raised its dividend over the past 10 years, even through the great recession (I know it could be the boogie man Enron), and I don't see that stopping anytime soon. If 50% of your money was tied up in T, would you still make that same decision above? The OP should view the holding in the context of the OP's entire portfolio value, if the value of the holding exceeds a comfort threshold of more than 5-7% of total holdings I would advise diversifying out of it. No one likes to wa...
by bucksfan2
Tue May 20, 2014 2:39 pm
Forum: Personal Investments
Topic: Talk me out of or into keeping individual stock
Replies: 42
Views: 5109

Re: Talk me out of or into keeping individual stock

Roughly 1300 shares of T will throw off $2400 in dividends a year, reinvested would net you at today's price 67 shares a year.

If it were me I would keep the shares, continue to reinvest the dividend and then check back in 5 or 10 years. AT&T is a company who has raised its dividend over the past 10 years, even through the great recession (I know it could be the boogie man Enron), and I don't see that stopping anytime soon.
by bucksfan2
Thu May 08, 2014 11:26 am
Forum: Personal Finance (Not Investing)
Topic: I like the investment strategy , not really the lifestyle
Replies: 67
Views: 9591

Re: I like the investment strategy , not really the lifestyl

The people on this forum aren't normal, not in a negative way, just in the way most people operate. Most of the advice given is good, sound, textbook solid advice. The problem I have found is that often this advice can be taken to the extreme's by some, mostly the fervent bogleheads. I have found at my stage in life that isn't for me. The discussion on a wedding ring had me shaking my head in disbelief, I wish I could have gone back in time, gave my wife a cubic zirconium wedding ring and a ROTH IRA contribution just to see what she would have done. Her reaction may have been trending on youtube for a while. I have found things on this site that have helped me out greatly. Ideas, suggestions, goals, anything positive you can take away from ...
by bucksfan2
Tue May 06, 2014 1:23 pm
Forum: Personal Finance (Not Investing)
Topic: Should I be worried about my girlfriend's debt?
Replies: 57
Views: 8358

Re: Should I be worried about my girlfriend's debt?

This is an interesting question to ask these boglehead folk. I think often on this forum too much focus goes towards finances and money and not enough goes towards the enjoyment of life. If this is the girl you intend to be with for the foreseeable future this question is pretty funny. $60K-$90K is pretty substantial amount of money, but is that really an amount of money that would scare you away from a lifetime of happiness with your girlfriend? It sounds like student loan debt is the only debt she currently has, and in her field, a masters is often required. Its one of those necessary evils, you choose a career that you think you will enjoy but it requires more schooling and more debt. Just a couple of quick thoughts. That is her debt, de...
by bucksfan2
Mon May 05, 2014 2:51 pm
Forum: Personal Finance (Not Investing)
Topic: How much house can you afford to buy? When is it to much?
Replies: 34
Views: 7505

Re: How much house can you afford to buy? When is it to much

Do you feel comfortable continuing your lifestyle on $3,000 a month?

From my perspective you can afford this house. It doesn't sound like you have expensive tastes or hobbies. One thing to consider when you do purchase a house is all the expenses that go along with it. Do you have enough furniture? Will you need to buy appliances or have they been left? 4 bedroom and 4 bath with a full basement can take a lot furnish. You are probably going from a 2 bedroom apartment to a 4 bedroom house, there is a lot of space that needs to be filled.

I don't buy the "instant equity" comment. If you are the only ones willing to pay $200,000 what makes you think that someone will come along willing to pay the appraised value?
by bucksfan2
Fri May 02, 2014 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: To repair or not to repair basement
Replies: 11
Views: 2129

Re: To repair or not to repair basement

I went thorough a similar process. I was turning a storage area in my basement into a den (bedroom) and adding a shower. Occasionally we would get water in the basement and it has been a multiple year fight. In the end I spent countless hours landscaping outside to keep water away from my house, had a plumber put in a sump pump, and finally after my wife was downstairs seeing water come in an epoxy guy came in and repaired a crack. Each different guy had good ideas about what to do. Simple things like making sure there weren't any gaps between my front porch and the ground. That was solved by by some topsoil and labor. Also making sure my downspouts were pointing away from the foundation, which was about a $30 fix. The guy who did the epoxy...
by bucksfan2
Fri May 02, 2014 1:26 pm
Forum: Personal Finance (Not Investing)
Topic: What's your number?
Replies: 147
Views: 37862

Re: What's your number?

I don't know. Its a great question because it has made me start to think. I am 32 and if you asked me 5 years ago I am sure my answer would have been completely different. Right now my focus is to put away as much money while putting my wife through graduate nursing school and growing our family. I am thinking my number is in the $3-$5M range, my head says it is prudent to work until I am 67 but my heart says I don't want to work for 35 more years.
by bucksfan2
Thu May 01, 2014 2:53 pm
Forum: Personal Finance (Not Investing)
Topic: Did you tell anyone you paid off your mortgage?
Replies: 338
Views: 62050

Re: Did you tell anyone you paid off your mortgage?

Told my parents. My grandmother passed away and left all her grandkids with a small inheritance. It was enough to finish paying off my mortgage and I told my parents that we did so. I haven't told any of my friends, my wife has, but to me it isn't one of those things that is readily talked about.
by bucksfan2
Wed Apr 30, 2014 2:21 pm
Forum: Personal Investments
Topic: I've done it all wrong!
Replies: 15
Views: 3159

Re: I've done it all wrong!

Help. I'm 47, married with 4 kids and I've barely put any money away for retirement. I'd like to try and salvage the future and be able to retire. About six years ago I lost my job and was unemployed and brought all my 401k (earnings up to that point) and gave them over to a financial advisor. He's been managing them since then. Several times I've had to make withdrawals for hardships. I have around 14k there. The company I work at currently has been struggling and does not do 401k matching. I have about 1,700 there after three years. No additional income gets put away as we are living check to check at home with occasional overdraft bank fees when unexpected expenses arise. My wife just recently got a full time job but makes very little t...
by bucksfan2
Wed Apr 30, 2014 11:25 am
Forum: Personal Investments
Topic: Dividend fund vs Bond fund?
Replies: 10
Views: 2380

Re: Dividend fund vs Bond fund?

@nispris

Question about your chart. Where do you see the Bond Index fund moving going forward? The time period represented by you chart points to a period where interest rates were going down and currently stand at levels close to 0. If I had 10K to invest today aren't I more concerned about what is going to happen going forward than what happened in 5 years ago? If I look at overall interest rates and see them at levels that can't go lower, would it be prudent to put 10K in a bond fund paying low rates and regular income tax on the interest?
by bucksfan2
Mon Apr 21, 2014 3:49 pm
Forum: Personal Finance (Not Investing)
Topic: Question about Probate cost
Replies: 17
Views: 2039

Re: Question about Probate cost

My mom asked me to look into estate planning now that she's moved to a different state. It appears that in California, her estate will split equally among her children, so she wouldn't need a will unless she wants to change that distribution or indicate who it should go to if all her children passes away before her. On the other hand, I notice that the probate cost is rather high. According to the California site (and also Boglehead), the cost is 4% on the first $100,000 3% on the next $100,000 2% on the next $800,000 and so on. So 1 million estate would end up with a probate cost of $23,000. Question: Are these cost associated with hiring a lawyer? If someone were to fill out paper forms, would they have to pay the same cost? Since her as...
by bucksfan2
Thu Apr 10, 2014 8:33 am
Forum: Personal Finance (Not Investing)
Topic: Getting over huge mistakes
Replies: 30
Views: 4858

Re: Getting over huge mistakes

I read your OP and thought to my self, life is meant to be lived. You are ahead of the game, I don't see a need to live a spartan life. Cutting out all extracurricular activities may leave you depressed during the golf season. Did you use the gym membership you just cancelled? Your routine exercise may pay for itself by living a healthy lifestyle.

Make strides to max out all your retirement avenues, but make sure you are enjoying yourself going forward. I don't understand the need to max out every retirement account while live a miserable life.
by bucksfan2
Mon Feb 17, 2014 1:17 pm
Forum: Personal Finance (Not Investing)
Topic: Do you balance your checking account?
Replies: 114
Views: 9497

Re: Do you balance your checking account?

Can someone explain what a statement is to me?

I used to balance my checkbook. I used to do it on the register they gave you with your checks. I don't do that anymore, I check my accounts at least once a week and make sure that all payments and deposits are what they should be. If everything looks kosher then I don't do anything else. If I write a check that has tax ramifications I print that off as soon as it is posted and it goes in that year's tax folder. I have two accounts at my bank, one with a better rate and one a primary checking account. I used to actively make sure I had the minimum in the checking and everything else in the savings. Now since the interest rate is nothing I don't really care.
by bucksfan2
Tue Feb 11, 2014 1:26 pm
Forum: Personal Investments
Topic: Dividend Income
Replies: 16
Views: 2980

Re: Dividend Income

There are finance theories that suggest dividends as being irrelevant (especially in highly efficient markets) where an investor can sell shares if they wanted to monetize the value they have in the company. Evidence of this can be seen by watching how the price of a stock falls the same amount when a dividend is paid. http://www.investopedia.com/exam-guide/cfa-level-1/corporate-finance/dividend-theories.asp Legendary investors Warren Buffett, Phillip Fisher, and others, have discussed in various ways how dividends are better utilized if the company retains earnings and reinvests them in the business (provided it's a good company that's growing the equity of the owners). Evidence of this benefit can be seen looking at the the price-to-book...
by bucksfan2
Wed Feb 05, 2014 11:13 am
Forum: Investing - Theory, News & General
Topic: Just got a free consultation by Personal Capital. Thoughts?
Replies: 50
Views: 12246

Re: Just got a free consultation by Personal Capital. Though

I happen to be reading A Random Walk Down Wall Street right now and it mentions that 60 is the magic number by which one can get most of the risk reduction benefit from diversification, though it doesn't necessarily argue that that's what you should do. From that point on your risk profile tends to track the market (beta is close to 1) depending on the stocks selected. If they're all value stocks, then they'll track closer to a value index, etc. Selecting individual stocks has tax benefits in that you will not incur capital gain taxes, only dividend taxes which will largely be qualified (or non existent for many of your growth stocks). It also allows you more opportunities to harvest tax losses than if you just held a single index fund whi...
by bucksfan2
Thu Jan 23, 2014 1:15 pm
Forum: Investing - Theory, News & General
Topic: Is it bad to have Many Bank Accounts?
Replies: 41
Views: 6214

Re: Is it bad to have Many Bank Accounts?

I would imagine you credit score would be dinged because of all the credit reports pulled. What about all the time and effort you spend opening and closing accounts, would it be worth it?

I chose simplicity. I have been with my bank for years, there are 3 branches within 2 miles of my home and work. I may not be the best rate out there, but the familiarity and comfort with the bank outweighs that.
by bucksfan2
Tue Jan 21, 2014 12:34 pm
Forum: Personal Investments
Topic: POLL: Pay down 3.5% mortgage or invest in taxable?
Replies: 102
Views: 22348

Re: POLL: Pay down 3.5% mortgage or invest in taxable?

My wife and I started out with a 30 year mortgage @5.5%. Over the course of a couple of years we refinanced it down to 4.75% over 10 years. Over the course of a couple of years I had paid down the mortgage, added one extra payment a year, and got my mortgage down considerably. My grandma passed and left me a nice chunk of change and we decided that to honor my grandma (who always talked about living rent free) we would pay off the rest of the mortgage. It was a great feeling knowing that our monthly mortgage payment would be gone for as long as we wished. Over the next couple of months it felt that our "cash" was a little tight but that eased considerably. I have found it is a personal decision. A 3.5% mortgage may look pretty goo...
by bucksfan2
Wed Jan 15, 2014 3:10 pm
Forum: Investing - Theory, News & General
Topic: Does it really make sense to max out tax-deferred?
Replies: 40
Views: 7578

Re: Does it really make sense to max out tax-deferred?

There is of course balance. For some of us, maxing out a $5500/year IRA and $17500/year in 401ks, and maybe even loading up on $10k in savings bonds, would leave just a few crisp dollars a year to live on, or perhaps much less . So obviously maxing those accounts isn't always feasible. It's that "use it or lose it" feature of the tax advantages that's the motivation. Isn't this the main question? To me this gets to the biggest issue I have with the bogglehead mantra. I am young, 31, much younger than many people who post on here. I max out both my and my wife's Roth. In the past I had contributed just enough to take full advantage of the company match in my 401K, however I have recently upped that number and probably will continu...
by bucksfan2
Mon Jan 13, 2014 3:42 pm
Forum: Investing - Theory, News & General
Topic: Do you invest in a taxable account?
Replies: 111
Views: 19045

Re: Do you invest in a taxable account?

I feel that it's only prudent for me to invest in a taxable account. I'm only 27, so money that I put away toward retirement is effectively inaccessible to me for the next 30 years (yes, yes, "Roth IRA contributions can be withdrawn!" .... whatever.) I do max my Roth IRA every year, but don't come close to maxing my TSP. In fact, my goal at this point is simply to half-max my TSP (which I haven't yet managed to do). Sure, I could max it out, but I prefer to manage my savings by allocating them toward short-/mid-/long-term goals. Retirement = long-term ... buying houses & paying for education = mid-term ... vacations & replacement cars = short term. Maxing my TSP would throw those plans out the window entirely, and sacrifi...
by bucksfan2
Mon Dec 30, 2013 12:56 pm
Forum: Investing - Theory, News & General
Topic: Being taxed in taxable account.
Replies: 41
Views: 3046

Re: Being taxed in taxable account.

Funds like VTSMX will pay about 2% of their value in dividends divided quarterly over the course of the year. Normally they will deposit the money in a cash account at your brokerage. You could choose to reinvest automatically. I don't recommend that in a taxable account because it complicates things. So for $30,000 you can expect about $600, or $150 quarterly. The tax on that will depend on how long you held the stock and you income tax bracket. If you have held it > 60 days and your bracket is 25% you will pay a 15% rate or $90. If you have held it less than 60 days you pay ordinary tax rates on the income. So if you buy it within 60 days of the end of a quarter you may have to pay a bit higher rate on that quarter's distribution. I woul...
by bucksfan2
Thu Dec 26, 2013 1:13 pm
Forum: Investing - Theory, News & General
Topic: Poll: "Bonds are for safety (True or False)".
Replies: 63
Views: 6570

Re: Bonds are for safety (and income)

Vanguard Fund Losses in 2008: -37.02% S&P 500 Index -37.04% Total Stock Market -37.26% Total International -32.05% Small-Cap Value -37.05% REIT -25.57% Dividend Growth -42.87% Precious Metals & Mining -21.29% Hi-Yield Bond Fund -61.57% Emerging Markets Total Bond Market GAINED +5.05% Taylor You are going to greatly skew results by looking at one of the worst years ever in the stock market. Is 2008 indicative of the market overall or a once in a generation scenario. Vanguard Total Stock Market over the past 10 years returned 8.19% Vanguard Total Bond Market over the past 10 years returned 4.58% Over the past decade Bond funds have been much less volatile but equities have returned more, even considering one of the largest declines i...
by bucksfan2
Mon Dec 23, 2013 2:17 pm
Forum: Investing - Theory, News & General
Topic: [Are there any] Billionaire Boglehead!!!
Replies: 49
Views: 6624

Re: Billionaire Boglehead!!!

Are there any Billionaire Bogleheads? ... Based on my calculations, a high earning income individual that is frugal and financially disciplined and sets up a three fund portfolio bolgehead style, they should eventually (1-2 generations) be able to create 1+ billion dollars of wealth for their family. I guess my question is: 1) Has anyone set out to do this? If not why? whats holding them back? lifestyle? goals? etc? Have the boglehead views just not been around that long? 2) Other than transferring wealth once passed and heirs blowing it, what other downfalls can there be with this plan? 3) Ideas, thoughts welcome! Thanks! What is the point? Being worth a billion and living frugally doesn't sound like all that much fun. I would much rather...
by bucksfan2
Fri Dec 20, 2013 3:10 pm
Forum: Investing - Theory, News & General
Topic: Is this legal? [Switching funds to maximize dividends]
Replies: 13
Views: 2720

Re: What happens when a fund pays a dividend.

This could apply to stocks or closed-end funds, but it can't apply to open-end funds, which are valued at their NAV. If a fund has a billion shares and $10.1B of assets, the fund price is $10.10 per share. On the next day, if the market doesn't move but the fund pays a dividend of 10 cents per share, it has just lost $100M of cash, so its shares are now valued at $10 each based on $10B of assets. Taxable stock investors could distort the market because stocks are not valued at their NAV. If you are in a 20% tax bracket, the right to receive a $5 dividend tomorrow is only worth $4, so you would be willing to pay $104 today, not $105, for a stock which you expect to be worth $100 tomorrow after it pays a $5 dividend. The corporation's books ...
by bucksfan2
Tue Nov 05, 2013 11:28 am
Forum: Investing - Theory, News & General
Topic: Shiller Thinks Owning a Home is a Terrible Investment
Replies: 255
Views: 30513

Re: Shiller Thinks Owning a Home is a Terrible Investment

I skimmed most of this article and if it has already been mentioned I apologize. Granted this is a financial site, and I do read quite a bit on financial websites, books, and magazines, but the idea of placing an investment value on everything you buy on a daily basis is getting a little board. I read the Tobias book, The Only Investment You Will Ever Need , and while I thought it provided very good insight on certain matters, the idea that I could save money by buying clippers and cutting my own hair was absurd. The length that some people will go to save a minimal amount of money can get comical. Back to the whole home investment topic. When you break in down it is an investment, probably the largest investment most people will ever make....
by bucksfan2
Tue Sep 10, 2013 1:49 pm
Forum: Investing - Theory, News & General
Topic: Bond fund noise
Replies: 38
Views: 4467

Re: Bond fund noise

Hi MnD, There are two different ways of talking about what one gets from a bond (or bond fund), and it's important not to conflate them. The one you're talking about is called cash flow. The cash flow from a bond stays the same regardless of what happens to its market price. The other one is called yield. Yield takes into account the present market value of the bond. Notice I didn't say principal or face value. Yield is the the cash flow divided by the market value. That's why when a bond fund's net asset value goes down the yield immediately goes up. In fact, saying the net asset value went down is exactly the same as saying the yield went up. They're two sides of the same coin. As an example, consider a five-year $1000 bond paying $50 a ...
by bucksfan2
Wed Aug 14, 2013 1:22 pm
Forum: Investing - Theory, News & General
Topic: Friend likes stock-picking. How to change his mind?
Replies: 33
Views: 3002

Re: Friend likes stock-picking. How to change his mind?

The market prices in what is known about each stock. But what the market has no clue where the stock is headed. You may like a company, like its management, like its industry/sub industry, and its cash flow. Those all may be reasons to invest in an individual stock. If you buy into the boglehead way of thinking your going to have average returns. Nothing is wrong with that, just that there is a potential for improvement. If your average there are going to be people above and below you. To address the opening post, is your friends way of investing wrong? I have found in my short time of investing that I pay attention much more to the market and individual stocks that I own. For a young person that can become invaluable. If you have a plan an...
by bucksfan2
Thu Jun 20, 2013 3:13 pm
Forum: Investing - Theory, News & General
Topic: Is this a good day to buy some more?
Replies: 59
Views: 7116

Re: Is this a good day to buy some more?

Absolutely.

In reality I think this market is going to fall a little further. I think we have entered the summer swoon period that a lot of investors were waiting for. Earning season doesn't come for another couple of weeks so speculation is going to drive the market. Regardless anytime I can add to my position in a stock when it has fallen 5% in two days I try and take advantage of that.