Search found 2063 matches

by ResNullius
Thu Feb 14, 2013 4:02 pm
Forum: Personal Investments
Topic: Investing for end-of-life healthcare?
Replies: 25
Views: 3391

Re: Investing for end-of-life healthcare?

My wife and I self-insure, and we're very comfortable with this. As for whether this changes our investment strategy or portfolio mix, the answer would be no. We currently have a 60% fixed portfolio, with thought of possibly nudging the fixed portion down to 55%. Other than maintaining a conservative portfolio, which also has some growth opportunities, we have done nothing else. Absent an economic collapse, the money should be there if we need it down the road. If we don't need it, then our son will inherit that much more.
by ResNullius
Thu Feb 14, 2013 2:02 pm
Forum: Personal Finance (Not Investing)
Topic: When should my wife's SS payment come?
Replies: 9
Views: 1414

Re: When should my wife's SS payment come?

I get mine the second Wednesday of each month, as in I got my February payment yesterday.
by ResNullius
Wed Feb 13, 2013 11:59 am
Forum: Investing - Theory, News & General
Topic: Any Research On This?
Replies: 29
Views: 1951

Re: Any Research On This?

BBL wrote:
ResNullius wrote:
BBL wrote:Back to the issue at hand. This paper includes the constant percentage formula among others. Maybe this is helpful:

http://corporate.morningstar.com/ib/doc ... folios.pdf
Thanks for the site. It was very helpful.
Sorry about that quasi thread derail. I know I have more papers on that topic. I'll see what I can dig up.
I think the articles, both the ones you attached and the others, just about cover the point, including the error in my thinking. Thanks again.
by ResNullius
Wed Feb 13, 2013 11:25 am
Forum: Investing - Theory, News & General
Topic: Any Research On This?
Replies: 29
Views: 1951

Re: Any Research On This?

CyberBob wrote:Check out the wiki article Withdrawal Methods and William Bernstein's excellent article The Retirement Calculator from Hell Part I, Part II, Part III, Part IV, Part V (part I is especially applicable to the original question).

Bob
This too was very helpful. Thanks.
by ResNullius
Wed Feb 13, 2013 11:15 am
Forum: Investing - Theory, News & General
Topic: Any Research On This?
Replies: 29
Views: 1951

Re: Any Research On This?

BBL wrote:Back to the issue at hand. This paper includes the constant percentage formula among others. Maybe this is helpful:

http://corporate.morningstar.com/ib/doc ... folios.pdf
Thanks for the site. It was very helpful.
by ResNullius
Wed Feb 13, 2013 9:53 am
Forum: Investing - Theory, News & General
Topic: Any Research On This?
Replies: 29
Views: 1951

Re: Any Research On This?

So in 2007 you pulled 40K based on port value of 1M. In 2008 your port is now .7M you pull 28K. See how that might be a problem? Mathematically you can pull 4% forever but your spending power in real dollars could shrink with a bad sequence of events. If you are even close [small margin of error] when you start your risk of alpo gets uncomfortably high. You're missing my point. I'm not asking about dog food, but real data. Has anyone seen any studies that look at this issue? As for the 2008 example, the portfolio would have come back quite a bit within 12 months, then more over the following years. For many folks on this Board, they didn't retire with just thread separating them from steak and dog food, so relatively minor annual correctio...
by ResNullius
Wed Feb 13, 2013 9:41 am
Forum: Investing - Theory, News & General
Topic: Any Research On This?
Replies: 29
Views: 1951

Re: Any Research On This?

BBL wrote:
Why? Each year the portfolio would increase in value
What portfolio are we talking about here?
Any portfolio. It doesn't matter as long as you compare apples to apples.
by ResNullius
Wed Feb 13, 2013 9:39 am
Forum: Investing - Theory, News & General
Topic: Any Research On This?
Replies: 29
Views: 1951

Re: Any Research On This?

Everyone argues and debates the SWR and the so-called 4% rule, which allows for you to increase your withdrawal each year by the rate of inflation. There's a lot of back-testing of data on the 4% rule, but I've been wondering if anyone has looked closely at alternative 4% rule, which would simply have you withdraw 4% of whatever the beginning balance is each year. Is the so-called survival rate better or worse for the 4% each year alternative? Just wondering. Your port will last forever but your standard of living may leave something to be desired.... Why? Each year the portfolio would increase in value by the total return on whatever asset allocation is being used. Bottom line: Some years it would go up, some years down, some years stay t...
by ResNullius
Wed Feb 13, 2013 9:34 am
Forum: Investing - Theory, News & General
Topic: Any Research On This?
Replies: 29
Views: 1951

Any Research On This?

Everyone argues and debates the SWR and the so-called 4% rule, which allows for you to increase your withdrawal each year by the rate of inflation. There's a lot of back-testing of data on the 4% rule, but I've been wondering if anyone has looked closely at alternative 4% rule, which would simply have you withdraw 4% of whatever the beginning balance is each year. Is the so-called survival rate better or worse for the 4% each year alternative? Just wondering.
by ResNullius
Tue Feb 12, 2013 3:22 pm
Forum: Personal Investments
Topic: 'Won the Game' but is this portfolio too conservative?
Replies: 30
Views: 5974

Re: 'Won the Game' but is this portfolio too conservative?

No offense intended, but I can see no reason at all for having so many funds. I would cut it down to 3 and not more than 5 funds, and I would keep them all with the same company for ease of paperwork. I know you've already decided to "slice and dice," but I think that's a needless and counterproductive investment strategy. Just my two cents. Good luck.
by ResNullius
Tue Feb 12, 2013 9:20 am
Forum: Investing - Theory, News & General
Topic: Is 3% the new safe withdrawal rate for retirees?
Replies: 101
Views: 10455

Re: Is 3% the new safe withdrawal rate for retirees?

I love all these SWR discussions. Why do folks try to make something that's reaonsably simple into something that is so complex that nobody can understand it? Reason? Because it drives folks crazy with worry so they'll beg "financial advisors" to take huge fees in return for making them feel safe and secure. By the time retirees realize that they've been taken for a ride, they'll be too old and demented to care.
by ResNullius
Mon Feb 11, 2013 4:35 pm
Forum: Investing - Theory, News & General
Topic: NY Times: Vanguard: "never go public"
Replies: 40
Views: 6075

Re: NY Times: Vanguard: "never go public"

Like Vanguard as it is, and I think Vanguard operates with the interest of it's clients being at least as important as the interests of senior management. I hate to say it, though, greed is a powerful force, and whether Vanguard's management can hold in the face of greed is yet to be known.
by ResNullius
Mon Feb 11, 2013 9:26 am
Forum: Personal Investments
Topic: Bond allocation – VBMFX, VFIIX, VCSH, or ???
Replies: 11
Views: 2952

Re: Bond allocation – VBMFX, VFIIX, VCSH, or ???

I'm fully retired, with a fixed allocation of around 60%. My fixed is divided between short and intermediate investment grade, and also some GNMA. I think this is a good conservative bond fund allocation, but I doubt I'll every fully understand bonds like I think I understand equities.
by ResNullius
Sun Feb 10, 2013 3:33 pm
Forum: Investing - Theory, News & General
Topic: Bonds and Bond Funds are now considered Risky Investments?
Replies: 40
Views: 5004

Re: Bonds and Bond Funds are now considered Risky Investment

OK, I'll confess: I'm in the "bonds for safety" group. Yes, I like the income component, but "safety" is my primary reason for investing in bond funds. So long as they can at least stay even with inflation, I can survive with that, although I would prefer some real gain. So, what is someone like me suppose to do with their fixed asset allocation?
by ResNullius
Sun Feb 10, 2013 11:24 am
Forum: Investing - Theory, News & General
Topic: What %age short/intermediate bonds do you hold now?
Replies: 26
Views: 2525

Re: What %age short/intermediate bonds do you hold now?

I'm around 60% fixed allocation, with it roughly divided between intermediate (40%) and short (40%) investment grade, and also GNMA (20%). I also have around 4 years of living expenses (over and above SS) in MM.
by ResNullius
Sat Feb 09, 2013 9:58 am
Forum: Investing - Theory, News & General
Topic: Pimco critique of passive investing
Replies: 48
Views: 5936

Re: Pimco critique of passive investing

afan wrote:I love how the active guys love analogies ("straightjacket"), but never, ever, EVER want to talk about data. The data in favor of indexing is so overwhelming that those selling active services know the only thing to do is change the subject.
Yeah, it sort of like trying to convince a Northwestern Mutual Life salesman that term life insurance is better than whole life. A snake oil salesman rarely tells anyone what's actually in his little bottles.
by ResNullius
Sat Feb 09, 2013 8:56 am
Forum: Personal Finance (Not Investing)
Topic: Running out of money
Replies: 51
Views: 11982

Re: Running out of money

"For me, it is living on income streams--pension, ss, interest, dividends and the like; without have to touch principal of my "nest egg." " If you don't need to touch your principal, then you have more than you need. Yes, that is a true statement. The OP question was about being "confident" about not running out of money and for me, living without touching my investment principal gives me the confidence that I won't run out of money. I know it doesn't guarantee that I won't run out of money due to extreme medical issues, but I can't live my life worrying about every worst possible scenario. I just live retirement on a plan that gives me the confidence that I, or my spouse, won't run out of money for a majority...
by ResNullius
Sat Feb 09, 2013 8:18 am
Forum: Investing - Theory, News & General
Topic: Stocks are at a 5 year high, now what?
Replies: 55
Views: 9463

Re: Stocks are at a 5 year high, now what?

bertilak wrote:Now what?

Root for a 10 year high!
Which will take us back to where things stood 10 years ago, meaning zero gain over 10 years. The way I see it, we need to recover everything lost since March 2000, then add at least the rate of inflation to come up with a truly new high...or even with 10 years ago. We then need to start growing at 6 to 8% from there at an annual rate, at a minimum, then folks can talk about whether the market is getting too high.
by ResNullius
Fri Feb 08, 2013 3:40 pm
Forum: Personal Investments
Topic: What to do? Never had money to worry about before.
Replies: 15
Views: 5081

Re: What to do? Never had money to worry about before.

Sorry for your loss. Regarding the possibility of buying a house in Florida, I would not do that. You are way too far away from the time when you might move, and circumstances could easily change between now and then. In addition to the cost of the house, you'll have the cost of the various types of insurance you would need in the middle of a hurricane zone. Add in utilities and upkeep, plus fees to the rental agent, and you'll likely be close to negative on cash flow, plus you'll be out the investment return you could have gotten by investing the money in stocks, bonds, or mutual funds. I would keep it simple, very simple, then let time be the healer of all things.
by ResNullius
Fri Feb 08, 2013 12:38 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes: Preparer versus Software
Replies: 16
Views: 1519

Re: Taxes: Preparer versus Software

I don't know for sure, but I would bet that 99.99% of tax preparers use software to prepare your tax returns, virtually identical to what can be purchased in any computer store or office supply store. By the way, I pay a CPA $250 to do out state and federal returns, and I know he uses a professional version of TurboTax.
by ResNullius
Fri Feb 08, 2013 12:22 pm
Forum: Personal Investments
Topic: Looking for slice an' dice portfolio feedback
Replies: 19
Views: 2384

Re: Looking for slice an' dice portfolio feedback

I think slicing and dicing is one truly dumb way to manage your portfolio, but that's just my opinion. Good luck.
by ResNullius
Thu Feb 07, 2013 9:19 am
Forum: Personal Investments
Topic: Can I retire comfortably?
Replies: 61
Views: 9491

Re: Can I retire comfortably?

You most certainly should be able to retire now and live comfortably for the rest of your life. Is there a 100% guarantee for this? No! Many things could happen, but most of those things would have the same or greater impact even if you continued to work in your business. A major financial collapse usually means a major collapse in the overall economy, as we saw in 2008-2009, but life usually returns in a few years or so. You'll have to invest your $4M in a reasonably diversified portfolio. Absent a major collapse, this should take care of you and your family for life, plus leave a nice inheritance for the kids. It's really up to you. If you have the slightest doubt, I would continue working, but you'll still live with the risk that your bu...
by ResNullius
Thu Feb 07, 2013 7:52 am
Forum: Investing - Theory, News & General
Topic: silver investing - floor?
Replies: 26
Views: 4801

Re: silver investing - floor?

Remember the Hunt brothers?
by ResNullius
Thu Feb 07, 2013 7:51 am
Forum: Personal Investments
Topic: Advisor says I have TOO MUCH CASH!!!!
Replies: 38
Views: 4488

Re: Advisor says I have TOO MUCH CASH!!!!

HopeRetNow wrote:Do you hold that short term bond fund in a taxable account?
I'm 60% fixed assets in our overall portfolio. All of our IRAs are in Vanguard bond funds, but we still needed to have some bond fund money in our taxable account in order to reach out 60% fixed allocation, and that includes short and intermediate investment grade, plus some GNMA. I'm fully retired. Our marginal tax rate is 25%, but our effective tax rate is 15%, so it really doesn't matter much that some of our bond money is our taxable account.
by ResNullius
Thu Feb 07, 2013 7:35 am
Forum: Personal Investments
Topic: Advisor says I have TOO MUCH CASH!!!!
Replies: 38
Views: 4488

Re: Advisor says I have TOO MUCH CASH!!!!

10% in cash isn't too much, at least not enough to focus on in the context of your overall portfolio. Many pundits say you should have more. I have about 5% in MM, but a much higher amount in a short-term bond fund, which I consider to be "near cash." Good luck.
by ResNullius
Wed Feb 06, 2013 4:21 pm
Forum: Investing - Theory, News & General
Topic: Anybody purposely loading up on mortgage debt?
Replies: 107
Views: 14429

Re: Anybody purposely loading up on mortgage debt?

Why would anybody prefer to be in debt? All my adult life, I have worked to avoid debt. The only time I've ever gone into debt was to purchase a house, then I paid it off as quickly as possible. Debt is a curse, and don't let anyone convince you otherwise. If you have no other means to live, then debt is something to consider, but otherwise....
by ResNullius
Wed Feb 06, 2013 2:34 pm
Forum: Investing - Theory, News & General
Topic: Ferri on Current Stocks
Replies: 16
Views: 2617

Re: Ferri on Current Stocks

Yes, but I always recommend owning some stock based on your needs. Given today's "financial repression" marketplace, stocks are probably needed by most people who are seeking to retire in a comfortable lifestyle. If you're trying to live off fixed income, Uncle Ben has not been a good friend while Mr. Market may help you out more. Yes, but isn't the stock market always more likely to help folks retire in a more comfortable lifestyle, albeit with more risk thank dull old bond funds? I have about two-thirds of our portfolio in Vanguard bonds funds (short and intermediate investment grade, and GNMA). I recently added GNMA in order to get a little diversification into government insured. I would love to have more in equities, particu...
by ResNullius
Wed Feb 06, 2013 10:38 am
Forum: Investing - Theory, News & General
Topic: Severe Collapse In Bonds--Bank of America
Replies: 23
Views: 3415

Re: Severe Collapse In Bonds--Bank of America

The 10-year yield stood at 3.75 just 2 years ago in February 2011. Did you notice "a game changer" by the 1.73 drop to 2.02? I'm not convinced that a 1.73 increase back to 3.75 will mean anything such as "severe collapse in Bonds" as in the subject of this thread (or similar). Yes. We have become so accustomed to these rates that we've forgotten recent history. On October 4, 2010, the 10-year yield was 2.38%. I'm sure everyone was screaming that rates couldn't go any lower. Less than four months later, on January 31, 2011, the yield had "soared" to 3.65%. Panic time? I don't recall any massive movement away from bonds. Vanguard Intermediate-Term Treasury lost 5% in NAV. Wouldn't higher rates make some people f...
by ResNullius
Tue Feb 05, 2013 5:15 pm
Forum: Investing - Theory, News & General
Topic: Severe Collapse In Bonds--Bank of America
Replies: 23
Views: 3415

Re: Severe Collapse In Bonds--Bank of America

http://www.cnbc.com/id/100436329

This is perfectly appropriate. A different BOA financial analyst is calling for a return of the bull market in bonds, all in the same day as a different analyst from BOA is suggesting the end of the world for bonds. You got to love it.
by ResNullius
Tue Feb 05, 2013 2:15 pm
Forum: Investing - Theory, News & General
Topic: Severe Collapse In Bonds--Bank of America
Replies: 23
Views: 3415

Severe Collapse In Bonds--Bank of America

http://www.cnbc.com/id/100435607

I read this and wondered what the folks around here think about it. Bank of America's analyst is predicting a severe and disorderly collapse of the investment grade bond market. I'm not sure whether it even passes the common sense test, since most people invest in bonds for either a counterbalance to equities or for income. Anyway, any thoughts?
by ResNullius
Mon Feb 04, 2013 12:38 pm
Forum: Investing - Theory, News & General
Topic: Will Bill Gross be wrong three times in a row?
Replies: 39
Views: 4734

Re: Will Bill Gross be wrong three times in a row?

Rick Ferri wrote:Larry,

Bill Gross will get a "big call" right eventually through randomness allow, and of course, when that happens the media will not get enough of him.

Rick Ferri
I remember when CNBC had Ken Hebner on the show all the time to predict and pundit on just about everything. His record in the beginning was great, but it slowly got worse and worse over time, until now you never hear from the guy anymore. I'm sure he's richer than sin, but nobody seems to want him on their financial shows anymore. Bill Gross is becomming this way. Of course, Gross is really rich, so I guess he can buy the network so he'll always have a spot on the show.
by ResNullius
Mon Feb 04, 2013 9:24 am
Forum: Investing - Theory, News & General
Topic: Just changed my AA
Replies: 18
Views: 1629

Re: Just changed my AA

I was 70% equities at the start of the 2008-2009 crash. When equities lost close to 50% over a relatively short period of time, I realized that I wasn't interested in taking that level of risk. I was around 58-59 at the time. I fortunately didn't sell when the market was at the bottom, but after the market came back about 50% from the bottom, I started to slowly sell equities and move money into fixed until my asset allocation reached about 65% fixed. Over the past couple of years, I slowly moved the fixed allocation down to 60%, since that's where I wanted to be. My goal was to insure that we could maintain our lifestyle even if the equity side of our portfolio took another 50% drop that stayed down for many years (think Japan), and 60% fi...
by ResNullius
Sun Feb 03, 2013 12:41 pm
Forum: Personal Finance (Not Investing)
Topic: 25% Amica Homeowners Premium Increase
Replies: 28
Views: 6842

Re: 25% Amica Homeowners Premium Increase

I sent it the 2013 premium several weeks ago, and I noticed that it had gone up a couple hundred bucks, but I didn't analyze it. I like Amica, so it is what it is.
by ResNullius
Sun Feb 03, 2013 9:32 am
Forum: Investing - Theory, News & General
Topic: A question for retirees/pre-retirees
Replies: 25
Views: 2184

Re: A question for retirees/pre-retirees

I've got about 4 years of cash in my MM account, enough to cover expense over and above SS. I spend it down to about 2 years, then replinish, at least that's the plan. This is probably more than I should put in the cash account, but that's what I've been doing.
by ResNullius
Sun Feb 03, 2013 8:50 am
Forum: Personal Finance (Not Investing)
Topic: What's a better term for 'retired'?
Replies: 97
Views: 12206

Re: What's a better term for 'retired'?

I have no problem saying that I'm retired. On the other hand, my wife can't stand it when anyone suggests that she's semi-retired. She works three mornings a week, that's it. She doesn't need to work, she likes for people to think she's working heavy part-time. I don't understand it, but she'll be fully retired in a year or two whether she wants to or not. Other than saying retired, I sometimes tell people that I'm a "rcovering lawyer." They usually catch the humor.
by ResNullius
Sun Feb 03, 2013 8:29 am
Forum: Personal Finance (Not Investing)
Topic: Charitable donation from RMD
Replies: 45
Views: 4188

Re: Charitable donation from RMD

BL wrote:
gkaplan wrote:If I understand this correctly, if I made such a charitable donation from my entire RMD, I would not have pay taxes on the RMD. I assume then that I could not take a charity deduction on my Schedule B, is that correct?
Correct, that is if you mean Schedule A.
But does it count towards your AGI, which determines your marginal tax rate. Same for MAGI, which determines your Medicare Part B premium.
by ResNullius
Sat Feb 02, 2013 8:50 am
Forum: Personal Investments
Topic: The High Cost Of Index Funds (for me)
Replies: 20
Views: 3688

Re: The High Cost Of Index Funds (for me)

As others have said, I think it's important to keep your cap gain tax rate (and dividends too) at the 15% or lower, even if it means taking a few years to totally complete the move. If you have questions about taxes, you might want to consult a tax person for advice. $700K in cap gains suggests a fairly large portfolio. It's worth getting it into index funds, but it's also worth paying close attention to taxes along the way. Good luck.
by ResNullius
Fri Feb 01, 2013 7:01 pm
Forum: Personal Investments
Topic: Two Comma Club
Replies: 200
Views: 48374

Re: Two Comma Club

livesoft wrote:There's another Two Comma Club. How many of y'all have lost a Two Comma amount in the stock market?
I lost two commas on paper during the 2008-2009 crash, but I didn't sell, and I've recouped all of the losses, plus a nice additional amount. Buy and hold is the way to go.
by ResNullius
Fri Feb 01, 2013 11:02 am
Forum: Investing - Theory, News & General
Topic: College Endowments show Weak Returns
Replies: 10
Views: 1073

Re: College Endowments show Weak Returns

DaleMaley wrote:But if you just bought index funds, then no hedge fund guys to wine and dine you :D
Don't laugh, but that's exactly what happens. The investment group within the college gets taken to meetings (with family) to really nice vacation spots in order to discuss investment strategy for a week or so, fully paid for by the hedge fund or investment advisor. There's real money to be made ripping off large pools of money, so don't be surprised by anything.
by ResNullius
Fri Feb 01, 2013 9:18 am
Forum: Personal Investments
Topic: annuities vs. bond fund or other for nursing home resident
Replies: 22
Views: 2707

Re: annuities vs. bond fund or other for nursing home reside

You mentioned that you had siblings, meaning more than one brother/sister. Given your mother's condition and the specific nature of your dad's wishes prior to his death, I would be very reluctant to change anything. If you make a change that turns out to be less than wonderful down the road, you could have serious problems within your family vis-a-vis funding your mom's care and inheritance among the adult children. I would be very, very careful not to ignite a family falling out.
by ResNullius
Thu Jan 31, 2013 4:42 pm
Forum: Investing - Theory, News & General
Topic: How should retirees make withdrawals?
Replies: 18
Views: 2556

Re: How should retirees make withdrawals?

I wanted to harvest the dividends and keep the number of shares invested to grow future dividends as long as possible. I will sell the funds, though, to maintain the bond/MM funds from which I take my distributions at an approximate 3 year future withdrawal needs (my market volatility safety net.). Would not dividends re-invested also 'grow future dividends'....I guess what I am asking is why just re-invest the capital gains and not the dividends? Myself, I plan on taking both captial gains and dividends to spend without having to sell shares to live off. This raises a question that I have thought about often. In retirement, is it better to have a large amount in cash/MM to draw down over a period of say 3 years, while leaving distribution...
by ResNullius
Thu Jan 31, 2013 3:54 pm
Forum: Investing - Theory, News & General
Topic: Merriman - Retirees should be in Low-Risk Investment
Replies: 43
Views: 5224

Re: Merriman - Retirees should be in Low-Risk Investment

We will measure the ending wealth of all 5 portfolios on December 31st, 2012 after a 13 year period where we began with $1M and took 4%, 5%, or 6% of the starting value adjusted for 3% per year inflation. $40K (4%) Withdrawals 100% Equity = $1.63M 80% Aggressive = $1.57M 60% Balanced = $1.45M 40% Moderate = $1.29M 20% Conservative = $1.07M $50K (5%) Withdrawals 100% Equity = $1.37M 80% Aggressive = $1.32M 60% Balanced = $1.21M 40% Moderate = $1.07M 20% Conservative = $868K $60K (6%) Withdrawals 100% Equity = $1.12M 80% Aggressive = $1.07M 60% Balanced = $979K 40% Moderate = $845K 20% Conservative =$664 ======================================= I'm not sure I understand how this could be so, given that the time period involved (2000 to 2012) s...
by ResNullius
Thu Jan 31, 2013 2:31 pm
Forum: Personal Investments
Topic: How to split retirement funds.
Replies: 14
Views: 2102

Re: How to split retirement funds.

Don't believe a word that salesman (financial advisor) says. Run and run fast to get away from him. Invest the money yourself in Vanguard. Three funds would be more than enough, and two would do just fine. Almost anything would be better than going with the financial advisor, who is nothing more than a glorified thief. Good luck.
by ResNullius
Thu Jan 31, 2013 9:36 am
Forum: Personal Finance (Not Investing)
Topic: pay income taxes from sale of old lawnmower
Replies: 8
Views: 1604

Re: pay income taxes from sale of old lawnmower

Does this mean that I can send the IRS an old lawnmower and call us even.
by ResNullius
Wed Jan 30, 2013 5:36 pm
Forum: Investing - Theory, News & General
Topic: Free Book!
Replies: 20
Views: 4659

Re: Free Book!

It does not matter if an advisor has no skill in choosing superior investments, what’s important is to convince the public that they have special insight.
==========
Snake oil salesman. The name changes, but the substance (or lack thereof) remains the same.
by ResNullius
Tue Jan 29, 2013 11:49 am
Forum: Investing - Theory, News & General
Topic: Change from Full Service Advisor To Passive Management?
Replies: 14
Views: 1782

Re: Change from Full Service Advisor To Passive Management?

Dump the advisor. Move your money into Vanguard. If you don't know enough yet on what funds to invest in, then read and ask questions. You're paying way too much for your so-called advisor, who almost certainly has been getting a portion of the expense ratios and commissions in addition to his 1% AUM fee. Oh, and by the way, most financial advisors probably know a lot less than you currently know about investing. They get their info from cheat sheets handed out each week from the home office.
by ResNullius
Tue Jan 29, 2013 10:55 am
Forum: Investing - Theory, News & General
Topic: Adjusting Strategy when you hit your # early
Replies: 38
Views: 3576

Re: Adjusting Strategy when you hit your # early

Some folks are just plain greedy. I have five relatives who are wealthy - two are what one might say are extremely wealthy - they refuse to buy fixed income. They made their money with business equity and to this day will continue to sink their cash flow into public equities. Bonds are anthema to them. I don't blame them - it is just what they are comfortable with even though they won the game long long ago. I know a number of formerly wealthy folks between 65 and 75 who had between 60% and 100% of their retirement portfolio in Bank of America stock or Wachovia stock back in late 2008 and early 2009. They lived a very favored standard of living off of the dividends from what they considered to be gold plated companies, the same companies t...
by ResNullius
Tue Jan 29, 2013 7:29 am
Forum: Investing - Theory, News & General
Topic: Adjusting Strategy when you hit your # early
Replies: 38
Views: 3576

Re: Adjusting Strategy when you hit your # early

What I did was to hunker down into a more conservative portfolio. Not all bond funds, mind you, but I significantly raised my fixed asset allocation. I watched any number of folks lose their financial security after or near retiring due to the last crash (2008-2009). They sold at or near the bottom, and they've stayed in cash or short-term bonds ever since. In short, they missed a 100% upswing in the equity market, thus locking in the huge loss they had suffered on paper during the crash. These folks are not happy campers. I only hope my wife and I never learn what it felt like for them. Good luck to us all.
by ResNullius
Mon Jan 28, 2013 8:29 am
Forum: Personal Finance (Not Investing)
Topic: Credit card swipe fees start Sunday 1/27
Replies: 121
Views: 18362

Re: Credit card swipe fees start Sunday 1/27

Another way to look at this. Consider the fact that prior to Sunday every business, large or small, had already factored in the transaction costs of accepting credit cards as a part of their overhead. If these same business now add a charge, they now would be charging customers twice for the same thing. Business should first drop their prices, then they could raise them back in order to avoid charging the customer twice. I'll be looking to the signage and notices, and I'll never return to a place that imposes these additional charges. I doubt seriously that many businesses will attempt to impose these new charges.