Search found 191 matches

by Shireman28
Tue Feb 24, 2009 8:09 am
Forum: Personal Investments
Topic: New Investor...ready to take the leap, please advice.
Replies: 18
Views: 3498

Pay off the 9% student loan immediately would be my main advice. It's silly to be paying 9% interest when you have the cash in the bank.

Can you refi your mortgage? I just got a 5% 30 year loan and you are at 6.75%.

Good luck.
by Shireman28
Wed Feb 18, 2009 7:03 pm
Forum: Investing - Theory, News & General
Topic: Investors in 1929 Whole By 1936
Replies: 18
Views: 3150

Lbill said:
The investor in cash on Black Friday in 1929 was made whole the following Monday.
I thought runs on the banks and banks going belly-up was a major contributor and the whole reason for FDIC insurance today. If you were 100% cash in your local bank, it didn't mean you were safe.
by Shireman28
Tue Feb 17, 2009 6:46 am
Forum: Personal Investments
Topic: Porfolio Help Please
Replies: 6
Views: 1921

Ok, 40% US, 20% International, 40% Bonds A small tilt to small and value per Fama/French (Read 4 Pillars of Investing) Her Beneficiary IRA 1.0% Bank CD Her IRA at Vanguard 9.5% Total International Her Rollover IRA at Vanguard 2.7% Small Cap Value Index Her Roth IRA at Vanguard 1.1% Small Cap Value Index His IRA at Vanguard 5.9% Small Cap Value Index His Roth IRA at Vanguard 1.1% Small Cap Value Index His 401(k) at Fidelity (30.1% of total) 24.1% Spartan US Equity Index 6% Spartan Extended Market Index His Defined Contribution Pension Plan at Vanguard (48.6% of total) 38.6% Vanguard Total Bond Market (VBMFX) (0.19) 10% International Value New Contributions: 401k: $17k Spartan US equity index $5K Extended Market Index Pension: $11k Total Bond...
by Shireman28
Mon Feb 16, 2009 11:31 am
Forum: Personal Investments
Topic: Asset allocation and location help requested
Replies: 35
Views: 5470

Well, you'll have to check with your accountant to see how much actual tax breaks you get off your itemized mortgage deduction since you're in the AMT. You may not have a 3% real mortgage rate. Even so, that's comparable to the pre-tax 3.48% long term treasury bond rate.

Also, why have a car loan if Prime Money Market yields 3.5% less than paying off the car? Why have student loans if Prime Money Market yields less than paying off the loans. Why not just get the 5% risk-free and invest the payments you would have made from here on out?

Personally I prefer a less levered lifestyle. There are many roads to Dublin, I guess.
by Shireman28
Mon Feb 16, 2009 7:20 am
Forum: Personal Investments
Topic: Asset allocation and location help requested
Replies: 35
Views: 5470

Are you subject to the AMT?

If so,

1. Pay off car

2. Pay off house

3. Pay off student loans

(4. Reduce emergency fund and add to taxable since your debt level and risk is reduced)

Then:

Joint Taxable - $177,000
29% Vanguard Total Stk Mkt
20% Vanguard FTSE ex US

His Rollover IRA - $55,000
15% Vanguard Total Stock Market

Her Rollover IRA - $125,000
35% Vanguard TIPs

His 401(k) - $12,000
1% Bond Fund
by Shireman28
Mon Feb 16, 2009 6:32 am
Forum: Personal Investments
Topic: Help with Asset Allocation
Replies: 12
Views: 2443

1. Pay off your credit card with taxable. 0% is no excuse to have unsecured consumer debt.

2. Pay off your car loan with taxable.

3. Make sure you build a cash reserve for purchases so you quit using credit cards.

4. Start a fund to begin monthly contributions towards you or your wife's next car so you can pay cash.
by Shireman28
Mon Feb 16, 2009 6:15 am
Forum: Personal Consumer Issues
Topic: Vanguard goes nuclear, crashes
Replies: 60
Views: 11853

Vanguard goes nuclear, crashes

http://news.yahoo.com/s/ap/20090216/ap_ ... _collision

Summary: Nuke subs from the UK and France crash, British one is the HMS Vanguard. Wonder why that name wouldn't be retired with Nelson?
by Shireman28
Thu Feb 12, 2009 8:13 am
Forum: Personal Investments
Topic: 15K Tax Credit done away with?
Replies: 29
Views: 5829

I thought the $7500 was just a zero-interest loan, not a tax credit
by Shireman28
Wed Feb 11, 2009 2:04 pm
Forum: Personal Investments
Topic: Investment help for 25yo couple
Replies: 2
Views: 1133

I'll try 50% US stocks, 30% International, and 20% Bonds Taxable: 19% 19% FTSE Ex-US International His Roth: 22% 11% FTSE Ex-US International 11% Total Stock Market Old 401K now Vanguard IRA: 12% 5% TIPS 7% Total Stock Market His 457B: 15% 15% PIMCO Bond Fund Her 401K: 19% 19% S&P 500 Her Roth: 13% 8% Total Stock Market 5% Extended Market Index 1. Extended market index is the rest of the Total Stock Market fund left behind when you only have an S&P 500 fund. To make SP 500 into Total Stock Market, hold S&P in about roughly a 4 to 1 ratio to Extended Market 2. Your new contributions can go to S&P $16,500, PIMCO Bonds $16,500, and extended market in her Roth and FTSE Ex-Us in your Roth. This should keep you roughly in line in ...
by Shireman28
Wed Feb 11, 2009 1:47 pm
Forum: Personal Investments
Topic: Principal Financial Group 401k: Good, Bad or Ok?
Replies: 6
Views: 4542

I used to have Principal. I got down on my knees and cried tears of joy when we finally switched to Vanguard.

I hate loads!
by Shireman28
Wed Feb 11, 2009 1:44 pm
Forum: Investing - Theory, News & General
Topic: US Economy Nearly Collapsed - Is This Really True?
Replies: 6
Views: 1746

I believe every word members of Congress say.
by Shireman28
Wed Feb 11, 2009 8:27 am
Forum: Personal Investments
Topic: What's in your Plan B
Replies: 35
Views: 7678

I think Adrian is doing plan C, which is sell bonds and add more stocks at this lower level to try to capture more of hypothetical bounce-back.
by Shireman28
Wed Feb 11, 2009 7:38 am
Forum: Investing - Theory, News & General
Topic: PlanB Redux:Let's Reconcile Bogle's Advice!Taylor
Replies: 179
Views: 27116

I just want to say thank you to Taylor, Mel, Laura and the Bogleheads.

I've learned so much from them and the Four Pillars of Investing, Random Walk and Rick Ferri and Larry Swedroe's posts that I feel I've gained a college personal finance degree.

When you get personal attacks and negativity aimed at Taylor like this, I think it's totally unjustified.

When the market was only down a little a year ago, Taylor told me to stick with my 30% in bonds at age 30 even though it looked like a good buying time. He has always been consistent on that theme and I appreciate the money he saved me.
by Shireman28
Wed Feb 11, 2009 6:40 am
Forum: Personal Investments
Topic: Asset location for Intl Value and emerging markets
Replies: 10
Views: 2469

1. What about rebalancing, if EM is the one zigging and zagging all over the place, would it be better in tax deferred where you can adjust it the most annually without genertaing taxable gains? Or is this the flip side of tax-loss harvesting and is a wash?

2. In a slice and dice situation, is EM Index better in taxble for the foreign tax credit than a very tax efficient US fund like Total Stock Market or a tax-managed US equity holding?
by Shireman28
Tue Feb 10, 2009 6:17 pm
Forum: Personal Investments
Topic: Would love some portfolio help
Replies: 14
Views: 2827

As your bonds % outgrow your total 401K contributions down the road, I'd sell the IRA funds and add TIPS to the IRA. Then you can add tilted indexes and keep adding to your core taxable index holdings. But that's a few years off. What a great problem to have someday. Landy's portfolio looks excellent and would work well. I'm 30 and use 30% bonds. But after this big decline, I think 20% bonds is fine, too. International is slightly riskier that US stocks. But with that risk is higher expected long term return from Gordon models like books like Four Pillars of investing and Rick Ferri's 30-year asset class forecast. The PEs are less than the US. There are also currency fluctuations, less strict and regulated/audited accounting, and higher exp...
by Shireman28
Tue Feb 10, 2009 6:56 am
Forum: Personal Investments
Topic: Would love some portfolio help
Replies: 14
Views: 2827

Nightowl:

Here's a simple portfolio.

Taxable: 47%
28% FTSE Ex-US International
21% Total Stock Market

IRA: 22%
22% Total Stock Market

401K: 31%
20% Bond Index
11% Spartan US Equity

You have nice 401K choices in the Bond Index and Spartan Fund. If you want to tilt, I might try something like:

Taxable: 47%
18% FTSE Ex-US International
29% Total Stock Market

IRA: 22%
12% Small Cap Value
10% Emerging Markets

401K: 31%
20% Bond Index
11% Spartan US Equity
by Shireman28
Mon Feb 09, 2009 5:17 pm
Forum: Personal Investments
Topic: Question regarding my portfolio
Replies: 5
Views: 1471

I would be worried about taxes and trading fees using non-index funds in a taxable account. Are you comparing the after tax returns?

Vanguard has some excellent managed funds but I would hate to pay and extra .5 % in expense ratio and then extra taxes on top of that just in the hope of beating the index.

Post your portfolio in Laura's format and we can give it a look-over.
by Shireman28
Mon Feb 09, 2009 5:05 pm
Forum: Personal Investments
Topic: New bogle head starting fresh - AA help?
Replies: 14
Views: 3874

Looks good.

Here's what it'll look like at the end of the year with no losses/gains:

Taxable: $35,200 - 54%
34% Total Stock Market
20% FTSE Ex-US International

Roth: $16,800 - 26%
10% TIPS
5% Small Cap Value
5% REITS
6% Total Stock Market

401K: 12,600 - 20%
10% PIMCO Total Return
10% Spartan US Equity

So set your 401K 50-50 Spartan and PIMCO, set up your Roth and your taxable. You can adjust Total Stock Market/Spartan in each account to keep it in the balance you want.

You even have just over the $3000 Vanguard minimums for the Roth funds.

P.S. - You are doing an excellent job saving at 26, so take a bow!
by Shireman28
Mon Feb 09, 2009 4:42 pm
Forum: Personal Investments
Topic: new investor needs suggestions; Where Do I Begin?
Replies: 12
Views: 1863

Sher,

The Bogleheads Guide is a great place to start.

I am very concerned about your finances in 7 years when the alimony ends.

If your 2 accounts combined are less than $250,000, the FDIC insurance max., how are you going to pay $23,000 in property taxes and $2,300 in condo dues off of 4% of that?

Those CDs are only going to provide $10,000 or less in income. What is your expected sign up date for social security and expected benefit?

You may have to trade down your condo into a property you can afford and start banking big chunks of that 6-figure annual settlement to build a retirement nest egg.

Or you may have to find a second career to supplement whatever savings you have.

Good Luck!
by Shireman28
Mon Feb 09, 2009 6:25 am
Forum: Personal Investments
Topic: need help with 401/Ira allocations
Replies: 4
Views: 1191

Dismel, You couldn't handle the drop. It's okay. You created a complicated portfolio and couldn't make yourself rebalance. It happens. I would personally do this: His IRA @ Vanguard: 70% Target Retirement 2015 Her IRA @ Vanguard: 7% Target Retirement 2015 His 401K @ Vanguard: 8% Target Retirement 2015 (37% Bonds) Her 401 @ JP Morgan: 15% Global Inv. LifePath Fund 2020 (36% Bonds) You need to take a break. Just set this and forget it. Transfer the funds today. Then don't check the statements until the end of the year, don't watch CNBC. Find a fun hobby and go do it. After you max out the 401Ks and IRAs, use any extra money that would be going to taxable to pay down your mortgage. Prime Money Market is fine for emergency funds, as are bank CD...
by Shireman28
Thu Feb 05, 2009 4:12 pm
Forum: Personal Investments
Topic: buying individual corporates
Replies: 12
Views: 2023

I prefer playing craps, myself, if I'm looking to gamble.

Stick to diversified bond funds. Read some Larry Swedroe posts about investing in high-yield bonds and how their risk-adjusted returns are not satisfactory.
by Shireman28
Thu Feb 05, 2009 3:54 pm
Forum: Personal Investments
Topic: Help with retirement Portfolio
Replies: 14
Views: 2570

Why not set up automatic contributions to both of your Roths before he spends the money?

$416 a month to each of your Roths would max them out.

Also, maybe you can sweet talk him into looking at a bond fund in his 401K? He could keep his "aggressive" and add a bond fund on the side?
by Shireman28
Thu Feb 05, 2009 12:51 pm
Forum: Personal Investments
Topic: Help with retirement Portfolio
Replies: 14
Views: 2570

If you can't change his mind, then you'll have to achieve the portfolio yourself. You need to add 14% international and 20% bonds to your side to reach your goals. I'd definitely open a Roth if you can save cash.

His 401K - 60%

54% Oppenheimer crappy high-expense US, tilted small and mid
6% Oppenheiner crappy International

Her 401K - 40%
20% - Bond Fund
9% Oppenheimer Global
5% T. Rowe Price Emerging Markets
6% T. Rowe S&P 500 Fund

Hope that helps.
by Shireman28
Thu Feb 05, 2009 4:44 am
Forum: Personal Investments
Topic: Please Review Portfolio
Replies: 19
Views: 2734

Roth Theory question:

I'm not even close to retirement, just wondering is there any advantage to having bigger Roths in retirement as opposed to IRAs even after paying 33% taxes as you don't have to take mandatory withdrawals and the money can compound longer and give you more control?

Or are the mandatory IRA withdrawls so small annually as to have no effect?

P.S. to the O.P. - I like JGs portfolio a lot and it will be easy to manage. I like International Emerging more than REITS, but I have no justfication past Rick Ferri's 30-year forecast. It's six on one hand, half a dozen on the other. Good Luck!
by Shireman28
Wed Feb 04, 2009 1:00 pm
Forum: Personal Investments
Topic: Please Review Portfolio
Replies: 19
Views: 2734

His and Hers Taxable: 33% 20% Total Stock Market 13% FTSE Ex-Us His 401K: 47% 47% Bond Fund His Tax-Deferred Comp: 9% 9% Small Cap Value His Roth (roll other IRA to Roth to simplify, pay taxes): 2% 2% Vanguard TIPS Her IRA: 8% 8% Emerging Markets Her Inherited IRA: 1% 1% Vanguard TIPS Notes: 1. Find out more about "Bond Fund" and report back. If it's a low cost fund with high quality bonds, you should be fine. 2. Roll his IRA into his Roth, his IRA should only be 10 -20K, just pay the taxes for the simplicity of it. 3. I've tilted this portfolio towards small and emerging, if you want index weighting just change her IRA and his deferred comp to FTSE and Total Stock Market respectively. 4. It would be helpful to know where and how ...
by Shireman28
Wed Feb 04, 2009 12:46 pm
Forum: Personal Investments
Topic: Extremely new portfolio planning for present and future
Replies: 4
Views: 1507

I would open an account with T. Rowe Price and set up automatic monthly contributions into the Roth in the same retirement account. Work towards maxing it out for the next 2-3 years. Also, continue with a retirement fund in your main 401K account.

In a couple years, after you've built up about $5,000 in the Roth, roll it to Vanguard and invest it there. Then you can re-allocate it and the 401K to a more ideal lower expense setup.

But saving rate is the key now, not fund selection. Do all you can to max out your Roth and at least get your matches in the 401K.

Great start!
by Shireman28
Mon Feb 02, 2009 2:38 pm
Forum: Personal Investments
Topic: Finding the right financial adviser
Replies: 12
Views: 2483

Look in the mirror.
by Shireman28
Mon Feb 02, 2009 10:31 am
Forum: Personal Investments
Topic: If you had to recommend just one good book...
Replies: 25
Views: 6603

Four Pillars
Random Walk
by Shireman28
Mon Feb 02, 2009 9:19 am
Forum: Personal Finance (Not Investing)
Topic: Approach to asking about buying a house?
Replies: 11
Views: 2356

A couple rules of thumb:

1. The house value is between 50-100x your monthly rent to your landlord. I would offer in the lower end of that range.

2. I would look at similar houses, see what the MLS asking price is, and offer the landlord 70% of the market price minus the costs of repairs.

You are in a market flooded with foreclosures. Some experts believe only 1/4 of the foreclosures have hit the market yet. Other further housing bailouts may prolong the downturn. Don't overpay in a falling market.
by Shireman28
Sun Feb 01, 2009 5:05 pm
Forum: Investing - Theory, News & General
Topic: Simple IRA Set-Up For Small Business
Replies: 13
Views: 3420

Our family business has our SIMPLE IRA through Vanguard.

They charge nothing to the business and $25 per fund annually for each employee (which is great if you use target/balanced funds).

It's very easy to set up online. You'd be doing a huge favor to avoid load funds for your employees.
by Shireman28
Thu Jan 29, 2009 8:43 am
Forum: Personal Investments
Topic: SAHM needs advice
Replies: 7
Views: 2291

I picked 2020 because it is 30% Bonds, using the your-age-in-bonds rule of thumb. If you prefer less, that's fine too.

I'd just change your whole allocation into the Freedom fund now. In a 401K, there aren't tax implications or transaction fees so it doesn't hurt you to just go ahead and do it.
by Shireman28
Thu Jan 29, 2009 8:35 am
Forum: Personal Investments
Topic: Your thoughts on my AA please
Replies: 8
Views: 1936

Need the expense ratios.

Does your wife have access to a 403B?

Why only 10% Bonds?

Do you get a match in the 401K?

How much to you plan to contribute overall this year?
by Shireman28
Wed Jan 28, 2009 7:41 am
Forum: Personal Investments
Topic: Portfolio Review - bond allocation?
Replies: 28
Views: 5017

Audrey, If you posted your exact portfolio with each of the tax deferred account in Laura's format with your 401K choices, we might be able to help simply your portfolio based on the choices you have. Have you been able to figure out how much alpha you made last year over the comparison portfolio, if you included 9% Bonds in it for fairness? Then divided that by the # of hours you've spent obsessing over it, looking for better funds, researching on Morningstar, and discussing it with your significant other? Wouldn't it be better to just set an investment plan for the next 20 years, rebalance once a year, and pick a new hobby? I'm glad you've picked winning actively managed funds. Of course, in the long run index funds will outperform 80% of...
by Shireman28
Tue Jan 27, 2009 9:33 am
Forum: Personal Investments
Topic: Portfolio Review - bond allocation?
Replies: 28
Views: 5017

Audrey,

Have you looked into tax loss harvesting? It could help you feel better about adding more bonds at a low point.

I also like JGs idea of putting all new money into bond funds as you build towards a bigger bond allocation.

Also be sure to check to make sure some of the older fund holdings won't nail you with a big capital gains tax bill if you decide to move taxable money around.
by Shireman28
Mon Jan 26, 2009 1:19 pm
Forum: Personal Investments
Topic: Portfolio Review - bond allocation?
Replies: 28
Views: 5017

Here's a slice and dice idea:


Taxable Account 40%
20% FTSE Ex-US International
20% Total Stock Market


Pre-Tax IRAs and 401Ks = 60%

15% Vanguard TIPS
15% Vanguard Total Bond Market
10% Total Stock Market
10% Small Cap Value
5% Emerging Markets Index
5% International Small Cap


It reduces the funds required quite a bit. Could add REITs if you really want to, pretty sure small cap value is loaded with them.
by Shireman28
Mon Jan 26, 2009 9:40 am
Forum: Personal Consumer Issues
Topic: What's your favorite gaming platform and game?
Replies: 89
Views: 18402

My main obsession was Civ 4 for like the past year.

Some of my all-time favorites are XCom, the Zelda series and Tecmo Super Bowl.
by Shireman28
Mon Jan 26, 2009 9:32 am
Forum: Personal Finance (Not Investing)
Topic: Am I crazy to buy a house now?
Replies: 16
Views: 3692

How long do you plan to stay in this new home?

I am making stock investments although they could fall further because I plan to hold for decades.

I imagine your real estate situation could be the same.
by Shireman28
Mon Jan 26, 2009 8:37 am
Forum: Personal Investments
Topic: SAHM needs advice
Replies: 7
Views: 2291

Looks like you're doing well.

I would check and see if you really need 10K in a 401K to invest in Fidelity's Spartan fund.

To start, I'd do this:

Roth IRA @ Vanguard:
Star Fund

His 401K
Freedom Retirement 2020

After you save up to $3,000 in the Roth, and the Spartan fund minimum, I'd change it to this:

Vanguard Roth IRA:
Total International Fund

401K
Spartan Equity Index
Fidelity Intermediate Bond Fund

Then just keep contributing to these three funds in the ratio called for in your investment plan.
by Shireman28
Mon Jan 26, 2009 7:22 am
Forum: Personal Investments
Topic: Newlyweds who need some investment advice
Replies: 15
Views: 2946

New,

JG has you taken care of. You are off to a great start.

I think you should work to transfer the taxable money into your 401K or her 403B by living on that taxable money and saving your salaries for 2-3 months.

If you both make the sacrifice now and contribute 5% each to your 401Ks, you won't really notice the difference and that $5,000 extra could compound for the next 30 years at 5% real into ~$350,000 in today's dollars. I bet you won't hate yourself for it in 30 years.

Post your 401K/403B options. I currently use TR 2020 and it's a good fund. You may have to use other funds due to the best options in your other plans.

Good luck!
by Shireman28
Mon Jan 26, 2009 6:52 am
Forum: Personal Finance (Not Investing)
Topic: Is never having a credit card an option?
Replies: 46
Views: 7402

OP, there is no reason to have a credit card.

Get a debit card from your local bank.

My debit card is also attached to Mastercard. The online transactions run through the Mastercard system, with all the built-in transactions protections. You could also buy ID theft insurance if you are as paranoid as some of these posters.

Save up a down payment for your house. When you're ready to buy, just go to the locally-owned bank you bank at (not a big chain) and have them do manual underwriting on you. They can look and see the money in your acccounts.
by Shireman28
Fri Jan 23, 2009 1:27 pm
Forum: Personal Investments
Topic: Portfolio review please? :-)
Replies: 14
Views: 2448

SIMPLE IRAs are supposed to be for less than 30 employees or something, maybe you don't have a SIMPLE if you work for a huge corp.?
by Shireman28
Fri Jan 23, 2009 12:08 pm
Forum: Personal Investments
Topic: Portfolio review please? :-)
Replies: 14
Views: 2448

If it was me and I'd been there 2 years per the rules, I'd dump the new funds into the lowest class-A rip-off money market account.

Then I'd roll the $12,000 every year to a Vanguard traditional IRA. If your eligible for a Roth, then I'd convert that traditional IRA to the Roth and set $3,000 out of taxable aside to pay the income taxes now due on the trad to Roth conversion.

It would be like being about to contribute $17,000 annually to the Roth. How sweet would that be.

It sounds like a lot of work, but it would take maybe 30 minutes of time per transaction online at Vanguard's site, and Vanguard would handle it all.

But, I'm not a tax pro and I could have this all messed up somehow.
by Shireman28
Fri Jan 23, 2009 11:46 am
Forum: Personal Investments
Topic: Portfolio review please? :-)
Replies: 14
Views: 2448

Here's a thread about what I was talking about:

http://www.bogleheads.org/forum/viewtop ... a+rollover

Also, I have convinced our company to switch to a Vanguard SIMPLE IRA. It costs the company nothing. I get charged an annual fee of $25 per fund used.

If you are a valued employee, they can open a SIMPLE just for you at Vanguard and send your contributions there and keep the old crappy plan some buddy gave them for everyone else. They'd just send off 2 monthly checks instead of one.
by Shireman28
Fri Jan 23, 2009 11:25 am
Forum: Personal Investments
Topic: Portfolio review please? :-)
Replies: 14
Views: 2448

Wheat thin,

I am not a tax expert, but I believe you can roll your funds out of the SIMPLE into a trad. ira if you have been contributing for 2 years.

There's probably some scheme where you could dump the ongoing SIMPLE money into a low-expense MM fund or something and then clean out the account to a Vanguard IRA every year or two. Check with your tax guy.

http://www.irs.gov/retirement/article/0 ... 20,00.html
by Shireman28
Fri Jan 23, 2009 11:12 am
Forum: Personal Finance (Not Investing)
Topic: Time to change banks? Tanking stock value is concerning
Replies: 10
Views: 1941

I would further diversify away from gold and silver into guns, ammo, and underground bunkers. Be sure to stock your bunker with canned goods and water.

Perhaps a milk cow could be a good speculative play.
by Shireman28
Thu Jan 22, 2009 1:46 pm
Forum: Personal Investments
Topic: A humble request for guidance - a newbie's portfolio.
Replies: 6
Views: 1719

I'll take a shot: I would just contribute to 401Ks to get your matches until I paid off the credit card. You can crank the 401K contributions up later to make up for it. General comments: In your 401K, you are contributing to the SP500 fund, which is cheapest. Good plan. Wow, her 401K is awesome. Even though you want to be ultra-agressive, there is a rebalancing bonus for holding some bonds. I'd try in the range of 15% to 30%. You say 7% international. Vanguard holds at least 20% of equity in International in their Target Retirement funds, reduces risk according to a bunch of professors. I'd recommend more as the US only is 40% of the World's stock market. Sell the individual taxable stocks and pay on your cc debt. Can the rollover IRA be m...
by Shireman28
Thu Jan 22, 2009 10:14 am
Forum: Personal Consumer Issues
Topic: Mother doesn't save for retirement like she should
Replies: 56
Views: 8388

Dave Ramsey has a class, 13-weeks, called Financial Peace University. You could buy it for her if you can get her turned on to his show on the radio or TV.

She won't feel as bad about her situation if she listens to some of the other callers.
by Shireman28
Thu Jan 22, 2009 9:56 am
Forum: Personal Consumer Issues
Topic: Building a house
Replies: 25
Views: 4734

The OP came across as having a mentality that the whole industry is out to screw him and charge him extra. That is not true. Despite a recession, materials still cost the same to dig them out of the earth and make them in a finished product. Lumber still has to be cut and trucked from Canada or the west. Subcontractors still have to eat and pay for trucks, cell phones, tools, etc. These contractors might be cutting their profit margins 5%-10% to keep busy, but the dead costs are still the same. The sad fact is most homes are now re-selling for less than the cost of the materials, labor, and land to build the homes. One risk in this environment is desperate general contractors who will want to lowball a bid and then get change orders to get ...
by Shireman28
Thu Jan 22, 2009 9:40 am
Forum: Personal Investments
Topic: Retirment Investing Advice
Replies: 33
Views: 5259

Jim, his twin brother, a Boglehead, put his money into Vanguard index funds. His account value is down to $600,000. If he tries to take $50,000/year out for the rest of his life, he'll probably run out of money.
Um, Target Retirement Income lost 10.93% percent last year, perhaps the second worst year ever in the market. I reject your example in total. In your example, the account value would decline from $1M to $890,000.
by Shireman28
Thu Jan 22, 2009 9:06 am
Forum: Personal Investments
Topic: Asset Allocation Change - 26 yr. old
Replies: 17
Views: 3003

Here's a couple thoughts from an anonymus guy on the internet: 1. I'd roll the Roth to Vanguard, which has lower expense ratios on the majority of its funds. 2. The U.S. is only 40% of the global stock market. You have 83% of equity allocated to the U.S. I would think this is too big of a bet on our economy vs. every other country in the world. Personally, I'd think at least 40%+ in international would be a better bet. However, we'll only know in hindsight. 3. Six percent in bonds is almost the same as no bonds. You're not going to get the rebalancing bonus from so few bonds. I'd recommend at least 15-26% depending on your risk tolerance. 4. Why not post all the funds available in your 401k? Search for Laura's format and post your portfolio...