Search found 202 matches

by TO39
Sat Jan 02, 2010 11:29 pm
Forum: Investing - Theory, News & General
Topic: Retirement satisfaction vs net worth
Replies: 54
Views: 11331

bearwolf wrote:
mfen wrote: I wonder how many people in this poll have a pension? If you don't have a pension it would be pretty hard to be satisfied with 1M.
I wonder if the folks in this thread would be able to answer that question? Could you/do you live on $50,000 a year? Of course that assumes 1.25M.

BearWolf
I plan on being happy with 48k. The point mfen brought up was a good one. I should have 17k military pension 16k social security and 15k from investments. I'm worried about SS coming thru 100% so still working. I'm not sure how much extra I should plan on in investments. Should I plan on SS coming through with 80%? I will be 57 in Feb.

When calculating my networth do I include pension/social security?
by TO39
Sat Jan 02, 2010 3:03 pm
Forum: Investing - Theory, News & General
Topic: NYT: Not a lost decade after all
Replies: 86
Views: 10946

Nisiprius wrote: The argument isn't about whether retirement savers should have part of their portfolio in stocks. It's about the last decade, the one you call "the worst decade in the last 70 or 80 years." Is it fair to call it a "lost decade" for retirement savers?


I would say the period from Oct 2007 to present was a lost 26 monthes for investments, because I started the period with 367K and now have 376k. Where did the money go I invested during this period It was lost. For thew decade there were poor investment returns close to what a money market would have paid but you did not "lose" your investments. I guess you could say you lost an expected risk return. Sounds like semantics no spin.
by TO39
Sat Jan 02, 2010 3:00 pm
Forum: Investing - Theory, News & General
Topic: NYT: Not a lost decade after all
Replies: 86
Views: 10946

sorry
by TO39
Fri Jan 01, 2010 11:31 pm
Forum: Investing - Theory, News & General
Topic: Was it a lost decade for you?
Replies: 58
Views: 8708

I voted I did not like the options. I haven't been invested for 10 years.

The facts are: In Oct of 02 I sold some real estate I had been trying to sell for 12 years. The real estate is hard to put a value on for Jan 2000.
But anyway from Oct 02 to Jan 2010 I went up 244K. 150K was new deposits.

2000 Jan 0K
2002 Sep 18K
2002 Oct 131K
2007 Oct 362K
2008 May 366K
2008 Sep 336K
2009 Mar 228K
2010 Jan 375K
by TO39
Fri Jan 01, 2010 11:03 pm
Forum: Investing - Theory, News & General
Topic: NYT: Not a lost decade after all
Replies: 86
Views: 10946

Also, I wonder how much of the benefit of foreign stocks is simply due to the decline in the dollar's value? What is the point of this comment? That there's some kind of 'trick' to international diversification? That it is normal to have all your eggs in one currency basket? I can't make any sense of this statement. The article's author says it wasn't a lost decade, because an investor in a portfolio of 25% domestic stocks, 25% international stocks, and 50% bonds would have done moderately well. 1) I don't think equal allocations of domestic and foreign stock was a common portfolio in 2000. I don't think it was a portfolio that ordinary prudent investors following mainstream advice would have been holding over the last decade. Index Fan, w...
by TO39
Fri Jan 01, 2010 10:05 pm
Forum: Investing - Theory, News & General
Topic: Allan Roth's....AP Gets the Decade’s Market Return Wrong
Replies: 88
Views: 9276

Quote Working in the financial industry, I have a sore spot for the marketing of stock heavy portfolios. Since most real people are sold financial products with high expenses and high stock allocations, I think all financial articles should blast the industry at least once.[/quote]

Yes, when I first started investing it was with Ed Jones and 100% stocks. The timing of starting at Oct of 2002 helped me, but it was a very interesting ride.
by TO39
Fri Jan 01, 2010 9:48 pm
Forum: Investing - Theory, News & General
Topic: Allan Roth's....AP Gets the Decade’s Market Return Wrong
Replies: 88
Views: 9276

Re: Vanguard's Target Retirement Funds Ranked #1

Yes, van guard should be taken to task for TRDs Personally, I think the appropriate Vanguard's Target Retirement Fund can often be an excellent 1-fund portfolio in a retirement account. Morningstar Report: Vanguard's Target-Date Funds Earn Top Marks You don't think they were too high in equties in 2006 and 2007. I had heard that they were and that they had changed their allocations higher for equities after they had been opened to investors. The operative word is "the appropriate" Target Retirement Fund. We always stress to investors that they ignore the fund's date and look for the TR fund that most closely matches their desired asset allocation. I looked up 2010 and 2015 vanguard TRD. You guys are right I can see these being ap...
by TO39
Fri Jan 01, 2010 9:39 pm
Forum: Investing - Theory, News & General
Topic: Allan Roth's....AP Gets the Decade’s Market Return Wrong
Replies: 88
Views: 9276

to39 wrote: Yes, van guard should be taken to task for TRDs. But, I think the article was a good one espousing asset allocation and diversification. A 25/25/50 portfolio is not cherry picking in my view. I think it is right in the middle of where most investors should be 40/60 to 60/40 with 25 to 50 % of equities in foreign. He was perhaps a little high with international, but overall I think it was a good article. I think plenty of real people have that allocation. I am 60/40 with 50% international. 32/18/50 would have been better perhaps but I don't believe would have changed the numbers much. A better article would have given a chart with the results of the target funds for the past ten years. How would the suggested allocations of the ...
by TO39
Fri Jan 01, 2010 9:19 pm
Forum: Investing - Theory, News & General
Topic: Allan Roth's....AP Gets the Decade’s Market Return Wrong
Replies: 88
Views: 9276

Re: Vanguard's Target Retirement Funds Ranked #1

Taylor Larimore wrote:
Yes, van guard should be taken to task for TRDs
Personally, I think the appropriate Vanguard's Target Retirement Fund can often be an excellent 1-fund portfolio in a retirement account.

Morningstar Report:

Vanguard's Target-Date Funds Earn Top Marks
You don't think they were too high in equties in 2006 and 2007. I had heard that they were and that they had changed their allocations higher for equities after they had been opened to investors.
by TO39
Fri Jan 01, 2010 8:55 pm
Forum: Investing - Theory, News & General
Topic: Allan Roth's....AP Gets the Decade’s Market Return Wrong
Replies: 88
Views: 9276

to39 wrote: I agree that anguard TRD funds need work. Why do you want to blame that on the author. Plenty of people have suggested higher allocations to bonds. Do you have evidence that the author has not? The author makes the point that "real people" invest differently. He states that real people ten years from retirement, plus those in their 30s and 40s invest in a 25/25/50 allocation. He references Vanguard funds and states that Vanguard crunched the numbers for the article. Since he is referencing Vanguard funds, lauds them for crunching his numbers, and suggests that "real people" benefited from a superior 25/25/50 over the past ten years; then he should also take Vanguard and the financial industry to task for poo...
by TO39
Fri Jan 01, 2010 7:51 pm
Forum: Investing - Theory, News & General
Topic: NYT: Not a lost decade after all
Replies: 86
Views: 10946

... I have read posts mentioning spin. I would just like to know where in thr artcle the spin is. I agree with the artcle that most people do not put their investments in one asset class. Perhaps not most people, but you might be surprised at the number of people who put 100% of their 401(k) contributions into the S&P500 index fund offered by their plans. And the 401(k) may be their only investment vehicle. I have had more than one person tell me, "I learned that indexing was the way to go and the S&P500 is the only index fund in my plan, so I invest 100% of my money in it." I might not be surprised, because when I first went into investing, I was 100 % stocks, october of 2003. I was down to 85% stocks in October of 07. N...
by TO39
Fri Jan 01, 2010 7:35 pm
Forum: Investing - Theory, News & General
Topic: NYT: Not a lost decade after all
Replies: 86
Views: 10946

That latter spending-down is what a responsible retiree would have experienced, and in 1999, 50/50 was not considered "aggressive" for a younger retiree. More significantly, a responsible retiree would have needed to spend whatever her SWR was every single year, and people were leaning more toward 4%+ SWRs in 1999. I'm not even sure what "hoarding" investments means, but it's not part of any retirement strategy I've read about. Also, the author picked one of a million reasonable rebalancing strategies. Many rebalancing strategies would have hurt more than they helped. I think hoarding refers to living off pension and SS and not touching investments. I don't know who would advise more than 50 percent to even a young retir...
by TO39
Fri Jan 01, 2010 7:11 pm
Forum: Investing - Theory, News & General
Topic: Allan Roth's....AP Gets the Decade’s Market Return Wrong
Replies: 88
Views: 9276

Here is an artcle by the author linking to sites with good allocation advice.

http://www.nytimes.com/2009/05/16/your- ... money.html
by TO39
Fri Jan 01, 2010 6:56 pm
Forum: Investing - Theory, News & General
Topic: Allan Roth's....AP Gets the Decade’s Market Return Wrong
Replies: 88
Views: 9276

Ny times article by Ron Lieber quote: But if you’re not yet retired, you were probably adding money to your portfolio throughout the decade. Let’s say you started with the same $100,000 and the identical 25/25/50 asset allocation from the previous scenario. Now, imagine that you added $1,000 a month and then rebalanced your account annually so that you began each new year with that original allocation. The result? You ended up with $313,747, or $260,102 in January 2000 dollars. Hardly a lost decade at all. Your own balance may be much different from this. But if you’re moderately affluent, reasonably diligent and began the decade in your 30s or 40s (or were a bit older and got a late start in getting serious about retirement savings), this...
by TO39
Fri Jan 01, 2010 6:48 pm
Forum: Investing - Theory, News & General
Topic: So what's the fuss about gold all of a sudden?
Replies: 27
Views: 4851

I just noticed a new shop in local shopping center called: Gold and Treasures. This could be a sign to sell.
by TO39
Fri Jan 01, 2010 6:42 pm
Forum: Investing - Theory, News & General
Topic: WSJ explains risk to lay public, 1998
Replies: 13
Views: 2116

Rick Ferri,

very good point
by TO39
Fri Jan 01, 2010 6:24 pm
Forum: Investing - Theory, News & General
Topic: WSJ explains risk to lay public, 1998
Replies: 13
Views: 2116

I was surprised that low rated bonds rated as risky as they did.
by TO39
Fri Jan 01, 2010 6:15 pm
Forum: Investing - Theory, News & General
Topic: NYT: Not a lost decade after all
Replies: 86
Views: 10946

But that is not how most real people invest. They don’t pour everything they have into just one type of asset and then add nothing to it for 10 years. Instead, they buy stocks of all sorts, and bonds and perhaps other things, too. And many millions of them dutifully add more money regularly, usually into a retirement account that they won’t touch for longer than a decade. For those people, it was not a lost decade at all. Even those who started with a low six-figure balance could have doubled their total savings in the last 10 years. No, that's not how most people invest. Admittedly, many people don't invest at all; they were only harmed by shrinking salaries and job losses. But many of the rest of investors are retired, and aren't adding ...
by TO39
Fri Jan 01, 2010 5:57 pm
Forum: Investing - Theory, News & General
Topic: NYT: Not a lost decade after all
Replies: 86
Views: 10946

I think lost decade is inaccurate. I think bad decade is more accurate. Semantics, but I read the article twice and still see no spin.
by TO39
Fri Jan 01, 2010 5:42 pm
Forum: Investing - Theory, News & General
Topic: NYT: Not a lost decade after all
Replies: 86
Views: 10946

It was a lousy decade for stocks no matter how they spin it. It was a lousy decade for stocks, and what I want to know is why there is such an imperative to spin it. It almost seems to be an attempt to erase the memory of what common sense, personal experience, and the numbers show. Is it an attempt to influence those who haven't started investing yet? "Oh, Dad, quit going on and on about how bad 2000-2010 was, it wasn't all that bad, you're exaggerating again." How can someone tell us " stock market commentators have been gravely telling us for at least a year" that "we started with something and added just about nothing," then say with a straight face that this is a misconception because it wasn't true for i...
by TO39
Tue Dec 22, 2009 10:36 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Utilities Index Fund
Replies: 28
Views: 7360

Good luck with dividend yield chasing. Let's see how it has worked out so far this year. VPU is up 11% YTD. VT is up 36%. In 2008 VPU was down 33% and VT was down 35%. The 4% dividend yield is going to do you little good. The only reason I see why one would want to own this fund is if one somehow believed that this fund would perform better than the market. In my book that equates to a sector bet - nothing else. Furthermore, if you hold it in a taxable account, what are you going to do if you want to sell it for another sector or total stock market? Or are you betting it will be a better investment for the next 40 years? Why else would you want to hold it? The long-term capital gains tax rate is the sames as the qualified dividend tax rate...
by TO39
Tue Dec 22, 2009 5:44 pm
Forum: Personal Investments
Topic: police and fire fed cu membership?
Replies: 1
Views: 723

Navy Federal Credit Union has the following. any family member of yours fit any of these? Navy Federal's field of membership is determined by the National Credit Union Administration. If you are in any of these categories, you are eligible to join: All Department of Defense (DoD) uniformed personnel—Army, Marine Corps, Navy and Air Force, retirees and annuitants All Department of Defense Reservists—Army, Marine Corps, Navy and Air Force retirees and annuitants All Army and Air National Guard Personnel—civilian employees, retirees and annuitants All DoD Officer Candidate programs: Midshipmen and cadets at the United States Naval Academy, United States Military Academy, United States Air Force Academy, United States Coast Guard Academy and th...
by TO39
Mon Dec 21, 2009 5:57 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Utilities Index Fund
Replies: 28
Views: 7360

SpringMan wrote:For those that pay attention to Morningstar's bear market decile ranking, the bear market decile of the utilities fund is 1, the best. The same is true for VDC, Vanguard's consumer staples ETF. To find the bear market decile, I used the admiral share mutual fund classes of these funds.
Would you know VHT?
by TO39
Mon Dec 21, 2009 5:55 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Utilities Index Fund
Replies: 28
Views: 7360

SpringMan wrote:I own VPU, the ETF utilities fund option. In my opinion, it is not garbage. It pays nice dividends.
Me too, I like it.
by TO39
Sat Dec 19, 2009 7:10 pm
Forum: Investing - Theory, News & General
Topic: How much of a Boglehead are you?
Replies: 51
Views: 7546

camper wrote:
Petrocelli wrote:
I also leave restaurants without swiping sugar packets.
What does that have to do with the OPs question?
I found it somewhat amusing. I think he was poking fun at the frugality of some Bogle followers, which was related to the poll.
by TO39
Sat Dec 19, 2009 6:56 pm
Forum: Personal Investments
Topic: My Bond Holdings
Replies: 19
Views: 3677

Hi, I am not one of the experts, but I would not transfer old 401k to new one until I had a good answer to your question. I think the short term bond fund will work in the short term, till you get an answer.
by TO39
Sat Dec 19, 2009 6:41 pm
Forum: Investing - Theory, News & General
Topic: Updated Modification of Harry Browne Permanent Portfolio
Replies: 3555
Views: 1465603

Thanks, I wasn't aware of that.
by TO39
Sat Dec 19, 2009 6:39 pm
Forum: Investing - Theory, News & General
Topic: Individual Bond Holders: Have you ever had a default?
Replies: 13
Views: 2315

quote: If you own the bonds with CUSIP 819215PB4 they are rated A+ by S&P. Did you buy them at par? If so you're sitting on a nice capital gain, you might want to cash that in at the lower tax rate. Capital gains on bonds are taxed at 15% while interest is taxed at your normal tax rate. As I'm sure you're away bonds drift to par at maturity, so over the next 15 years that gain will disappear. A 15% gain is nothing to sneeze at in the bond world.

I may have missed something but in this case isn't the interest only taxed at the state level, and maybe not that depending on state of residence.
by TO39
Sat Dec 19, 2009 5:55 pm
Forum: Investing - Theory, News & General
Topic: Updated Modification of Harry Browne Permanent Portfolio
Replies: 3555
Views: 1465603

I believe (at least I am hopeful) that the disciplined SMA timing model and rebalancing will help me "stay the course" with this strategy in an non-emotional manner That's where a method such as Robert Lichello's AIM really works well as you're much more likely to rebalance in an emotionless/mechanical like manner. I truly believe that there are benefits to be achieved from rebalancing and failing to correctly rebalance misses those additional benefits. With AIM you can pre-calculate next trade size and price levels and leave limit orders with your broker. A further advantage is that any gapping (price cutting up above a target sell price or down below a target purchase price) works in your favour (yes, I'm UK based). It's nice w...
by TO39
Sat Dec 19, 2009 5:54 pm
Forum: Investing - Theory, News & General
Topic: Updated Modification of Harry Browne Permanent Portfolio
Replies: 3555
Views: 1465603

Sorry double post.
by TO39
Fri Dec 11, 2009 10:20 pm
Forum: Personal Investments
Topic: request for thoughts on portfolio
Replies: 10
Views: 1981

DBR and Laura, thanks for the replies. I will read and think about your suggestions. I think Laura questioned if Roth was commission free. Roth and taxable are commision free but have $290 yearly fee. I was thinking of a 60/40 stock/bond ratio. I could hold TIP in 401k but would incur $19.95 transaction fee, which I now have with VEU and VAW.
by TO39
Fri Dec 11, 2009 5:30 pm
Forum: Personal Investments
Topic: request for thoughts on portfolio
Replies: 10
Views: 1981

Thank You Chris for the reply, I think the Munis could possibly supply diversification at this point, but anyways I plan on retiring soon and it might be best to wait till then capital gains wise, and then change the short munis for I bonds and long munis for maybe mortage backed securities. I think MBB is 35 % ginnie Mae and could work. This is one of the suggestions I was hoping for. Also I do like the idea of the mirror image portfolios, at least in theory.

Any suggestions for replacing munis? Ibonds, MBB, TBM, others?
by TO39
Fri Dec 11, 2009 5:01 pm
Forum: Personal Investments
Topic: request for thoughts on portfolio
Replies: 10
Views: 1981

request for thoughts on portfolio

Single, 57 year old, Male, 25% fed bracket, 8%? Maryland bracket, $341,000 total portfolio not including $10k cash and $12K in saved up vacation time, motgage $102,000 6% 23 more years, currently earning $78,000 from job, may retire in next one to two years, may try for part time sooner and work longer, I maxed out 401k this year and now am putting in after tax dollars to recive match, 10% of 401k is after tax dollars $17,128 military pension, $16,380 social security if I retire today according to statement I received today, Could comfortably live on $48,000 pre tax if taxes were less than $6,000. Roth 35K at Folio fn 10.% % Total % Acct. Ticker Fund (ER) 2.5 % 25% SHY short treasury (.15) 2.5% 25% IEF longer treasury (.15) 1% 10% TIP inlat...
by TO39
Fri Dec 11, 2009 4:33 pm
Forum: Investing - Theory, News & General
Topic: TIP ETF versus Vanguard TIPS Fund
Replies: 13
Views: 2489

I think I should post this on the other forum, so thanks for your input and I welcome any more ideas.
by TO39
Fri Dec 11, 2009 3:03 pm
Forum: Investing - Theory, News & General
Topic: TIP ETF versus Vanguard TIPS Fund
Replies: 13
Views: 2489

Thank you for your reply. The reason I ask is more complicated. I own TIP in a ROTH IRA at FOLIO fn and plan on using rebalencing bands, so the Vanguard fund is not easily used. However the new ETF class of the vanguard fund does look promising, and I think I might swap in near future if new ETF is approved. I would welcome your and others comments on my ROTH account. This my idea of a Harry Brown/ Larry Swedrow mix. Vanguard already has possible replacements for SHY and IEF. In the future I may want to change IEF to TLT. 25% SHY 25% IEF 10% TIP 8% VNQ 8% VAW 8% VBR 8% VWO 8% VSS Tough to critique your portfolio without knowing about any other account types you may have. Still, 8 holdings seems a bit much, SHY and IEF are very similar (yea...
by TO39
Fri Dec 11, 2009 2:24 pm
Forum: Investing - Theory, News & General
Topic: TIP ETF versus Vanguard TIPS Fund
Replies: 13
Views: 2489

Quote Close call, but I'd probably lean toward the Vanguard fund so you don't have to deal with the premium/discount issue, and all else being equal I'd rather be with Vanguard than BlackRock. - DDB Thank you for your reply. The reason I ask is more complicated. I own TIP in a ROTH IRA at FOLIO fn and plan on using rebalencing bands, so the Vanguard fund is not easily used. However the new ETF class of the vanguard fund does look promising, and I think I might swap in near future if new ETF is approved. I would welcome your and others comments on my ROTH account. This my idea of a Harry Brown/ Larry Swedrow mix. Vanguard already has possible replacements for SHY and IEF. In the future I may want to change IEF to TLT. 25% SHY 25% IEF 10% TIP...
by TO39
Fri Dec 11, 2009 1:29 pm
Forum: Investing - Theory, News & General
Topic: TIP ETF versus Vanguard TIPS Fund
Replies: 13
Views: 2489

Okay, congratulation to Leon, I own Tip but would not qualified for admiral status. Do you think Tip would compare closely to VIPSX? Or would active mangement still give the advantage to the open end fund?
by TO39
Fri Dec 11, 2009 11:38 am
Forum: Investing - Theory, News & General
Topic: TIP ETF versus Vanguard TIPS Fund
Replies: 13
Views: 2489

Re: TIP ETF versus Vanguard TIPS Fund

Code: Select all

                     TIP       VAIPX
Expense Ratio       .20%       .12%
Total AUM           $18B        $26B (for all share classes)
Index Fund?         Yes         No
Weighted Maturity   8.81y       8.8y
Weighted Duration   4.64        3.6*
This only shows the info for admiral class shares. The regular shares expense ratio is listed at .25% if you follow the link you provided. I would think if you don't have admiral status, there is not much difference between ETF and open end fund.
by TO39
Sun Nov 15, 2009 9:07 pm
Forum: Investing - Theory, News & General
Topic: "Cash-strapped Americans raiding their 401(k)s"
Replies: 23
Views: 5396

Let's look at some simplistic scenarios: 1. Your 401k is invested in an intermediate-term bond fund making 4%. You can borrow from your 401k at 4%. You can borrow commercially at 4%. In this case it makes no difference whether you borrow from your 401k or commercially. Either way your 401k grows by 4% and you pay 4% interest on your loan. 2. Same thing but with 4%, 6%, 6%. Now you should borrow from your 401k, because you pay 6% interest either way, but if you borrow from your 401k you accumulate more in the 401k. 3. Same thing but 4%, 4%, 6%. You should still borrow from your 401k, but for a different reason: you'll save money on the outside vs. the commercial loan. No difference in 401k growth. 4. Same thing but 6%, 4%, 4%. You should bo...
by TO39
Sun Nov 15, 2009 6:22 pm
Forum: Investing - Theory, News & General
Topic: "Cash-strapped Americans raiding their 401(k)s"
Replies: 23
Views: 5396

So what I understand from all of this thread is the only reason to take a loan from your 401K would be if for some reason you could only get a loan commercially, that was at a higher percentage rate than provided in the 401 k. Any idea how high the difference would have to be.

Hopefully I didn't misunderstand any thing.
by TO39
Sun Nov 15, 2009 5:47 pm
Forum: Investing - Theory, News & General
Topic: "Cash-strapped Americans raiding their 401(k)s"
Replies: 23
Views: 5396

[ All this does not seem to be worth the trouble of sneaking an extra $1,000 into the TSP.

Victoria[/quote]

My understanding is after pre tax contributions are fully taken, you can put post tax contributions into 401k up to around 44k total contributions, and take them out later tax free.
by TO39
Sun Nov 15, 2009 3:55 pm
Forum: Investing - Theory, News & General
Topic: "Cash-strapped Americans raiding their 401(k)s"
Replies: 23
Views: 5396

TO39 wrote:
TO39 wrote:quote Essentially, this means that if you choose to borrow commercially rather than from your 401k, you’re borrowing money to invest in stocks, which in my mind is always a bad idea for individual investors.

I just boght a car with a commercial loan at 3.5% at Navy Federal Credit Union. I could have borrowed from my 401k, but i think/hope my 401k is going to do better than 3.5 %. I am 56/44 stock bond ratio.
I should have added my 401k loan would have been at 4.25%.
If anybody is curious the loan was for 14,000.00. Commercially I have 36 payments of $410, for a total of interest $768. If I had gone with the 401K, I would have have 78 payments every two weeks of $192.01 for total interest and $50 fee of $976.80.
by TO39
Sun Nov 15, 2009 3:35 pm
Forum: Investing - Theory, News & General
Topic: "Cash-strapped Americans raiding their 401(k)s"
Replies: 23
Views: 5396

TO39 wrote:quote Essentially, this means that if you choose to borrow commercially rather than from your 401k, you’re borrowing money to invest in stocks, which in my mind is always a bad idea for individual investors.

I just boght a car with a commercial loan at 3.5% at Navy Federal Credit Union. I could have borrowed from my 401k, but i think/hope my 401k is going to do better than 3.5 %. I am 56/44 stock bond ratio.
I should have added my 401k loan would have been at 4.25%.
by TO39
Sun Nov 15, 2009 3:27 pm
Forum: Investing - Theory, News & General
Topic: "Cash-strapped Americans raiding their 401(k)s"
Replies: 23
Views: 5396

quote Essentially, this means that if you choose to borrow commercially rather than from your 401k, you’re borrowing money to invest in stocks, which in my mind is always a bad idea for individual investors.

I just boght a car with a commercial loan at 3.5% at Navy Federal Credit Union. I could have borrowed from my 401k, but i think/hope my 401k is going to do better than 3.5 %. I am 56/44 stock bond ratio.
by TO39
Sat Sep 05, 2009 2:16 pm
Forum: Investing - Theory, News & General
Topic: Passive Investing Continues to Gain Momentum
Replies: 13
Views: 2566

Thanks for the reply. I read the link but not sure if I completely believe, But I am starting to have a more bogle head appoach to my investing. I was over 85 percent active. now down to 28 and heading lower. Thanks for your and others time in helping my investments.
by TO39
Sat Sep 05, 2009 2:06 pm
Forum: Investing - Theory, News & General
Topic: Going Solo with My Portfolio
Replies: 27
Views: 5283

I've been transferring from Ed Jones to folio fn over four years. Due to tax and variable annuity reasons I am keeping some at EJ. I sold all that had a loss earlier this year except for VA. I am only 56 now. Ed Jones was 85 % now down to 28%. most in a VA. The rest in funds that don't transfer to foliofn. When I retire in next couple of years they will be first that i take monies from. All my new contributions are to 401 k at work and IRAs. I use index funds for 401k and ETFs for IRAs. I really appreciate info I have learned at this sight.
by TO39
Sat Sep 05, 2009 1:50 pm
Forum: Investing - Theory, News & General
Topic: Passive Investing Continues to Gain Momentum
Replies: 13
Views: 2566

Isn't there a chance that at some point active investing will start to beat passive? Say when passive is 80% of total? :?:
by TO39
Mon Mar 17, 2008 12:43 pm
Forum: Investing - Theory, News & General
Topic: ETF discount/premium to NAV
Replies: 6
Views: 1649

google etf connect for discount/premium info
by TO39
Fri Mar 14, 2008 4:57 pm
Forum: Investing - Theory, News & General
Topic: Best Broker/Investment Institution
Replies: 27
Views: 5713

stan1 wrote:
TO39 wrote:I pay yearly ($290 for three accounts). Roth IRA, IRA, and taxable. The IRAs also have a $25 account fee each. I put at least $6,000 in yearly. I have been able to achieve great diversification and cheap rebalancing at a reasonable fee.
Why is Folio Fn better than Zecco or WellsTrade where you would get no-cost trades? How many trades per year are you making?
I don't know how Zecco or WellsTrade work. I was just stating that FOLIOfn works great for me. I make about 200 trades (very small) every month. I like the idea of commission free trading.
by TO39
Fri Mar 14, 2008 10:41 am
Forum: Investing - Theory, News & General
Topic: Best Broker/Investment Institution
Replies: 27
Views: 5713

I pay yearly ($290 for three accounts). Roth IRA, IRA, and taxable. The IRAs also have a $25 account fee each. I put at least $6,000 in yearly. I have been able to achieve great diversification and cheap rebalancing at a reasonable fee.