Search found 1225 matches

by Abe
Sat May 28, 2016 11:46 am
Forum: Investing - Theory, News & General
Topic: Can I just let my money compound now?
Replies: 51
Views: 5642

Re: Can I just let my money compound now?

To the OP. We can make all kinds of assumptions and plug in all kinds of numbers, but ultimately the answer we have to settle on is we don't know. If it were me, to be on the safe side, I would not depend solely on current savings. I would continue to save some each year and going forward you may be...
by Abe
Sat May 28, 2016 11:02 am
Forum: Investing - Help with Personal Investments
Topic: Reading advice
Replies: 17
Views: 652

Re: Reading advice

Jonathan Clements Money Guide 2016
by Abe
Thu May 26, 2016 9:26 am
Forum: Investing - Theory, News & General
Topic: Can I just let my money compound now?
Replies: 51
Views: 5642

Re: Can I just let my money compound now?

So...I'm 25 with a little over 100k saved and in a target fund. Is it safe to say that I could potentially not save another dime and be in decent shape in 30 years? Not saying I'm going to do this, just curious. Let's assume that you're going to earn 5% annually and inflation runs at 2% annually. I...
by Abe
Wed May 25, 2016 4:54 pm
Forum: Investing - Theory, News & General
Topic: safe alternative to stock market
Replies: 61
Views: 5714

Re: safe alternative to stock market

You can buy owner financed mortgages at discount, but you need to know what you are doing. If you buy it right you can always sell it to cash out if you need money. Edited to add: On second thought, I don't think buying discounted mortgages is a viable option for most people, especially most Boglehe...
by Abe
Wed May 25, 2016 1:47 pm
Forum: Personal Finance (Not Investing)
Topic: How to handle real estate commission if I bring the buyer to table?
Replies: 3
Views: 514

Re: How to handle real estate commission if I bring the buyer to table?

An exclusive listing contract requires the seller to pay a commission regardless of who sells, but everything is negotiable. You could put a clause in the contract that seller is not required to pay a commission if he sells property himself. Or you could sell it to the co-worker, prior to listing th...
by Abe
Wed May 25, 2016 1:28 pm
Forum: Investing - Theory, News & General
Topic: Can I just let my money compound now?
Replies: 51
Views: 5642

Re: Can I just let my money compound now?

You can play with compounding with any scientific calculator (including your iPhone) with the y^x function. Lets pick a return - say 6% per year (after 1 year, you will have 1.06 for each dollar). Lets look at 30 years. So enter 1.06 [y^x] 30, result is 5.74 So after 30 years, at a 6% return, you w...
by Abe
Mon May 23, 2016 4:15 pm
Forum: Investing - Help with Personal Investments
Topic: When to sell Berkshire?
Replies: 24
Views: 2548

Re: When to sell Berkshire?

I have 2 vehicles insured with Geico. Premium around $922 per year. How much discount would I get if I bought one B share?
by Abe
Mon May 23, 2016 4:08 pm
Forum: Investing - Theory, News & General
Topic: What was your first investment?
Replies: 98
Views: 3220

Re: What was your first investment?

It's been a long time, but I believe my first investment was a bank savings account paying 5.25%. I believe I put in $5000, but it could have been less. Wish I could get 5.25% now. :(
by Abe
Fri May 20, 2016 5:04 pm
Forum: Investing - Theory, News & General
Topic: Is there a such thing as a blue collar Boglehead?
Replies: 149
Views: 11768

Re: Is there a such thing as a blue collar Boglehead?

I find this question to be some what surprising.I have never thought of the Bogleheads forum as being mostly white collar.To me,Bogleheads are those who are trying to learn and seek advice in sound investing over the long term . You asked to hear from blue collar Bogleheads,I am one. Only 2 yrs. of...
by Abe
Fri May 20, 2016 12:58 pm
Forum: Investing - Theory, News & General
Topic: Is there a such thing as a blue collar Boglehead?
Replies: 149
Views: 11768

Re: Is there a such thing as a blue collar Boglehead?

I don't know if I would be classified as blue-collar since I never worked for a salary, but my life was probably very different than most Bogleheads. I attended college but because of a learning disability, I dropped out my second year. I just never had enough time to do the work required. My father...
by Abe
Wed May 18, 2016 2:48 pm
Forum: Personal Consumer Issues
Topic: When is cash better than plastic?
Replies: 74
Views: 6606

Re: When is cash better than plastic?

After an earthquake or any other situation when there is temporarily no electricity. Back in the day we used to process credit cards with those clunky gadgets with the sliding thingy that you'd put the carbon slips in. Don't know what they're actually called. I used to just call them "ca-chunk...
by Abe
Wed May 18, 2016 10:53 am
Forum: Personal Consumer Issues
Topic: When is cash better than plastic?
Replies: 74
Views: 6606

Re: When is cash better than plastic?

A fellow wanted to buy an old advertising sign from me. On my desk, he put down five $100 bills all spread out. It was very tempting.
by Abe
Wed May 18, 2016 10:14 am
Forum: Investing - Help with Personal Investments
Topic: My silly math skills
Replies: 25
Views: 1890

Re: My silly math skills

After reading the previous post I decided I had to revisit my arithmetic and must now, in the interests of honesty, confess that my first calculation was a tiny bit off. It seems that my L fund actually grew by 37% over the 9.5 years! For whatever that is worth... I had not seen this tspfolio.com w...
by Abe
Wed May 18, 2016 10:04 am
Forum: Investing - Help with Personal Investments
Topic: My silly math skills
Replies: 25
Views: 1890

Re: My silly math skills

Using my Texas Instrument BAll Plus Financial Calculator enter as follows: N=9.5 years, PV=$1.00 FV=$1.27 compute for I/Y=2.55% annual growth rate Real simple. I've heard of calculators. Didn't they go out with the dial phone (you may have heard of those, Ma Bell used to lease it to their customers...
by Abe
Tue May 17, 2016 3:42 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with old mutual funds?
Replies: 7
Views: 501

Re: What to do with old mutual funds?

Since the American Funds are all in IRA's, there is no tax consequence to selling them. As others have said, the front end load is a sunk cost, so there is no reason why you shouldn't sell them and put the money someplace else.
by Abe
Tue May 17, 2016 2:59 pm
Forum: Investing - Help with Personal Investments
Topic: My silly math skills
Replies: 25
Views: 1890

Re: My silly math skills

Using my Texas Instrument BAll Plus Financial Calculator enter as follows: N=9.5 years, PV=$1.00 FV=$1.27 compute for I/Y=2.55% annual growth rate
Real simple.
by Abe
Fri May 13, 2016 4:56 pm
Forum: Investing - Theory, News & General
Topic: Carl Icahn Is Betting Big on a Stock Market Crash
Replies: 32
Views: 7099

Re: Carl Icahn Is Betting Big on a Stock Market Crash

I'm new to stock investing, but I find the current news incredibly unnerving. Frequent articles claiming that the market is valued disproportionately to earnings coupled with people like Bogle saying that future returns are likely to be far lower than historical returns makes me wonder whether I'm ...
by Abe
Fri May 13, 2016 12:52 pm
Forum: Investing - Help with Personal Investments
Topic: Did I just mess up?
Replies: 11
Views: 1615

Re: Did I just mess up?

livesoft wrote:If stocks went up continually in a sloped line and never dropped, then everyone would ALWAYS be buying at an all-time high. It is totally expected that one will buy at all time peaks most of the time. It doesn't matter most of the time.


I like this way of looking at it.
by Abe
Thu May 12, 2016 4:11 pm
Forum: Personal Finance (Not Investing)
Topic: What was your hardest retirement transition?
Replies: 61
Views: 8864

Re: What was your hardest retirement transition?

I'm 72 years old. With the exception of rental properties, I can't bring myself to spend any money that I've invested over the years, not even the interest. The rental properties, mortgages I hold and Social Security produce more than enough for my wife and I to live on. I also have a very small bus...
by Abe
Thu May 12, 2016 11:46 am
Forum: Investing - Theory, News & General
Topic: S&P 500 Total Return
Replies: 9
Views: 2701

Re: S&P 500 Total Return

Simplegift wrote:If you want a calculator that will give you S&P 500 total returns (with dividends reinvested), from any starting month to any ending month, both nominal and real, you can find one at this site:

S&P 500 Returns Calculator


I use this also.
by Abe
Wed May 11, 2016 3:19 pm
Forum: Personal Finance (Not Investing)
Topic: Is investing only about sound, monetary decisions?
Replies: 16
Views: 1615

Re: Is investing only about sound, monetary decisions?

A big part of investing is psychological. There are factors that are unique to the each individual. That's why it's hard to use one size fits all investing rules. We all have to find our niche, what's comfortable for us. I think we're all striving for financial security, but we each have to get ther...
by Abe
Wed May 11, 2016 2:37 pm
Forum: Personal Finance (Not Investing)
Topic: Can someone explain to me how Term life is a better choice than WLI.
Replies: 69
Views: 5765

Re: Can someone explain to me how Term life is a better choice than WLI.

My experience with insurance companies is that once they get my money, it never turns out the way I was told it would by the agent. Somewhere deep in the fine print there is always something that gives them the right to chisel away at my money.
by Abe
Wed May 11, 2016 2:24 pm
Forum: Personal Finance (Not Investing)
Topic: Can someone explain to me how Term life is a better choice than WLI.
Replies: 69
Views: 5765

Re: Can someone explain to me how Term life is a better choice than WLI.

Term Life insurance pays only if you die. It does not build up a cash value. Whole Life basically is term insurance plus it builds up a cash value. Term insurance is cheaper than Whole Life. Most people would be better off getting Term Insurance to protect their family and investing the difference. ...
by Abe
Wed May 11, 2016 1:36 pm
Forum: Investing - Theory, News & General
Topic: 09-9-2011 Jack Bogle video (Why Marc Cuban is wrong on investing)
Replies: 9
Views: 1759

Re: 09-9-2011 Jack Bogle video (Why Marc Cuban is wrong on investing)

However, Cubans style is very dangerous for most people. The problem sometimes with very successful people is that they struggle to realize that most people don't see the world as they do. Concentration, some market-timing, etc. may work great for Cuban or Buffett or Klarman or Druckenmiller...but ...
by Abe
Wed May 11, 2016 1:21 pm
Forum: Investing - Theory, News & General
Topic: 09-9-2011 Jack Bogle video (Why Marc Cuban is wrong on investing)
Replies: 9
Views: 1759

Re: 09-9-2011 Jack Bogle video (Why Marc Cuban is wrong on investing)

I thought it was interesting that even Mr. Bogle is sometimes tempted to take the wrong path when he said, "I thought a couple of years ago I might try a little gold." But then he said, "Maybe I shouldn't get carried away with that foolishness."
by Abe
Sun May 08, 2016 3:26 pm
Forum: Personal Finance (Not Investing)
Topic: The crossover point [When can you retire?]
Replies: 59
Views: 9689

Re: The crossover point

What is the difference in the Crossover Point and Critical Mass? I seems to me that Crossover Point is saying one is just spending the income from investments and not principal; whereas Critical Mass is spending the income plus some principal. Is this correct?
by Abe
Sat May 07, 2016 10:03 am
Forum: Investing - Theory, News & General
Topic: P/E ratio of the S&P 500
Replies: 23
Views: 2637

Re: P/E ratio of the S&P 500

Is there a certain point in which case we should consider selling some of our holdings or at least not purchasing more equities, perhaps if the PE ratio is >50? I suppose this would have prevented you from getting to the peak in 2008/2009. I'm a simple person who has been investing my $$$ in the ma...
by Abe
Fri May 06, 2016 2:37 pm
Forum: Personal Consumer Issues
Topic: how much cash do you carry in your wallet?
Replies: 152
Views: 13847

Re: how much cash do you carry in your wallet?

$400 to $500 but not in my wallet. I keep it in my right front pocket with a rubber band around it. :happy
by Abe
Fri May 06, 2016 11:43 am
Forum: Investing - Help with Personal Investments
Topic: Oh boy, what to do
Replies: 27
Views: 4431

Re: Oh boy, what to do

I knew an elderly man who was self employed. He would go to the produce market long before daylight and then run his route all day selling produce. He was hard working, a good business man and very frugal. I asked him one day why he didn't retire. He said that he had saved his money all his life but...
by Abe
Fri May 06, 2016 10:33 am
Forum: Investing - Help with Personal Investments
Topic: Oh boy, what to do
Replies: 27
Views: 4431

Re: Oh boy, what to do

Maybe you should put $5k or $10k in the stock market (maybe the Vanguard Total Stock Mkt Fund or the S&P 500 Index fund) just to get your feet wet. If the market goes down, you can't lose too much. Over time you may be more comfortable putting more in. I know it's hard initially, but it should g...
by Abe
Fri May 06, 2016 9:51 am
Forum: Personal Finance (Not Investing)
Topic: The crossover point [When can you retire?]
Replies: 59
Views: 9689

Re: The crossover point

I've heard the term "critical mass" used which I think basically means the same thing. "Critical Mass" is a term made popular by Bob Brinker, host of ABC Radio's "Moneytalk" and editor of the newsletter called "Marketimer." For investors, your investments are ...
by Abe
Wed May 04, 2016 11:06 am
Forum: Personal Consumer Issues
Topic: I cannot stop buying... [Investing/Personal Finance Books]
Replies: 54
Views: 7282

Re: I cannot stop buying... [Investing/Personal Finance Books]

Money is just a tool not an end in itself. Speak for yourself. I like money for the sake of money. In video games, I always spent time grinding (where you go out and do the same thing over and over) for the purpose of building wealth. (After you slay the monsters and save the world, what are you go...
by Abe
Tue May 03, 2016 3:36 pm
Forum: Personal Finance (Not Investing)
Topic: Recast Mortgage to Improve Cash Flow?
Replies: 5
Views: 640

Re: Recast Mortgage to Improve Cash Flow?

I agree with jharkin and delamer. There is not much benefit recasting.
by Abe
Tue May 03, 2016 2:25 pm
Forum: Personal Consumer Issues
Topic: I cannot stop buying... [Investing/Personal Finance Books]
Replies: 54
Views: 7282

Re: I cannot stop buying... [Investing/Personal Finance Books]

Now, I like accumulating wealth. I enjoy it. My wife gets what she wants, and we go on vacations. My portion of our money goes into investing. I figure that when I die, she can spend it all. I can't wait to see what my "high score" will be! I'm glad you posted that because I feel the same...
by Abe
Tue May 03, 2016 12:25 pm
Forum: Personal Consumer Issues
Topic: I cannot stop buying... [Investing/Personal Finance Books]
Replies: 54
Views: 7282

Re: I cannot stop buying... [Investing/Personal Finance Books]

Since I got the religion, I don't buy so many investing books anymore. Boglehead investing is pretty simple: 1 Develop a workable plan 2 Invest early and often 3 Never bear too much or too little risk 4 Diversify 5 Never try to time the market 6 Use index funds when possible 7 Keep costs low 8 Minim...
by Abe
Sat Apr 30, 2016 2:10 pm
Forum: Personal Consumer Issues
Topic: New A/C for Florida Military Rental
Replies: 15
Views: 1362

Re: New A/C for Florida Military Rental

I recently installed a 3 ton Trane system airconditioner and furnace in a rental I own similar to yours for $3,927.00 total cost.

Edited to add: I see yours requires duct work. Mine already had the duct work. The $3,927.00 price was just for the A/C and furnace and installation.
by Abe
Tue Apr 26, 2016 5:11 pm
Forum: Personal Finance (Not Investing)
Topic: Local Major Bank Recommendations
Replies: 16
Views: 1056

Re: Local Major Bank Recommendations

Best advice is to use locally owned bank or CU where you can get to know management and they can get to know you. Have had Wells Fargo account for almost 40 years until got fed up with their seeming incompetence and now BofA account but still miss the locally owned bank in which I was a very minori...
by Abe
Tue Apr 26, 2016 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Why have a formal budget?
Replies: 82
Views: 5716

Re: Why have a formal budget?

Dirghatamas wrote: my total expenses have been 1.5-2% of my gross income in the last couple of years and they have always been less than 10% of my gross income for pretty much as long as I can remember.


My expenses were roughly 15% of my taxable income last year, and I thought I was doing good. :happy
by Abe
Tue Apr 26, 2016 10:39 am
Forum: Investing - Theory, News & General
Topic: If I think the market floor is much lower than the ceiling is high...
Replies: 16
Views: 1572

Re: If I think the market floor is much lower than the ceiling is high...

As nisiprius said, the market downside is zero. The market upside is infinite.
by Abe
Tue Apr 26, 2016 10:27 am
Forum: Personal Finance (Not Investing)
Topic: Why have a formal budget?
Replies: 82
Views: 5716

Re: Why have a formal budget?

I never had a budget until a few years ago. Since I've always been self employed, my income was unpredictable. My system was to spend as little as possible, and when my bank account went up enough, I would take money out and invest it. Out of curiosity, I did a spreadsheet budget a few years ago and...
by Abe
Fri Apr 22, 2016 4:38 pm
Forum: Investing - Theory, News & General
Topic: Do you think this is a bad time to enter the market? With the dow at 18,000
Replies: 89
Views: 8009

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

Why is it so hard to invest a lump sum, but easy to hold the same amount and not sell? The end result is the same. If you invest $100k and the market loses 50%, you lose $50k. If you have the same $100k that's been invested for a while and don't sell it and the market loses 50%, you lose the same am...
by Abe
Thu Apr 21, 2016 2:18 pm
Forum: Personal Finance (Not Investing)
Topic: Why am I still scared ? Is it actually normal ?
Replies: 59
Views: 6988

Re: Why am I still scared ? Is it actually normal ?

The Station Tucked away in our subconscious is an idyllic vision. We see ourselves on a long trip that spans the continent. We are traveling by train. Out the windows we bring in the passing scene of cars on nearby highways, of children waving at a crossing, of cattle grazing on a distant hillside, ...
by Abe
Thu Apr 21, 2016 1:47 pm
Forum: Investing - Help with Personal Investments
Topic: Question about calculating tax basis
Replies: 6
Views: 467

Re: Question about calculating tax basis

Thanks everyone for your help. Abe
by Abe
Wed Apr 20, 2016 3:49 pm
Forum: Investing - Help with Personal Investments
Topic: Question about calculating tax basis
Replies: 6
Views: 467

Re: Question about calculating tax basis

Just the ordinary........the qualified dividends are contained in the ordinary.......so you will find that qualified <= ordinary but never >. It's probably better to look at your statements to see what is being reinvested rather than the 1099-DIV which shows distributions. Okay. Thanks a lot. My on...
by Abe
Wed Apr 20, 2016 3:31 pm
Forum: Investing - Help with Personal Investments
Topic: Question about calculating tax basis
Replies: 6
Views: 467

Question about calculating tax basis

I am trying to calculate my basis in a mutual fund. I am getting my information from my 1099-Div form from the IRS. It is my understanding that I add my original cost to any reinvested distributions (dividends and capital gains) to arrive at my basis. My confusion is about ordinary dividends and qua...
by Abe
Tue Apr 19, 2016 6:20 pm
Forum: Personal Finance (Not Investing)
Topic: Why am I still scared ? Is it actually normal ?
Replies: 59
Views: 6988

Re: Why am I still scared ? Is it actually normal ?

Most of my life, I worried about making it. Now I worry about losing it. Some people just worry. :beer
by Abe
Sat Apr 16, 2016 12:06 pm
Forum: Investing - Theory, News & General
Topic: What are Pros and Cons to the "Four Hour Workweek?"
Replies: 99
Views: 11359

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

There are a lot of opportunities out there, but there is no easy way to make money that I know of. I've been self employed my entire life, and never worked for a salary. Having said that, I have to say it was not easy, and I never made a lot of money. I've been fairly successful but not because I ma...
by Abe
Sat Apr 16, 2016 11:37 am
Forum: Personal Consumer Issues
Topic: Cost of medication - Costco versus Walgreens
Replies: 31
Views: 5342

Re: Cost of medication - Costco versus Walgreens

I have my Part D with Humana. The premium is only about $18 a month. I was getting my prescriptions filled at Walmart at very little cost, but now I get them from Humana Pharmacy. They send a 3 month supply in the mail and they are free. Can't beat that.
by Abe
Sat Apr 16, 2016 11:07 am
Forum: Investing - Theory, News & General
Topic: What are Pros and Cons to the "Four Hour Workweek?"
Replies: 99
Views: 11359

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

There ain't no free lunch, or something like that. :beer

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