Search found 1536 matches

by Bfwolf
Thu Jul 27, 2017 11:58 pm
Forum: Investing - Help with Personal Investments
Topic: Invest in the US - planning to leave after 2-3 years
Replies: 9
Views: 687

Re: Invest in the US - planning to leave after 2-3 years

A couple of adjacent points to your main question, which others are answering: 1) Even though you are not eligible to make a traditional IRA contribution due to your income, you are still eligible to rollover your 401k into a traditional IRA when you leave your company. So you don't have to roll you...
by Bfwolf
Thu Jul 27, 2017 10:58 pm
Forum: Investing - Help with Personal Investments
Topic: windfall upon job change
Replies: 5
Views: 727

Re: windfall upon job change

Maybe somebody else will think of something more clever, but I'm with the folks above who say just add it to your taxable account. Question regarding all those stock options: is your plan to wait until you "retire" and then start cashing them in at the lower tax rate? This makes sense, but...
by Bfwolf
Mon Jul 24, 2017 8:47 pm
Forum: Investing - Help with Personal Investments
Topic: What would be the best way to keep money liquid for 1 year with best return?
Replies: 5
Views: 650

Re: What would be the best way to keep money liquid for 1 year with best return?

BTW, do you guys pay tax for income from interest? This whole federal withholding crap is confusing me. I hope I am exempt. :? :? :? This has me laughing out loud!!! In all seriousness, if you have never paid income tax in your life, don't worry about making quarterly payment, you'll pay at 4/15 ne...
by Bfwolf
Mon Jul 24, 2017 8:32 pm
Forum: Investing - Help with Personal Investments
Topic: What would be the best way to keep money liquid for 1 year with best return?
Replies: 5
Views: 650

Re: What would be the best way to keep money liquid for 1 year with best return?

Hi Guys, I have around 300k laying in cash collecting 1.15% from Ally Bank. I am thinking of putting away around 200k for 11 month no-penalty CD with APY of 1.5% Does this seem like the best option around? I want to keep my principal and simply put away money for about a year. Thank you. BTW, do yo...
by Bfwolf
Sun Jul 23, 2017 3:59 pm
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 14299

Re: Dividend Misunderstandings & Only Spend Return

Moreover, I'm not sure exactly what we are testing here. Mostly I figured we were testing a dividend strategy. Given a portfolio this non-diversified (I'm not running a mutual fund) and there are only about 4 industries you are going to have all sorts of issues gumming up the works. Particular liti...
by Bfwolf
Sun Jul 23, 2017 9:10 am
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 14299

Re: Dividend Misunderstandings & Only Spend Return

NNA and GMLP I want for diversification. This is already rather concentrated I don't want to lose yet another industry. They are going to correlate strongly with USA shipping, they are both global providers. How about you pick 2 other stocks HQed in the USA then? We don't need currency fluctuations...
by Bfwolf
Sun Jul 23, 2017 12:06 am
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 14299

Re: Dividend Misunderstandings & Only Spend Return

It really isn't that hard to figure out which companies have a reliable yield and choose companies based their ability to provide the dividend. Yield plus quality screens would give you many many companies with a reliable dividend. Which incidentally also outperform the market and at lower risk. Pl...
by Bfwolf
Sat Jul 22, 2017 5:52 pm
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 14299

Re: Dividend Misunderstandings & Only Spend Return

It really isn't that hard to figure out which companies have a reliable yield and choose companies based their ability to provide the dividend. Yield plus quality screens would give you many many companies with a reliable dividend. Which incidentally also outperform the market and at lower risk. Pl...
by Bfwolf
Sat Jul 22, 2017 4:49 pm
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 14299

Re: Dividend Misunderstandings & Only Spend Return

willthrill: in your example, every time you don't reinvest the dividend you are choosing to own less of B than A. If you think the companies are identical why are you doing that? And sure, you'd rather own less of a company right before it gets wiped out. Right! What if the opposite happened and th...
by Bfwolf
Sat Jul 22, 2017 2:23 pm
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 14299

Re: Dividend Misunderstandings & Only Spend Return

saltycaper wrote:
Bfwolf wrote:

Oh well, I tried! I'll leave it to others to keep fighting the good fight.



Thank you for your efforts. You've dispatched the "free money" concept with ease, and I can't believe this is still a point of debate.


:sharebeer
by Bfwolf
Sat Jul 22, 2017 1:52 pm
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 14299

Re: Dividend Misunderstandings & Only Spend Return

You don't have two companies you have two bank accounts / money markets. In your example both A and B trade at intrinsic value the entire time. In which case, yes the return is equal. :confused :confused :confused Oh well, I tried! I'll leave it to others to keep fighting the good fight. The good n...
by Bfwolf
Sat Jul 22, 2017 1:47 pm
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 14299

Re: Dividend Misunderstandings & Only Spend Return

The math works as long as you assume each stock will rise and fall the exact same amount. How likely is that? I don't have a dog in this fight, but there are a lot of people arguing that dividend paying stocks are less volatile. See http://www.investopedia.com/ask/answers/06/pricevolatilitydividend...
by Bfwolf
Sat Jul 22, 2017 1:17 pm
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 14299

Re: Dividend Misunderstandings & Only Spend Return

This is an optical illusion. Your dividends reduce the value of the stock by the exact same amount. Thus, dividend stocks are not lower risk than non-dividend stocks. In fact, dividend stocks tend to be value stocks and thus are probably marginally higher risk than Total Market stocks, though also ...
by Bfwolf
Fri Jul 21, 2017 7:54 pm
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 14299

Re: Dividend Misunderstandings & Only Spend Return

I dont accept the contention that cash retained in a company is always equal to or better than cash distributed to me via dividends. I can understand why a finance professor would say they are equal as an academic matter, but in the real world retained earnings might or might not increase the value...
by Bfwolf
Fri Jul 21, 2017 7:43 pm
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 14299

Re: Dividend Misunderstandings & Only Spend Return

Work through you scenario where you are steadily pulling out $200 each quarter from the fund (I have to compensate for the crazy yield). During that 50% off quarter you do much more damage. Nope, you'll end up in the exact same place whether the fund pays a dividend or not. You do the math this tim...
by Bfwolf
Fri Jul 21, 2017 7:00 pm
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 14299

Re: Dividend Misunderstandings & Only Spend Return

No one has mentioned this: reinvested divvies are purchases on the regular dips. Yes, you get your own back, but you buy new shares at a discount, usually the same % as the divvie. In a large, stable company, the price tends to rise by at least the same amount by the next divvie cycle. Over decades...
by Bfwolf
Fri Jul 21, 2017 5:54 pm
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 14299

Re: Dividend Misunderstandings & Only Spend Return

Nate, Here is a chart of Vanguard dividend growth fund vs. the S & P 500. Hope this helps you... http://www.morningstar.com/funds/XNAS/VDIGX/quote.html Ha! You have cherry picked an actively managed fund that isn't even high dividend. It has a yield of 2% vs Total Stock Market Index of 1.92%. I...
by Bfwolf
Fri Jul 21, 2017 2:47 pm
Forum: Personal Consumer Issues
Topic: Hotel Credit Card
Replies: 15
Views: 844

Re: Hotel Credit Card

If you don't want to chase credit card bonuses every year, then I agree with the IHG card with the caveat that both you and your wife should get it. That way, you get 2 free nights per year which is far more useful practically speaking than 1 free night a year. But as others have said, this isn't a ...
by Bfwolf
Fri Jul 21, 2017 12:41 pm
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 14299

Re: Dividend Misunderstandings & Only Spend Return

annual total return = dividend yield + annual capital gain annual capital gain is a highly volatile asset while dividend yield is mostly low volatility decreasing very infrequently. Dividend yield while not perfectly adjusted for inflation tends to increase at least at the speed of inflation (and u...
by Bfwolf
Sun Jul 16, 2017 10:42 pm
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 1984
Views: 332306

Re: What's Your Credit Card Rewards Strategy?

RE: the Merrill Lynch card What has been your most valuable redemption from the bonus points earned on that card? Did you continue to use it after getting the bonus? I'm reading that churning this card has become much more restrictive. Have you been successful at that? (recently?) Thanks The first ...
by Bfwolf
Sun Jul 16, 2017 5:04 pm
Forum: Personal Finance (Not Investing)
Topic: Buying beach bungalow in San Diego for Winters
Replies: 55
Views: 4456

Re: Buying beach bungalow in San Diego for Winters

Finding a way to get an apartment there for a part of the year seems like the most viable approach. As someone pointed out, even if it was just December through February that would make a big difference. I'll explore more. It takes a bit of searching and luck, but if you find a student taking a qua...
by Bfwolf
Sun Jul 16, 2017 1:49 pm
Forum: Personal Finance (Not Investing)
Topic: Buying beach bungalow in San Diego for Winters
Replies: 55
Views: 4456

Re: Buying beach bungalow in San Diego for Winters

Sounds like you'll be in a great shape to retire provided you don't use half or more of your assets to buy a home that you don't really need now. One caution: Bear in mind that if we revert back to normal inflation, or even worse -- like the 80's -- that $18K pension won't be nearly as much as it s...
by Bfwolf
Sun Jul 16, 2017 1:12 pm
Forum: Personal Finance (Not Investing)
Topic: Buying beach bungalow in San Diego for Winters
Replies: 55
Views: 4456

Re: Buying beach bungalow in San Diego for Winters

You have 20x expenses and spend more than you make. Forget about paying double rent for even part of the year that makes no sense. As it is you're on a path towards never retiring. I have a <2% withdrawal rate, will get an $18K pension when I turn 65 and will receive significant Social Security ret...
by Bfwolf
Sun Jul 16, 2017 1:02 pm
Forum: Personal Finance (Not Investing)
Topic: Buying beach bungalow in San Diego for Winters
Replies: 55
Views: 4456

Re: Buying beach bungalow in San Diego for Winters

Congratulations on doing so well financially. Unfortunately, even being a millionaire isn't likely to make it possible to get a normal mortgage for any significant amount of money. So it doesn't sound promising that a mortgage will be workable at all. The taxes and whether it's a primary residence ...
by Bfwolf
Sun Jul 16, 2017 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: Buying beach bungalow in San Diego for Winters
Replies: 55
Views: 4456

Re: Buying beach bungalow in San Diego for Winters

I have a desire for two months a year in Maui and know exactly the complex in which I want to live. Even during the real estate bust, I could not make the numbers for owning make as much sense as renting without making some pretty big assumptions about appreciation. Have you looked at a corporate h...
by Bfwolf
Sun Jul 16, 2017 12:10 pm
Forum: Personal Finance (Not Investing)
Topic: Buying beach bungalow in San Diego for Winters
Replies: 55
Views: 4456

Re: Buying beach bungalow in San Diego for Winters

There are lots of possible downsides but one thing you could look into is "Fractional ownership"(Google this) of a property in San Diego. This would be where you get the use of the property for six months out of the year and someone else gets it for the other six months.(or three people w...
by Bfwolf
Sun Jul 16, 2017 12:02 pm
Forum: Personal Finance (Not Investing)
Topic: Buying beach bungalow in San Diego for Winters
Replies: 55
Views: 4456

Re: Buying beach bungalow in San Diego for Winters

I appreciate the insight, especially regarding my budget being unrealistic. I don't have much desire to live in San Diego all year. I really love my group of friends in Chicago and everything about the city for about 5 to 6 months out of the year. I also generally like the people here better...more ...
by Bfwolf
Sat Jul 15, 2017 2:19 pm
Forum: Personal Finance (Not Investing)
Topic: Buying beach bungalow in San Diego for Winters
Replies: 55
Views: 4456

Buying beach bungalow in San Diego for Winters

UPDATE: It's been pointed out that my original plan of buying a place and Airbnbing it won't work. The focus of the conversation is now how I could reasonably live in San Diego during the Winter and Chicago in the Summer. I'm a single guy living in Chicago. This time of year, it's great. But the Wi...
by Bfwolf
Fri Jul 14, 2017 12:04 am
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 1984
Views: 332306

Re: What's Your Credit Card Rewards Strategy?

Any input on how to best get a last minute flight out of EWR - MIA first class for this saturday? We have tons of chase UR points. Should we just use the points and book via chase.com or are there better alternatives? Do you have the Chase Sapphire Reserve where you can get 1.5 cents per point book...
by Bfwolf
Mon Jul 10, 2017 1:35 pm
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 14299

Re: Dividend Misunderstandings & Only Spend Return

Going full circle... I' am sitting back in the weeds getting dividends & compounding out. The Total Stock Market & S & P 500 have only outperformed High Dividend Yield by a hair in the past 4 years. What about the next 80 years? Now the optimum might be (1) add a bond fund, to make it 8...
by Bfwolf
Mon Jul 10, 2017 1:09 pm
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 14299

Re: Dividend Misunderstandings & Only Spend Return

You guy's are good & it's much appreciated...thank you for the great conversation! (getting into the weeds of this whole thing). As I see it the Total Stock Market is a very good fund! With 3600 stocks...but a lot of these companies are small, medium companies that are never going to do anythin...
by Bfwolf
Mon Jul 10, 2017 12:31 pm
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 14299

Re: Dividend Misunderstandings & Only Spend Return

I know...never say never... Last night I went through the stock holding of VHDYX. These big blue chip stocks have been around for years & are going to be around for years to come. They employ millions of people. Now they might have their up & downs but I don't see them going anywhere. VHDYX...
by Bfwolf
Mon Jul 10, 2017 12:20 pm
Forum: Investing - Theory, News & General
Topic: Dividend Misunderstandings & Only Spend Return
Replies: 282
Views: 14299

Re: Dividend Misunderstandings & Only Spend Return

dbr & others, Here is my plan... Being a young guy. What would happen if I never sold the portfolio & just lived off of the dividends and passed it down to my kids/charity at death someday? $1.0 million x 3% = $30,000 per year. $2.0 million x 3% = $60,000 per year. $3.0 million x 3% = $90,0...
by Bfwolf
Fri Jul 07, 2017 10:29 am
Forum: Investing - Help with Personal Investments
Topic: Accounting for Dividends in Safe Withdrawal Rate
Replies: 42
Views: 2383

Re: Accounting for Dividends in Safe Withdrawal Rate

JNJ paid $9.66 in dividends from March 2014-March 2017. Are you saying that my JNJ shares would be trading at $9.66 hihher today if they had not paid those dividends? If the answer is yes, how can you prove that? The short answer is yes, something like that. The long answer is what dbr said. Just l...
by Bfwolf
Wed Jul 05, 2017 10:18 pm
Forum: Investing - Help with Personal Investments
Topic: Accounting for Dividends in Safe Withdrawal Rate
Replies: 42
Views: 2383

Re: Accounting for Dividends in Safe Withdrawal Rate

" Whether one decides to take dividends in cash or to sell the same amount in share value it is the same mathematically. " No, its not. The value of a share is the net present value of its share of future free cash flow. Paying a portion of already generated FCF as a dividend is different...
by Bfwolf
Wed Jul 05, 2017 10:05 pm
Forum: Investing - Help with Personal Investments
Topic: Accounting for Dividends in Safe Withdrawal Rate
Replies: 42
Views: 2383

Re: Accounting for Dividends in Safe Withdrawal Rate

Warning: Although it is repeated often on this blog, it is incorrect to say that using dividend for income is the same as selling shares. When you sell shares you lose both future dividends from those shares and potential capital gains from the shares. When you use dividends for income, you only lo...
by Bfwolf
Sun Jul 02, 2017 9:31 pm
Forum: Personal Finance (Not Investing)
Topic: Picking College and College Scholarships
Replies: 365
Views: 29666

Re: Picking College and College Scholarships

Allow me to be a little bit contrarian here to all the people who are throwing out more and more schools. I'd say: stop looking. Cancel that East Coast trip. You've got 7 strong schools here. You've been done an incredible amount of due diligence. This choice of schools is being imbued with gravity ...
by Bfwolf
Sun Jul 02, 2017 9:17 pm
Forum: Personal Finance (Not Investing)
Topic: Childless couple - want siblings to inherit after we both go
Replies: 36
Views: 3435

Re: Childless couple - want siblings to inherit after we both go

#2 makes perfect sense to me. Assuming you and your spouse trust each other, why not just make each other the successor trustees (with yourselves as the initial trustees)? When Spouse1 dies, Spouse2 will just spend from his/her trust and if he/she runs that down he/she will spend from Spouse1's trus...
by Bfwolf
Sun Jul 02, 2017 9:09 pm
Forum: Personal Finance (Not Investing)
Topic: Need help progressing in life after a massive setback
Replies: 31
Views: 5161

Re: Need help progressing in life after a massive setback

Given your educational/career background, the most obvious way to change your career path would be to go get an MBA. That's exactly why 90% of people attend top MBA programs. It doesn't have to be Ivy League. There are 15 to 20 schools that are really top notch and would give you access to very good...
by Bfwolf
Sun Jul 02, 2017 11:30 am
Forum: Investing - Help with Personal Investments
Topic: Am I being unrealistic about my expectations of dividend income? Is there a better alternative?
Replies: 132
Views: 12200

Re: Am I being unrealistic about my expectations of dividend income? Is there a better alternative?

Ok...Let's get really specific with my situation. (What would you do)? Background info: B.A. Degree in Finance (I think I know what I'm doing) (debate able)... Mom died & left me with $200,000. Parents divorced years ago...I'm on my own (no family, not married, no kids). No debt. (No car loans,...
by Bfwolf
Sat Jul 01, 2017 3:52 pm
Forum: Personal Consumer Issues
Topic: Need Credit Card for International Travel
Replies: 45
Views: 2778

Re: Need Credit Card for International Travel

If you're getting a new credit card, you may as well get one that will pay you a bonus to do so. The best one is almost certainly the Chase Sapphire Preferred. Add an add'l user when you sign up and you'll get 55K Ultimate Rewards after spending $4k in the first 3 months (which I doubt you'll have a...
by Bfwolf
Sat Jul 01, 2017 3:22 pm
Forum: Personal Consumer Issues
Topic: Debating a weekend in Chicago (south side)
Replies: 54
Views: 4122

Re: Debating a weekend in Chicago (south side)

Chicago is a literal war zone. Come on. This is outrageous hyperbole. NO city in America is a LITERAL war zone. And Chicago is far from being the worst city in America. There were 28 murders per every 100,000 people in Chicago in 2016. This was behind St Louis (#1 at 59.3), Baltimore, Detroit, New ...
by Bfwolf
Sat Jul 01, 2017 1:42 pm
Forum: Personal Consumer Issues
Topic: Stressless Recliners
Replies: 30
Views: 16338

Re: Stressless Recliners

I have some back and neck problems and bought a Stressless chair a year ago. While it is an amazingly comfortable chair, it hasn't been a good fit for me personally, and I've stopped using it as it aggravated my condition. The only chair I've found I can sit in for long periods of time without screw...
by Bfwolf
Sat Jul 01, 2017 1:22 pm
Forum: Investing - Help with Personal Investments
Topic: Am I being unrealistic about my expectations of dividend income? Is there a better alternative?
Replies: 132
Views: 12200

Re: Am I being unrealistic about my expectations of dividend income? Is there a better alternative?

Additional information. Since I'm 23 year's old. My investing lifetime is age 100 - age 23 = 77 more years. The portfolio can't have a sequence of risk over a long, long period of time. The portfolio has to be able to shoot out a dependable income + grow well into the future. Not to mention wanting...
by Bfwolf
Fri Jun 30, 2017 1:11 pm
Forum: Personal Consumer Issues
Topic: Bank of America vs Chase
Replies: 36
Views: 4393

Re: Bank of America vs Chase

I agree with some of the posters above who encourage you to consider abandoning a brick and mortar bank. I use Ally, they're great. There are others. These Internet banks reimburse ATM fees so you're not locked in to one bank's ATMs. How often do you actually need a brick and mortar bank? For me--ne...
by Bfwolf
Thu Jun 29, 2017 10:54 pm
Forum: Personal Consumer Issues
Topic: Debating a weekend in Chicago (south side)
Replies: 54
Views: 4122

Re: Debating a weekend in Chicago (south side)

This whole post is making me jealous! I had a trip to Chicago (never been) set for me and my wife about 9 months ago. We were all set with boat arch tour, second city, awesome restaurants, sweet hotel in water tower area, etc.... And then a dang hurricane came up the coast to where I currently live...
by Bfwolf
Thu Jun 29, 2017 12:35 am
Forum: Personal Consumer Issues
Topic: Debating a weekend in Chicago (south side)
Replies: 54
Views: 4122

Re: Debating a weekend in Chicago (south side)

It was cool! We ate some good food...Big Star, a Cuban place called 90 miles which was recommended by our Airbnb host was really good, and we had Lou Malnati's because one of the guys never had it before. We stayed out of the traditional downtown area...ended up checking out that Do Division street...
by Bfwolf
Tue Jun 27, 2017 12:57 am
Forum: Personal Consumer Issues
Topic: Debating a weekend in Chicago (south side)
Replies: 54
Views: 4122

Re: Debating a weekend in Chicago (south side)

So I have been to Chicago several times staying more on the north side near Wrigley Field. Have been there for a ballgame. We had friends that used to live there and always stayed with them in their great location condo near lots of great restaurants and bars, in a great neighborhood, walking dista...
by Bfwolf
Sun Jun 25, 2017 10:25 am
Forum: Investing - Theory, News & General
Topic: Two Podcasts -- Good?
Replies: 9
Views: 979

Re: Two Podcasts -- Good?

I'll have to try some of the ones recommended here!

Two I enjoy are Planet Money and 99% Invisible.

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