Search found 91 matches

by GAAP
Thu Aug 17, 2017 11:07 am
Forum: Investing - Help with Personal Investments
Topic: what % of international stock
Replies: 31
Views: 1739

Re: what % of international stock

Whatever the relative proportion of international is in the total world market -- I only hold VT (Vanguard Total World Stock ETF).

That's technically not exactly accurate, since I do have a small, roughly-equal allocation to VNQ and VNQUI (Vanguard REIT ETF and Vanguard Global Ex-US Real Estate ETF).
by GAAP
Thu Aug 17, 2017 10:39 am
Forum: Investing - Help with Personal Investments
Topic: Bond Fund in Taxable... ok for me?
Replies: 27
Views: 1793

Re: Bond Fund in Taxable... ok for me?

I wonder if some of the confusion surrounding the bonds in taxable vs. elsewhere stems from some people trying to minimize their tax burden while others are seeking to maximize total after-tax wealth. The two are not completely equivalent. I think you're right. In most posts that I've seen on the t...
by GAAP
Wed Aug 02, 2017 10:09 am
Forum: Personal Consumer Issues
Topic: Any problem leaving a hole in ceiling of garage?
Replies: 27
Views: 1969

Re: Any problem leaving a hole in ceiling of garage?

You may not have any current problems -- and you'll be just fine as long as there are no pests, no vehicles in the garage, nothing else that burns fuel (portable heater, water heater, furnace), don't have a fire, and don't do anything that would bring a building inspector in the garage, don't have a...
by GAAP
Fri Jul 28, 2017 11:28 am
Forum: Personal Consumer Issues
Topic: Replace floor BEFORE or AFTER New Cabinets?
Replies: 30
Views: 3469

Re: Replace floor BEFORE or AFTER New Cabinets?

We just completed ours a couple of months ago. Tile after, but also placed under the dishwasher. Didn't change the cabinets, but would still do it the same way -- you'll be replacing the countertop anyway, just make sure the dishwasher isn't too tall. We also add moisture barrier (RedGard) all aroun...
by GAAP
Fri Jul 28, 2017 11:18 am
Forum: Personal Consumer Issues
Topic: Use Guest wifi for thermostat, Roku, etc.
Replies: 28
Views: 2943

Re: Use Guest wifi for thermostat, Roku, etc.

I separate streaming traffic (Roku), guest traffic (people/devices who don't live here), and internal traffic. I don't have IOT type devices, but would separate them also. Anything security related, such as an alarm system, would also be by itself. Keep in mind that my viewpoint comes from a few dec...
by GAAP
Fri Jul 14, 2017 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 5160

Re: When to max out 401k (Aspiring Early Retiree)

A quick calculation, all in real terms: Salary = $76K Target Retirement Value = $1.9M (25x salary) Working Ages 27-55 Returns = 4.5% Constant Savings Rate Required = 55% If you work until 60, the required savings rate drops to 28%. If you only want to spend at 50% of your employment income and reti...
by GAAP
Fri Jul 14, 2017 1:50 pm
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 5160

Re: When to max out 401k (Aspiring Early Retiree)

A quick calculation, all in real terms: Salary = $76K Target Retirement Value = $1.9M (25x salary) Working Ages 27-55 Returns = 4.5% Constant Savings Rate Required = 55% If you work until 60, the required savings rate drops to 28%. If you only want to spend at 50% of your employment income and retir...
by GAAP
Fri Jul 14, 2017 11:28 am
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 5160

Re: When to max out 401k (Aspiring Early Retiree)

As a reference point, I started 401(k) contributions at age 28. I have always maxed out my contributions -- to the point where I was able to make after-tax contributions. Some of my employers matched at 100%, some at 50%, currently at 50% on the first 6%. The current and previous plan provided addit...
by GAAP
Fri Jul 14, 2017 11:04 am
Forum: Investing - Help with Personal Investments
Topic: Work Discount Stock Purchase Plan - When to Sell
Replies: 15
Views: 848

Re: Work Discount Stock Purchase Plan - When to Sell

Sell immediately, lock in 7.5%. Wait a day, and you're market timing.

Years ago I worked for a company that was at the bottom and later when up a lot. A few years after that, the company went bankrupt after 107 years of operation -- how much do you really want to risk it?
by GAAP
Fri Jul 14, 2017 10:26 am
Forum: Personal Finance (Not Investing)
Topic: Is new car replacement insurance worth it?
Replies: 33
Views: 2220

Re: Is new car replacement insurance worth it?

I have no knowledge of this type of insurance, but the numbers, to me, just do no add up - as presented. So, after 4 1/2 years - the car is totaled - and worth, say, $20,000 - they will buy a new car then worth, say, over $50,000??? That is correct. An example from my wife's motorcycle crash a coup...
by GAAP
Fri Jul 14, 2017 9:53 am
Forum: Personal Finance (Not Investing)
Topic: How to calculate tax benefit of owning a home
Replies: 34
Views: 2521

Re: How to calculate tax benefit of owning a home

The tax advantages are a great way to convince people to buy houses that they can't afford... The NPV on the tax savings is unlikely to make much real difference unless you're buying a multi-million dollar house --even then, it's not likely to be significant to you, given the income you would need t...
by GAAP
Fri Jul 14, 2017 9:43 am
Forum: Personal Finance (Not Investing)
Topic: Is new car replacement insurance worth it?
Replies: 33
Views: 2220

Re: Is new car replacement insurance worth it?

Years ago, I bought a new vehicle that was subsequently stolen in the first year. The insurance company paid me the wholesale (low) bluebook value for that vehicle -- essentially 20% less than it cost me. I ended up replacing it with a lower value vehicle that didn't meet my needs as well. Insurance...
by GAAP
Fri Jul 14, 2017 9:35 am
Forum: Investing - Help with Personal Investments
Topic: Have you switched from Total International to Slice & Dice or vice versa?
Replies: 28
Views: 2154

Re: Have you switched from Total International to Slice & Dice or vice versa?

I am by nature in favor of slice and dice. However, I have fairly recently changed for two reasons. First, long term concerns about cognitive decline. Second, because it is much easier to explain to my wife -- who is scared of all non-real estate investments due to experiences in her formative finan...
by GAAP
Mon Jul 03, 2017 5:24 pm
Forum: Investing - Help with Personal Investments
Topic: Seeking advice on Early Retirement
Replies: 30
Views: 3849

Re: Seeking advice on Early Retirement

My working estimate for healthcare inflation is twice the long-term inflation rate, which I estimate at 3% -- yielding a 6% healthcare inflation rate. If you have a good healthcare plan from your employer, ask what COBRA would cost to provide another potential planning number for your estimates. Cho...
by GAAP
Mon Jul 03, 2017 4:50 pm
Forum: Investing - Help with Personal Investments
Topic: Investing vs Mortgage
Replies: 4
Views: 665

Re: Investing vs Mortgage

The mortgage is a fixed contract. Inflation is to some degree related to the underlying value of the house, but not to the mortgage itself. I can somewhat see considering inflation if you have an adjustable rate mortgage, since those rates may actually be influenced by inflation. However, I wouldn't...
by GAAP
Mon Jul 03, 2017 1:40 pm
Forum: Investing - Theory, News & General
Topic: Using a 5y moving average to smooth withdrawals in VPW?
Replies: 21
Views: 1729

Re: Using a 5y moving average to smooth withdrawals in VPW?

FWIW, my plan is to use a typical spreadsheet function that works in Excel or LibreOffice: PMT(Rate, NPER, PV, FV, Type). For Rate I use the expected real return of my portfolio, based upon a 50-year historical period and modified by my asset allocation. I set NPER to 1, Present Value to my portfoli...
by GAAP
Mon Jul 03, 2017 12:13 pm
Forum: Investing - Theory, News & General
Topic: What may have led to the US stock sell-off on 6-30-17 at 3:50-4:00 p.m.?
Replies: 50
Views: 5298

Re: What may have led to the US stock sell-off on 6-30-17 at 3:50-4:00 p.m.?

There was a sell-off? Gee, I missed it -- wasn't paying attention...
by GAAP
Mon Jul 03, 2017 12:11 pm
Forum: Investing - Theory, News & General
Topic: Using a 5y moving average to smooth withdrawals in VPW?
Replies: 21
Views: 1729

Re: Using a 5y moving average to smooth withdrawals in VPW?

There's been a fair amount of discussion around smoothing VPW in this forum. The creator of the method doesn't like the idea at all -- smoothing is essentially incompatible with the expressed goal of spending down the entire portfolio in a specific time. If, after more research, you still want to go...
by GAAP
Mon Jul 03, 2017 11:55 am
Forum: Personal Finance (Not Investing)
Topic: Temporary Internal Promotion - Increased Compensation?
Replies: 73
Views: 4522

Re: Temporary Internal Promotion - Increased Compensation?

Take the experience and run with it -- you'll find out whether or not you really want to go down the management path without being forced to do so (or leave). Corporate America generally doesn't really have a process for granting you that temporary pay boost -- I've seen people in temporary position...
by GAAP
Mon Jul 03, 2017 10:35 am
Forum: Personal Finance (Not Investing)
Topic: Stress Testing Plans: How much stress?
Replies: 34
Views: 2579

Re: Stress Testing Plans: How much stress?

To be honest, I don't quite understand what you mean by "leveling" your income. I'm far away from getting to use S.S. but I'm planning on using it as a pure "bonus", to have assets/income for my lifestyle not counting on S.S. funds, so anything gained is welcome, but not "needed". That's what I mea...
by GAAP
Sat Jul 01, 2017 4:32 pm
Forum: Personal Finance (Not Investing)
Topic: Stress Testing Plans: How much stress?
Replies: 34
Views: 2579

Re: Stress Testing Plans: How much stress?

I don't know what you mean. If you need $50,000/yr to live and you have $1,666,667 nest egg allowing for 3% withdrawal of $50,000 what difference does S.S. (or the potential S.S.) make? Of course you take it when you can, but it is superfluous when your other assets provide for everything you need....
by GAAP
Sat Jul 01, 2017 1:21 pm
Forum: Investing - Theory, News & General
Topic: "Filling Your 401k with Company Stock"
Replies: 41
Views: 4447

Re: "Filling Your 401k with Company Stock"

How well I remember Northern Telecom Inc. (aka Nortel Networks) in just a few years going from $88.00+ to $0.43 per share before declaring bankruptcy. I knew a couple of co-workers who were totally invested in Nortel and went broke. :( Northern Telecom is exactly where I did it -- buying in the dip...
by GAAP
Sat Jul 01, 2017 1:10 pm
Forum: Investing - Theory, News & General
Topic: "Filling Your 401k with Company Stock"
Replies: 41
Views: 4447

Re: "Filling Your 401k with Company Stock"

Think of this as another form of diversification. Your personal capital is already invested in your employer, don't invest your financial capital there also.
by GAAP
Sat Jul 01, 2017 1:08 pm
Forum: Investing - Theory, News & General
Topic: "Filling Your 401k with Company Stock"
Replies: 41
Views: 4447

Re: "Filling Your 401k with Company Stock"

How well I remember Northern Telecom Inc. (aka Nortel Networks) in just a few years going from $88.00+ to $0.43 per share before declaring bankruptcy. I knew a couple of co-workers who were totally invested in Nortel and went broke. :( Northern Telecom is exactly where I did it -- buying in the dip...
by GAAP
Sat Jul 01, 2017 1:01 pm
Forum: Investing - Help with Personal Investments
Topic: How do you Limit Risk if You Shouldn't Own Bonds in a Taxable Account?
Replies: 26
Views: 1929

Re: How do you Limit Risk if You Shouldn't Own Bonds in a Taxable Account?

It's fine to own bonds in a taxable account. At these low interest rates, it could even be optimal for you. Unfortunately, it's a lot more complex than a simple rule of thumb would suggest. Says the person who wrote some excellent articles on the subject... https://www.whitecoatinvestor.com/asset-l...
by GAAP
Sat Jul 01, 2017 12:59 pm
Forum: Investing - Help with Personal Investments
Topic: How do you Limit Risk if You Shouldn't Own Bonds in a Taxable Account?
Replies: 26
Views: 1929

Re: How do you Limit Risk if You Shouldn't Own Bonds in a Taxable Account?

Your need for assets of a particular type in a particular account may change over time. If you're planning to build a significant taxable account for retirement, then when retirement starts you will probably be drawing down that account first. Since you're in the 33% bracket, your retirement income ...
by GAAP
Sat Jul 01, 2017 12:42 pm
Forum: Personal Finance (Not Investing)
Topic: Stress Testing Plans: How much stress?
Replies: 34
Views: 2579

Re: Stress Testing Plans: How much stress?

The biggest factor for me is expenses. Though no one knows how it will go in your future, you can take heart in knowing what you have been spending over the years. Before I retired I tracked EVERYTHING I spent in the eight years leading up to retirement. Then I looked at my total assets and figured...
by GAAP
Sat Jul 01, 2017 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: Stress Testing Plans: How much stress?
Replies: 34
Views: 2579

Re: Stress Testing Plans: How much stress?

I don't know what you mean. If you need $50,000/yr to live and you have $1,666,667 nest egg allowing for 3% withdrawal of $50,000 what difference does S.S. (or the potential S.S.) make? Of course you take it when you can, but it is superfluous when your other assets provide for everything you need....
by GAAP
Fri Jun 30, 2017 4:58 pm
Forum: Investing - Theory, News & General
Topic: "Filling Your 401k with Company Stock"
Replies: 41
Views: 4447

Re: "Filling Your 401k with Company Stock"

I did this once -- when the stock dropped precipitously. Yes, this was market timing, but I was young, stupid, and a believer. I got lucky -- especially considering they went bankrupt a few years later. My current employer has traditionally made matching contributions in stock, and allowed us to cha...
by GAAP
Fri Jun 30, 2017 4:50 pm
Forum: Investing - Theory, News & General
Topic: One fund, the whole stock market, why not?
Replies: 15
Views: 1413

Re: One fund, the whole stock market, why not?

That's probably true, but if the US has reached the market cap it has, it's because it's been more succesful than other markets. The USA benefited from a combination of a number of factors which may not be applicable anymore. WWII provide industrial growth without the physical impacts of war that w...
by GAAP
Fri Jun 30, 2017 3:37 pm
Forum: Investing - Theory, News & General
Topic: One fund, the whole stock market, why not?
Replies: 15
Views: 1413

Re: One fund, the whole stock market, why not?

Really? Where are you investing from? I know of single funds for both of those choices here in Europe, if you're from the US I'd assume choice would be even more vast. United States. If someone can point me to a total world bond fund (USD hedged for the international portion) or a total world real ...
by GAAP
Fri Jun 30, 2017 2:41 pm
Forum: Investing - Theory, News & General
Topic: "How Do Your Financial Priorities Stack Up With Our Pyramid?"
Replies: 36
Views: 4594

Re: Importance of having a goal? -- Retirement

Isn't the retirement goal the kind of lifestyle one wants to be able to support ? And without knowing that, how can one decide how much to save, how to invest it, and when he/she has enough ? An easy target to start with is to match your retirement net income to your existing net income, using a re...
by GAAP
Fri Jun 30, 2017 2:34 pm
Forum: Investing - Theory, News & General
Topic: One fund, the whole stock market, why not?
Replies: 15
Views: 1413

Re: One fund, the whole stock market, why not?

The biggest reason that I've seen espoused by those who want an exact market cap index of the world equity markets is that it can be cheaper (expense ratio) with two separate funds. I use one fund, since I don't want to actively manage the relationship. I would do the same for bonds and real estate ...
by GAAP
Fri Jun 30, 2017 2:28 pm
Forum: Personal Finance (Not Investing)
Topic: Those who max 401k
Replies: 55
Views: 7158

Re: Those who max 401k

My current employer allows everything up to the annual limit and then automatically does the rest as after-tax -- which allows me to exceed that limit, and then roll the funds into a Roth IRA. I have always taken the maximum withdrawal, whether or not it was completely matched, whenever I had access...
by GAAP
Fri Jun 30, 2017 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: Stress Testing Plans: How much stress?
Replies: 34
Views: 2579

Re: Stress Testing Plans: How much stress?

If in early retirement you won't be getting social security (yet anyway) so anything that happens with it is moot, if you can already survive without it. Yes, but I would try to make up for that up-front by bridging the difference. I also would want to be able to rationally discuss choices with my ...
by GAAP
Fri Jun 30, 2017 2:12 pm
Forum: Personal Finance (Not Investing)
Topic: Stress Testing Plans: How much stress?
Replies: 34
Views: 2579

Re: Stress Testing Plans: How much stress?

How far away from retirement are you? I really think of this as a general question, not retirement specific -- although it will help me pull the trigger on retirement. I have different input assumptions build into my spreadsheet that calculate what my final number at desired-retirement age will be ...
by GAAP
Fri Jun 30, 2017 2:01 pm
Forum: Personal Finance (Not Investing)
Topic: Stress Testing Plans: How much stress?
Replies: 34
Views: 2579

Re: Stress Testing Plans: How much stress?

Personally, I know that the "4% rule" was based on the worst set of circumstances in past history...that's enough stress for me. Well, worst case in the United States, for a 30-year retirement period that potentially spends down the entire portfolio. It wouldn't have worked in a lot of other places...
by GAAP
Fri Jun 30, 2017 1:26 pm
Forum: Personal Finance (Not Investing)
Topic: Stress Testing Plans: How much stress?
Replies: 34
Views: 2579

Stress Testing Plans: How much stress?

I'm curious to hear what conditions people use to test the ability of their plans (for example: future early retirement) hold up under stress. Right now, I use a reduced income level based upon: Devaluing a nominal pension by an assumed inflation rate Devaluing all defined benefits using their curre...
by GAAP
Fri Jun 30, 2017 11:15 am
Forum: Personal Consumer Issues
Topic: VPN for Fun
Replies: 14
Views: 2522

Re: VPN for Fun

I'm not too clear on what you want to achieve. Any VPN adds overhead, since it needs an encrypted wrapper around the traffic. To do this, there have to be two endpoints -- a source (client) and destination (server). The server typically decrypts the outbound traffic and sends it to a final destinati...
by GAAP
Fri Jun 30, 2017 10:44 am
Forum: Investing - Theory, News & General
Topic: "How Do Your Financial Priorities Stack Up With Our Pyramid?"
Replies: 36
Views: 4594

Re: "How Do Your Financial Priorities Stack Up With Our Pyramid?"

I absolutely agree with the idea that some things are more important than others - orders of magnitude more important. ... No - deciding which S&P fund to invest in is a tiny decision compared to deciding how much to save. An investor who put in an extra dollar per day in this same scenario would h...
by GAAP
Fri Jun 30, 2017 10:33 am
Forum: Investing - Theory, News & General
Topic: Eight Signs You are a Seasoned Investor by Johnathan Clements
Replies: 19
Views: 4628

Re: Eight Signs You are a Seasoned Investor by Johnathan Clements

I love this one in "11 signs" : 8. Jim Cramer? Who’s that? During the tech bubble I don't know if I lost more chasing Jim's picks or Fortune Magazine's picks. I have been passive ever since. I've only ever seen Cramer on an airport TV screen, and never understood how anyone could take him seriously...
by GAAP
Thu Jun 29, 2017 12:31 pm
Forum: Personal Consumer Issues
Topic: Suzuki V-Strom Negotiation
Replies: 5
Views: 553

Re: Suzuki V-Strom Negotiation

Like any other product, if you want to negotiate the price, you need to know what is available from other sellers. I would, at a minimum, check NADA, KBB, cycletrader, and craigslist. It sounds like you may have done so, already. Regardless, motorcycle prices are highly localized -- expand your sear...
by GAAP
Sat Jun 24, 2017 11:44 am
Forum: Investing - Theory, News & General
Topic: T-IRA Withdrawal (non-RMD): Convert to Roth First
Replies: 9
Views: 1014

Re: T-IRA Withdrawal (non-RMD): Convert to Roth First

I follow the idea of limiting taxes as a higher tax bill will reduce overall return, of course. If you knew what your tax rate would be when you're 70, excluding RMD's and any possible conversions that is the tax rate to beat. Pension, SS, interest and dividend income that's taxable, annuities, and...
by GAAP
Fri Jun 23, 2017 12:58 pm
Forum: Investing - Theory, News & General
Topic: T-IRA Withdrawal (non-RMD): Convert to Roth First
Replies: 9
Views: 1014

Re: T-IRA Withdrawal (non-RMD): Convert to Roth First

... The main requirement for it to be sensible is that you are the type that has to work things out to 6 decimal places. ... OP, I do think your "Normal Method" could stand some improvements. ... Note that you shouldn't have $2,000 sitting idle in cash available to pay the extra taxes. .....
by GAAP
Fri Jun 23, 2017 11:38 am
Forum: Personal Finance (Not Investing)
Topic: Sending money and confirming receipt?
Replies: 18
Views: 1305

Re: Sending money and confirming receipt?

123: For next time(s). If the recipient gives you a deposit slip for their bank you can walk in and make a deposit to their account. Just be aware that this will require a check or the use of your debit card -- Banks probably won't take a cash deposit due to regulations around money laundering. I u...
by GAAP
Thu Jun 22, 2017 5:20 pm
Forum: Investing - Theory, News & General
Topic: T-IRA Withdrawal (non-RMD): Convert to Roth First
Replies: 9
Views: 1014

Re: T-IRA Withdrawal (non-RMD): Convert to Roth First

I'm doing an apples-to-apples worst-case comparison, money market R-IRA vs money market bank account -- all done at the start of the year. If I had any plans to stay invested as long as possible, as many on this forum do, then moving the returns on those investments into the R-IRA has a bigger effec...
by GAAP
Thu Jun 22, 2017 4:10 pm
Forum: Investing - Help with Personal Investments
Topic: ROTH conversion
Replies: 12
Views: 1246

Re: ROTH conversion

BUT converting taxes will cost me $41,156 Only if you convert enough for that to happen -- convert less and your taxes decrease. If you really wanted to, you could convert right up to the point where the higher medicare costs kick in. A Roth conversion can be in any amount, it does not have to be a...
by GAAP
Thu Jun 22, 2017 3:53 pm
Forum: Investing - Theory, News & General
Topic: T-IRA Withdrawal (non-RMD): Convert to Roth First
Replies: 9
Views: 1014

T-IRA Withdrawal (non-RMD): Convert to Roth First

I believe a Roth conversion can always make sense, please check my logic: Assume I have a T-IRA, R-IRA, and either a bank account. If I need to withdraw $X annually, I can do one of the following: A. Normal Method 1. Withdraw $X from the T-IRA, and place it in the bank account. 2. Pay taxes on the $...
by GAAP
Wed Jun 21, 2017 11:09 am
Forum: Investing - Help with Personal Investments
Topic: ROTH conversion
Replies: 12
Views: 1246

Re: ROTH conversion

I certainly wouldn't convert this year -- no value to paying the extra taxes. Doing the conversions after that is essentially an NPV problem -- is the return sufficient, given your life expectancy. However, I think you're assuming that you have to convert all the way up to the bracket -- you don't h...
by GAAP
Wed Jun 21, 2017 10:45 am
Forum: Investing - Theory, News & General
Topic: "Home Bias Blues: Investors really should get out more. The reasons for sticking to local stocks are fewer by the day."
Replies: 52
Views: 4817

Re: "Home Bias Blues: Investors really should get out more. The reasons for sticking to local stocks are fewer by the da

This describes very well why I use VT (Vanguard Total World Stock) -- but I don't limit it to just stocks, doing the same thing with real estate (which I don't consider to be truly a stock sector), and bonds. If Vanguard had the equivalent of VT for bonds and real estate, I would use it. I'm not sma...