Search found 1936 matches

by IlliniDave
Mon May 02, 2016 7:30 pm
Forum: Investing - Theory, News & General
Topic: What's a typical pension funding % ?
Replies: 28
Views: 3066

Re: What's a typical pension funding % ?

I don't remember the exact numbers, but my company's statement came out today on the website and both the adjusted and unadjusted percentages of target were over 100% (I want to think about 103% and about 117%). I don't know if what they called "funding target" refers to something differen...
by IlliniDave
Mon May 02, 2016 6:41 am
Forum: Investing - Theory, News & General
Topic: Vanguard pushing active management?
Replies: 18
Views: 1880

Re: Vanguard pushing active management?

To my eye, Vanguard "active" funds in the aggregate (at least those I've looked at) seem to exist significantly on the passive side of the non-index fund continuum. In that small space is where I believe non-index funds can be competitive with index funds over the long haul after expenses....
by IlliniDave
Fri Apr 29, 2016 7:28 pm
Forum: Investing - Theory, News & General
Topic: “Markets Have ‘Borrowed’ Returns from the Future”
Replies: 17
Views: 2453

Re: “Markets Have ‘Borrowed’ Returns from the Future”

I don't understand enough about QE and what its role is to comment about it specifically, but any time PEs get above historical means I see it in exactly those terms--future returns have been borrowed (or collected early). Mean reversion is "paying them back". Conversely, when markets cras...
by IlliniDave
Wed Apr 27, 2016 6:34 am
Forum: Investing - Theory, News & General
Topic: Why not ETFs?
Replies: 57
Views: 3664

Re: Why not ETFs?

Very much like nisiprius said several items down his list, I started in a 401k with only mutual fund options, started a little taxable investing before there was such a thing as an ETF, and continue to go with the "product" I am comfortable with. To this day I have never simply bought a sh...
by IlliniDave
Sun Apr 24, 2016 4:48 am
Forum: Investing - Theory, News & General
Topic: how do people keep AA constant with ongoing contributions?
Replies: 23
Views: 1813

Re: how do people keep AA constant with ongoing contributions?

I don't fret over excessive AA precision. +/- 10% either way in overall allocation really doesn't make a huge difference to me. So I just do the best I can and accept that I'll drift at times. If something seems to be lagging I direct more new money into it and let it go at that. If stocks go on a m...
by IlliniDave
Wed Apr 20, 2016 11:20 am
Forum: Investing - Theory, News & General
Topic: A different look at the Shiller CAPE 10
Replies: 29
Views: 2483

Re: A different look at the Shiller CAPE 10

That was a good read. I'm glad I haven't stuffed everything in my mattress yet.
by IlliniDave
Wed Apr 20, 2016 6:00 am
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 826
Views: 129351

Re: What are you up YTD? [Year To Date]

This is ballpark, using a computation by fidelity and an estimate based on the data Vanguard supplies (dunno why they can't do a better job of computing a person's performance). I'm up 3.2% for the year, which feels like a miracle after the last couple years. Some of my play money bets inside my lit...
by IlliniDave
Sun Apr 17, 2016 2:26 pm
Forum: Investing - Theory, News & General
Topic: Got a Question for Jack Bogle? Post it Here.
Replies: 56
Views: 4929

Re: Got a Question for Jack Bogle? Post it Here.

Index funds have enjoyed remarkable growth/inflows in recent years. Is there a point at which they become too large to be effective. I don't mean taking over the market until it's 100% indexed, rather I've heard other "criticisms" tossed about. Things like excess "concentration risk&q...
by IlliniDave
Fri Apr 15, 2016 4:00 pm
Forum: Investing - Theory, News & General
Topic: If wall street is rigged and corrupt , why invest in it?
Replies: 64
Views: 4533

Re: If wall street is rigged and corrupt , why invest in it?

I don't think you can say wall street is rigged. There are corrupt elements, sure. There are certain "games" that go on in the world of money that probably are rigged to favor the house. The trick is to avoid playing those games. That's why we hear over-and-over from the good actors in the...
by IlliniDave
Thu Apr 14, 2016 8:08 pm
Forum: Personal Finance (Not Investing)
Topic: When was the most stressful financial time in your life?
Replies: 94
Views: 10274

Re: When was the most stressful financial time in your life?

Going through divorce and the first year or two after as an almost-broke full-time single parent with a heavy debt load. What I learned (limited to the general realm of finance): -While it's true you only live once, it's also true a dollar only spends once, and nothing about the future is guaranteed...
by IlliniDave
Thu Apr 14, 2016 4:00 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Spartan 500 Index Fund Dividend
Replies: 73
Views: 4720

Re: Fidelity Spartan 500 Index Fund Dividend

What I don't understand is how can Fidelity have a loss (if that's the case) and VTI not (they distributed dividends). Basically the same fund. Can think of a couple plausible things: It could be that fund flows into/out of the two funds are different enough that Fidelity was (possibly) forced to r...
by IlliniDave
Thu Apr 14, 2016 11:38 am
Forum: Investing - Theory, News & General
Topic: Fidelity Spartan 500 Index Fund Dividend
Replies: 73
Views: 4720

Re: Fidelity Spartan 500 Index Fund Dividend

What I don't understand is how can Fidelity have a loss (if that's the case) and VTI not (they distributed dividends). Basically the same fund. Can think of a couple plausible things: It could be that fund flows into/out of the two funds are different enough that Fidelity was (possibly) forced to r...
by IlliniDave
Thu Apr 14, 2016 11:30 am
Forum: Investing - Theory, News & General
Topic: Dealing with volatility
Replies: 8
Views: 837

Re: Dealing with volatility

I like these sorts of charts. It's a lesson that gets reinforced over time, and even though I'm approaching 30 years as an investor in US equities, it helps to see a graphical reminder. Nothing's guaranteed, of course, but it's good to recall that rough seas don't necessarily signal the end of the w...
by IlliniDave
Thu Apr 14, 2016 9:11 am
Forum: Investing - Theory, News & General
Topic: How do you measure which retirement income strategy is best? By Michael Kitces
Replies: 21
Views: 1986

Re: How do you measure which retirement income strategy is best? By Michael Kitces

It's a somewhat different/interesting way to visualize, but the differences in the three options make it a comparison between apples, oranges and bananas. But with a set of options it makes more sense to compare, you get a nice at-a-glance view across a number of dimensions. I've given a lot of thou...
by IlliniDave
Tue Apr 12, 2016 7:26 pm
Forum: Investing - Theory, News & General
Topic: Are Dividends a Substitute for Value?
Replies: 20
Views: 1273

Re: Are Dividends a Substitute for Value?

I kind of think of it the other way around, having some value index assets gives me a somewhat better dividend yield (in my tax-deferred/tax exempt accounts) which makes me feel like I'm "not missing anything" when talking with the number of people I know who are dedicated dividend investo...
by IlliniDave
Sat Apr 09, 2016 6:05 am
Forum: Investing - Theory, News & General
Topic: Do you use emerging markets bonds? If so, why?
Replies: 18
Views: 1628

Re: Do you use emerging markets bonds? If so, why?

I don't, simply because I don't see where they fit in for me. I'm sure they're a fine asset class for those who have a niche for them.
by IlliniDave
Fri Apr 08, 2016 7:39 am
Forum: Investing - Theory, News & General
Topic: Retirement
Replies: 32
Views: 2995

Re: Retirement

I am only 31 yrs. old so retirement for me is still a ways away. I was curious if you've ever met a person that simply does not want to retire b/c they love their job so much? Is this normal? I don't know that there is a "normal" for this. My dad was like that (taught chemistry at a CC), ...
by IlliniDave
Fri Apr 08, 2016 4:20 am
Forum: Investing - Help with Personal Investments
Topic: Is TLH too much work for you?
Replies: 32
Views: 2768

Re: Is TLH too much work for you?

This year I harvested enough losses to reduce my taxes by somewhere between $165 and $308. It took about 10 minutes. That corresponds to between $990/hr and $1,848/hr. I don't think anything is too much work for that kind of a tax-free hourly rate. :)
by IlliniDave
Thu Apr 07, 2016 7:30 pm
Forum: Investing - Theory, News & General
Topic: Are Bogleheads too conservative?
Replies: 135
Views: 13147

Re: Are Bogleheads too conservative?

Smart bogleheads are right at the point on the conservative-risky continuum that best fits their personal needs, aspirations, and temperaments. There is little uniformity among us, aside from being generally attuned to the effect of investment costs and the benefits of investing in relatively passiv...
by IlliniDave
Thu Apr 07, 2016 7:17 am
Forum: Personal Finance (Not Investing)
Topic: 50/ can I cross the finish line?
Replies: 51
Views: 6769

Re: 50/ can I cross the finish line?

I'm surprised so many people are in the dark about the cost of health care. I know exactly what health care costs because I'm already paying it. It's $1000 a month for a family of six pre-tax plus $6750 a year pre-tax. Total- $18K a year pre-tax, or something like $10K a year after-tax. I could pro...
by IlliniDave
Thu Apr 07, 2016 6:35 am
Forum: Investing - Theory, News & General
Topic: Are you planning to leave an "estate"?
Replies: 74
Views: 6851

Re: Are you planning to leave an "estate"?

I thought some more about this after I initially answered above. Aside from the age old "tradition" of such things, I guess I feel an amount of duty to at least try to pass something forward. I am at the young tail of baby boomers, and my generation has some ongoing complicity in passing t...
by IlliniDave
Wed Apr 06, 2016 7:53 am
Forum: Investing - Theory, News & General
Topic: Are you planning to leave an "estate"?
Replies: 74
Views: 6851

Re: Are you planning to leave an "estate"?

I desire to, in part for the same reason you mention. In order to have enough assets to weather a few nasty decades back-to-back ( a low probability event sequence) a person tends to be left with a growing pool of assets in the higher probability outcome that things go somewhere between not too terr...
by IlliniDave
Tue Apr 05, 2016 2:51 am
Forum: Personal Finance (Not Investing)
Topic: Leaving a LBYM lifestyle ["Living Below" to "Living At" Your Means]
Replies: 54
Views: 6409

Re: Leaving a LBYM lifestyle ["Living Below" to "Living At" Your Means]

You can easily afford the more expensive home. If you are currently saving $200K/year, and you put the $360K you get from the sale of your current home towards a down payment, you could pay off your mortgage in three years with your savings. That is what I would do, if I really wanted the new home....
by IlliniDave
Fri Apr 01, 2016 12:14 pm
Forum: Personal Finance (Not Investing)
Topic: Major Insurer Pulls a Fast One [Prudential changes terms for LTC inflation protection]
Replies: 4
Views: 958

Re: Major Insurer Pulls a Fast One

LTC might be the biggest hole in my financial future in the sense I have a hard time figuring out what to do about it. Can't decide if it's a good product for me or not, or if there are solid, reputable policies out there. But being unmarried I'm thinking I'll forgo it and risk a somewhat smaller es...
by IlliniDave
Fri Apr 01, 2016 9:26 am
Forum: Personal Finance (Not Investing)
Topic: sell now or wait for $35,000?
Replies: 16
Views: 2537

Re: sell now or wait for $35,000?

I need to pay $35,000 to my wife for equity division, unfortunately. I will use my brokerage account, and can do it today or wait? I guess nobody knows :?: Essentially, this makes your account leveraged. I was in a similar position with a 401k division (fixed dollar amount, not a percentage) in Nov...
by IlliniDave
Wed Mar 30, 2016 7:12 am
Forum: Investing - Theory, News & General
Topic: CDs vs Tax Exempt ETF for emergency money
Replies: 16
Views: 1880

Re: CDs vs Tax Exempt ETF for emergency money

When push comes to shove, everything I own is my emergency fund. I have a tiered approach. I keep a couple month's expenses in cash at my brick/mortar bank as dedicated emergency money. At this stage of my life that is an arguably pointless gesture from a logic perspective, but it is psychologically...
by IlliniDave
Mon Mar 28, 2016 5:36 am
Forum: Investing - Theory, News & General
Topic: Anyone else feeling a correction brewing?
Replies: 60
Views: 5948

Re: Anyone else feeling a correction brewing?

There's always something brewing it seems. Most of it is just media sensationalism and click bait. I'm always taking defensive action by saving and investing. And, along the lines of what someone astutely said above, one's AA should be set such that their personal needs to maintain a defensive postu...
by IlliniDave
Mon Mar 28, 2016 5:25 am
Forum: Investing - Theory, News & General
Topic: Financial burnout
Replies: 65
Views: 8660

Re: Financial burnout

Two years is not a long time in the big picture sense. What you don't say is what about your plan is burning you out, so specific advice is difficult. My secret is to put things on autopilot and don't think about them. A key to that is a good understanding of what the minimum you need to spend every...
by IlliniDave
Sun Mar 27, 2016 8:25 am
Forum: Personal Finance (Not Investing)
Topic: TaxAct and Form 8606
Replies: 20
Views: 1204

Re: TaxAct and Form 8606

Did you have a *Traditional* IRA with a balance > $0 at the start of 2015? No. If you had no tIRA balance going into the year that makes things simpler. All that is leading up to calculating your basis for the conversion from tIRA to Roth. With no pre-existing IRA balance to worry about, it's just ...
by IlliniDave
Sun Mar 27, 2016 7:36 am
Forum: Personal Finance (Not Investing)
Topic: TaxAct and Form 8606
Replies: 20
Views: 1204

Re: TaxAct and Form 8606

Did you have a *Traditional* IRA with a balance > $0 at the start of 2015? No. If you had no tIRA balance going into the year that makes things simpler. All that is leading up to calculating your basis for the conversion from tIRA to Roth. With no pre-existing IRA balance to worry about, it's just ...
by IlliniDave
Sun Mar 27, 2016 6:21 am
Forum: Personal Finance (Not Investing)
Topic: Financially, how have you done/doing vs. your parents?
Replies: 134
Views: 10486

Re: Financially, how have you done/doing vs. your parents?

It's difficult to compare because of very disparate goals. All I can say is that I have done differently then they have. My parents succeeded in the sense they have had the lifestyle they strove for. I'm on path to succeed relative to my goals. I have piled up more financial resources, and in some w...
by IlliniDave
Sun Mar 27, 2016 6:06 am
Forum: Personal Finance (Not Investing)
Topic: Your first $100k
Replies: 52
Views: 7913

Re: Your first $100k

I was ~34 when I got to $100K and ~39 when I got to $200K even though the dot-com crash happened in between (but that crash was bookended by extraordinary returns). I generally did not max contributions or anything through that time frame. As long as the markets are at least a little bit cooperative...
by IlliniDave
Fri Mar 25, 2016 10:58 am
Forum: Investing - Theory, News & General
Topic: Article by Michael Kitces makes the case that gov. bonds are a better diversifier than corporates (against the S&P500)
Replies: 34
Views: 3003

Re: Article by Michael Kitces makes the case that gov. bonds are a better diversifier than corporates (against the S&P50

I have both corporate bonds (high yield) and gov't bonds (much bigger portion via a total bond index fund). I'm a both/and kind of guy as opposed to either/or. I enjoy the higher yields during good times from the corporates, and the (based on past returns) sense of security from the gov't bonds duri...
by IlliniDave
Thu Mar 24, 2016 12:38 pm
Forum: Investing - Theory, News & General
Topic: Dave Ramsey's Investing Advice or: A Chris Hogan: America's Voice on Retirement Story
Replies: 55
Views: 8546

Re: Dave Ramsey's Investing Advice or: A Chris Hogan: America's Voice on Retirement Story

I'm generally forgiving of Ramsey because I think on balance the harm he does is far outweighed by the good, and I'm less cynical about his ELP programs than some (in the sense of him lining his own pockets with them). Hogan doesn't add anything at all except that he is a good motivational spokespe...
by IlliniDave
Thu Mar 24, 2016 11:46 am
Forum: Investing - Theory, News & General
Topic: Dave Ramsey's Investing Advice or: A Chris Hogan: America's Voice on Retirement Story
Replies: 55
Views: 8546

Re: Dave Ramsey's Investing Advice or: A Chris Hogan: America's Voice on Retirement Story

I'm generally forgiving of Ramsey because I think on balance the harm he does is far outweighed by the good, and I'm less cynical about his ELP programs than some (in the sense of him lining his own pockets with them). Hogan doesn't add anything at all except that he is a good motivational spokesper...
by IlliniDave
Wed Mar 23, 2016 4:09 pm
Forum: Investing - Theory, News & General
Topic: My current plan for retirement
Replies: 9
Views: 1452

Re: My current plan for retirement

That seems pretty reasonable, and is not terribly different than what I am doing except I'll probably be pulling 3%-4.5% from assets for 15 years (age 55 to 70) then about 0.5%-2.0% thereafter (depending on what's left after 15 years). In other words, much of my RMDs will just be reinvested in taxab...
by IlliniDave
Tue Mar 22, 2016 5:35 pm
Forum: Personal Finance (Not Investing)
Topic: How much is your allowance?
Replies: 40
Views: 3462

Re: How much is your allowance?

In my spending plan I have I think $50/mo for "entertainment" and about the same for "hobby". I'm easily (cheaply) amused. But, if there was something I really wanted that didn't fit those constraints, I'd probably make an adjustment to the plan so I could get it within I dunno, ...
by IlliniDave
Sun Mar 20, 2016 8:33 am
Forum: Investing - Theory, News & General
Topic: Jack Bogle [may have said] TIPS give you "income risk"
Replies: 58
Views: 4744

Re: Jack Bogle says TIPS give you "income risk"

One thing it's helpful to understand about Mr. Bogle is that he is firmly rooted in an era when people invested for the purpose of generating income (dividends and interest payments) every bit as much as in hopes of capital appreciation. Many of the ideas of that era are considered antiquated and na...
by IlliniDave
Sun Mar 20, 2016 6:22 am
Forum: Investing - Theory, News & General
Topic: Live long, spend freely
Replies: 32
Views: 6199

Re: Live long, spend freely

I'm in the camp that sees SWRs and similar schema simply as planning tools. For me their importance will largely end the day I pull the plug. Once I hit the non-paid-employment phase of my life I'll have to do my best to make prudent decisions on an ongoing basis. I am one of those odd ducks who can...
by IlliniDave
Fri Mar 18, 2016 7:53 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 2901
Views: 613725

Re: U.S. stocks in freefall

Hey everybody, Is the market back to a decent level now? I have no idea whether is up or down, I only know I have left my portfolio alone through all this. It has been so volatile I don't know if it is back up after the correction we had a couple months ago. Is it still in freefall? Does it matter?...
by IlliniDave
Fri Mar 18, 2016 6:31 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 2901
Views: 613725

Re: U.S. stocks in freefall

And in my case, DH and I have far less (far, far, far, far less) saved for retirement than most who post on this forum. (From what I read, though, there are quite a few in our situation who simply lurk.) We don't have enough assets to gamble. We do have enough in current and projected SS income and...
by IlliniDave
Wed Mar 16, 2016 4:18 am
Forum: Investing - Theory, News & General
Topic: How have your homes as investments done?
Replies: 154
Views: 11021

Re: How have your homes as investments done?

I live in flyover country. I plan to sell my house in the next 3 years and will be lucky to get 12%-15% more than I paid for it 18 years ago, and that will be half consumed by upgrade/repair work prior to selling. So as an investment it would be a clear loser given the sum total of interest expense,...
by IlliniDave
Mon Mar 14, 2016 4:33 am
Forum: Investing - Theory, News & General
Topic: Late Starters
Replies: 61
Views: 5381

Re: Late Starters

I started at about 25, which isn't all that much earlier than 31. I think the unfortunate circumstance of a divorce 20 years later more than wiped out anything I gained between 25 and 31. :( So I consider myself an honorary late starter. Still on track for an exit at 55 that should be comfortable by...
by IlliniDave
Fri Mar 11, 2016 1:29 pm
Forum: Investing - Theory, News & General
Topic: The Elusive Rebalancing Bonus, An Analysis
Replies: 104
Views: 7512

Re: The Elusive Rebalancing Bonus, An Analysis

To me the rebalancing bonus is keeping my risk level about right for me, and sating my need to do something in a way that minimizes the harm I do to myself.
by IlliniDave
Wed Mar 09, 2016 4:40 pm
Forum: Investing - Theory, News & General
Topic: What are disadvantages of maxing our retirement accounts?
Replies: 29
Views: 3709

Re: What are disadvantages of maxing our retirement accounts?

I don't think there's any fixed disadvantage as long as it doesn't put you in a bind trying to keep food on the table and such. The YOLO-driven folks will disagree, and if doing it makes you feel somehow deprived, then not maxing out won't be disastrous either. I've only maxed out during a minority ...
by IlliniDave
Tue Mar 08, 2016 5:53 am
Forum: Investing - Theory, News & General
Topic: VG Precious Metals & Mining Fund up 21% this year. Why aren't other ETFs?
Replies: 48
Views: 1420

Re: VGPMX [Vanguard Precious Metals And Mining Fund]

I sunk a year's worth of backdoor Roth into this in early 2014 when I thought it looked cheap. It was a pretty painful two years. I rebalanced back into it last month, and since then it's outgrown everything else in the Roth. It's still a net losing position for me, just less so. Two years is a shor...
by IlliniDave
Mon Mar 07, 2016 5:00 am
Forum: Investing - Theory, News & General
Topic: Sigh. IlliniDave = Market Timer (VGENX) [Vanguard Energy Fund]
Replies: 43
Views: 5519

Re: Sigh. IlliniDave = Market Timer (VGENX) [Vanguard Energy Fund]

Nice, it looks like it's outperformed the total US index by 10% in the past month and a half. Next thing we know, Dave will be starting the ILDVX mutual fund. Do it and I'll give you a percent of my AA! :D LOL! I didn't realize it had done quite so well. If it keeps that up for 5-10 years ... 8-)
by IlliniDave
Sat Mar 05, 2016 9:14 am
Forum: Personal Finance (Not Investing)
Topic: How much fed tax do you withhold?
Replies: 22
Views: 1816

Re: How much fed tax do you withhold?

I tend to shoot for ~105-110%, which usually leaves me with a small refund once all my 1099-Div, and 1099-B's come in. I'm sure it is some sort of cognitive shortcoming, but I hate having to pay anything in April.
by IlliniDave
Fri Mar 04, 2016 5:13 pm
Forum: Investing - Theory, News & General
Topic: Poll: Active Funds in Which You Invest
Replies: 76
Views: 4581

Re: Poll: Active Funds in Which You Invest

Vanguard Healthcare, Precious Metals/Mining, Energy, Capital Opportunity Fund, High Yield Bonds and Intermediate-term Muni Bonds. All but the muni-bond fund are in my small Roth which is where I try to "beat the market".
by IlliniDave
Fri Mar 04, 2016 8:56 am
Forum: Investing - Theory, News & General
Topic: 100% US Equities argument: "We spend in Dollars"
Replies: 49
Views: 4454

Re: 100% US Equities argument: "We spend in Dollars"

My take on the statement, is that it's just emphasizing the unnecessary currency risk. This is my take as well. It's what Bogle talks about in his writing. He presents a case that the main difference between US returns for a US investor and Developed ex-US markets for US investors is currency fluct...

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