Search found 1948 matches

by IlliniDave
Tue May 17, 2016 10:54 am
Forum: Investing - Theory, News & General
Topic: For those of you in the Accumulation Phase - How often do you check?
Replies: 62
Views: 4757

Re: For those of you in the Accumulation Phase - How often do you check?

I check at least a couple times a week minimum because of identity theft concerns (or so I tell myself ;) ) When I was a young accumulator it wasn't uncommon for me to go a year or more without really paying attention. Now as a relatively late accumulator I'm a little more interested in how things a...
by IlliniDave
Mon May 16, 2016 5:34 pm
Forum: Investing - Theory, News & General
Topic: The inventor of the 401(k) says he created a ‘monster’
Replies: 28
Views: 4674

Re: The inventor of the 401(k) says he created a ‘monster’

I too have an employer with a great plan. I know some plans are substandard, but the monster has been very good to me and many people I know.
by IlliniDave
Sun May 15, 2016 5:07 pm
Forum: Investing - Theory, News & General
Topic: Roth 401(k) in a 28% bracket thoughts
Replies: 14
Views: 1762

Re: Roth 401(k) in a 28% bracket thoughts

That seems to be right (OP). The only caveat might be that if you don't have much room in the 25% bracket and stack enough additional years of traditional in there, you might not be able to convert it all at the lower rate within the 15 years. I applied the same thought exercise to my own situation ...
by IlliniDave
Thu May 12, 2016 6:56 am
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 about 70% bullish/neutral and 30% bearish. Hence my AA.
by IlliniDave
Thu May 12, 2016 4:36 am
Forum: Investing - Theory, News & General
Topic: WSJ Article Dividends Aren't the Answer, They're the Problem
Replies: 57
Views: 8906

Re: WSJ Article Dividends Aren't the Answer, They're the Problem

I'm hoping to get my withdrawal rate down to ~2% for ER. That way, I get to spend "just my dividend 'problem' " and be a "total return" investor all at the same time. I have no qualms about enjoying the best of both worlds. The cost, of course, is that you end up having worked l...
by IlliniDave
Wed May 11, 2016 8:26 am
Forum: Investing - Theory, News & General
Topic: WSJ Article Dividends Aren't the Answer, They're the Problem
Replies: 57
Views: 8906

Re: WSJ Article Dividends Aren't the Answer, They're the Problem

I'm hoping to get my withdrawal rate down to ~2% for ER. That way, I get to spend "just my dividend 'problem'" and be a "total return" investor all at the same time. I have no qualms about enjoying the best of both worlds.
by IlliniDave
Tue May 10, 2016 7:35 am
Forum: Personal Finance (Not Investing)
Topic: Any Farmers? Question about Leasing Land
Replies: 12
Views: 2064

Re: Any Farmers? Question about Leasing Land

There are two small pieces of farm property in my family. One that belongs to my dad, and another that was passed from my grandfather to my mom and her sister. Both have had steady lessees for decades, with no interruptions I'm aware of. But I think one of the keys is that in neither case were the l...
by IlliniDave
Tue May 10, 2016 5:01 am
Forum: Investing - Theory, News & General
Topic: liquid cash in retirement: keep 2-3 years of expenses?!
Replies: 17
Views: 2660

Re: liquid cash in retirement: keep 2-3 years of expenses?!

Having 5-10% (~1-2 year's worth) of portfolio in short-term, cash-like instruments is pretty standard advice for retirees. These guys are a little more conservative, and except for not being a high bravado approach, I don't see a huge issue with it. I'm skeptical that it will negate the volatility o...
by IlliniDave
Sun May 08, 2016 4:23 pm
Forum: Local Chapters and Bogleheads Community
Topic: HAPPY BIRTHDAY, MR. BOGLE! May 8, 2016
Replies: 52
Views: 3185

Re: HAPPY BIRTHDAY, MR. BOGLE! May 8, 2016

Many happy returns of the day to Mr. Bogle!
by IlliniDave
Sat May 07, 2016 7:58 am
Forum: Investing - Theory, News & General
Topic: Taxable Account - Bonds - Diversification vs. Tax
Replies: 47
Views: 5676

Re: Taxable Account - Bonds - Diversification vs. Tax

For me it's all about tax at this point, so what bonds I do have in my taxable account are tax-exempt. I really don't "need" bonds in taxable, but I use them for the second-tier of my emergency fund, and I like having some relatively stable assets in that account. Diversification. In my 40...
by IlliniDave
Fri May 06, 2016 4:17 am
Forum: Investing - Theory, News & General
Topic: How does Market Analysis affect your investment?
Replies: 9
Views: 700

Re: How does Market Analysis affect your investment?

I don't spend tons of time researching the topic. But one can't help hearing the many opinions of lower future returns. It has not affected how I invest because I don't see a prudent way to force the future to behave like the past (or in any other manner I might want). The effect such analysis has h...
by IlliniDave
Fri May 06, 2016 4:09 am
Forum: Personal Finance (Not Investing)
Topic: The crossover point [When can you retire?]
Replies: 59
Views: 9685

Re: The crossover point

I do my own calculation that takes into account other income sources (retirement annuity and SS) and compare my portfolio's income generating ability (based on a steady 3% withdrawal rate) to my current spending less the other income sources. I went "positive" about 2 months ago (yay!). I ...
by IlliniDave
Mon May 02, 2016 7:30 pm
Forum: Investing - Theory, News & General
Topic: What's a typical pension funding % ?
Replies: 30
Views: 3611

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: 2160

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: 2667

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: 4031

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: 1979

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: 2681

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: 131387

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: 66
Views: 6974

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: 5063

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: 10925

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: 4921

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: 4921

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: 937

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: 2093

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: 1354

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: 1706

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: 3080

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: 2934

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: 13815

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: 6929

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: 7274

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: 7274

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: 6582

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: 978

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: 2596

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: 1926

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: 6336

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: 9027

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: 1313

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: 1313

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: 10793

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: 8196

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: 3145

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: 8977

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: 8977

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: 1474

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: 3783

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: 4894

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...

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