Search found 5968 matches

by KlangFool
Mon Jul 24, 2017 8:14 am
Forum: Investing - Help with Personal Investments
Topic: Choosing asset allocation for young children
Replies: 7
Views: 550

Re: Choosing asset allocation for young children

OP, There is an important and unanswered question here. What happened to the investment if you are not around? I preferred a "Do Nothing" aka fund of funds approach in the tax-advantaged account. 1) I start with <<Vanguard STAR Fund (VGSTX)>> fund if the amount is less than 3K. 2) I will s...
by KlangFool
Mon Jul 24, 2017 7:24 am
Forum: Personal Consumer Issues
Topic: Anyone else extremely frugal?
Replies: 44
Views: 3173

Re: Anyone else extremely frugal?

I am not frugal. I save 1/4 to 1/3 of my income and spend the rest as efficiently as possible (by efficient I mean I spend in ways that bring me the most happiness). It helps that I make enough where I don't have to be frugal but life is too short. If our income doubled, our spending would double (...
by KlangFool
Sun Jul 23, 2017 6:10 pm
Forum: Personal Finance (Not Investing)
Topic: 4% mortgage rate vs 2.5% BND yield
Replies: 82
Views: 5643

Re: 4% mortgage rate vs 2.5% BND yield

There are a lot of comments here that aren't based on same assumptions or even definitions, so they shouldn't be compared. They could all be correct given their assumptions. And using funds that could be used to pay down mortgage carry different risks that are compensated differently, vs. taking ri...
by KlangFool
Sun Jul 23, 2017 4:50 pm
Forum: Personal Finance (Not Investing)
Topic: 4% mortgage rate vs 2.5% BND yield
Replies: 82
Views: 5643

Re: 4% mortgage rate vs 2.5% BND yield

Folks, I have a 300K 3.49% 30 years mortgage. I could pay it off anytime. My annual expense with the mortgage is 60K per year. My annual expense without the mortgage is 45K per year. My portfolio is approximately 60/40 and the annual returns average 7% per year . 1) If I do not pay off the mortgage...
by KlangFool
Sat Jul 22, 2017 9:40 pm
Forum: Personal Finance (Not Investing)
Topic: Thinking about buying a house in South Bay Area...
Replies: 33
Views: 2473

Re: Thinking about buying a house in South Bay Area...

San Jose is not Manhattan,and it is by no stretch of the imagination one of the great cities in the world.Who do you think is making all those cash offers by the way? The San Jose area is the Manhattan of the technology industry. The amount of wealth in Silicon Valley is staggering - one of the ric...
by KlangFool
Sat Jul 22, 2017 4:54 pm
Forum: Personal Finance (Not Investing)
Topic: Does anyone set portfolio goals and rewards?
Replies: 32
Views: 1734

Re: Does anyone set portfolio goals and rewards?

OP, I have my eyes set on buying a 3K to 5K foldable electric bike when I reach my FI number. KlangFool I hope you enjoy it. Congrats on your recent milestone btw. Have you ever treated yourself to something up to this point due to your progress? j7se, 1) I bought a $700 LG 34" curve monitor a...
by KlangFool
Sat Jul 22, 2017 3:04 pm
Forum: Personal Finance (Not Investing)
Topic: What's your personal savings rate?
Replies: 67
Views: 4839

Re: What's your personal savings rate?

OP, It is very simple but hard. 1) Save 1/3, spend 1/3, and pay 1/3 in tax. 2) Use "Pay Yourself First" to auto-deduct your pay check to all the saving and investment account. You live on 1/3 of your gross income. You cannot spend the money if you do not see it from your pay check at all....
by KlangFool
Sat Jul 22, 2017 1:36 pm
Forum: Personal Finance (Not Investing)
Topic: 4% mortgage rate vs 2.5% BND yield
Replies: 82
Views: 5643

Re: 4% mortgage rate vs 2.5% BND yield

Folks, I have a 300K 3.49% 30 years mortgage. I could pay it off anytime. My annual expense with the mortgage is 60K per year. My annual expense without the mortgage is 45K per year. My portfolio is approximately 60/40 and the annual returns average 7% per year. 1) If I do not pay off the mortgage a...
by KlangFool
Sat Jul 22, 2017 1:26 pm
Forum: Personal Finance (Not Investing)
Topic: Does anyone set portfolio goals and rewards?
Replies: 32
Views: 1734

Re: Does anyone set portfolio goals and rewards?

OP,

I have my eyes set on buying a 3K to 5K foldable electric bike when I reach my FI number.

KlangFool
by KlangFool
Sat Jul 22, 2017 1:18 pm
Forum: Personal Consumer Issues
Topic: Buying house - Very important decision
Replies: 195
Views: 13076

Re: Buying house - Very important decision

And he is right. The insurance and taxes will go up *lot* more than $30 per month year over year when you do buy a house. Anybody who tells you otherwise will be lying to you. Yup. After this decision, a lot of stress is taken off of us and we enjoyed dining at a very nice restaurant last night :ha...
by KlangFool
Sat Jul 22, 2017 1:13 pm
Forum: Personal Finance (Not Investing)
Topic: What's your personal savings rate?
Replies: 67
Views: 4839

Re: What's your personal savings rate?

OP, It is very simple but hard. 1) Save 1/3, spend 1/3, and pay 1/3 in tax. 2) Use "Pay Yourself First" to auto-deduct your pay check to all the saving and investment account. You live on 1/3 of your gross income. You cannot spend the money if you do not see it from your pay check at all. ...
by KlangFool
Fri Jul 21, 2017 6:28 pm
Forum: Personal Consumer Issues
Topic: Buying house - Very important decision
Replies: 195
Views: 13076

Re: Buying house - Very important decision

TareNeko wrote:Why the sad face? Is $30 a lot of money for you?
prettybogle wrote:Rent went up by about $30 per month :-(


TareNeko,

OP has a sad face because OP cannot justify his/her's house purchase with such a small rent increase.

KlangFool
by KlangFool
Fri Jul 21, 2017 5:13 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: REITs Aren't Special
Replies: 85
Views: 5637

Re: Larry Swedroe: REITs Aren't Special

Folks, I was investing on REIT (VGSIX). I no longer do that. The reason: REIT Privatization Wave. http://www.nreionline.com/mag/privatization-wave-hits-reits http://www.businesswire.com/news/home/20150730006386/en/Fitch-REIT-REOC-Privatization-Wave-Hit-Foreign Public REIT is a small segment of the o...
by KlangFool
Fri Jul 21, 2017 2:10 pm
Forum: Personal Consumer Issues
Topic: Buying house - Very important decision
Replies: 195
Views: 13076

Re: Buying house - Very important decision

PettyBogle, But so are Seattle, Denver, Austin, Raleigh, North NTC corridor, Portland, Salt Lake City, Phoenix which are actually far ahead. I do not think Nashville is even close as the tech jobs are concentrated in IT area rather than into product/start_ up/Cross-areas like biotech:manufacturing:...
by KlangFool
Thu Jul 20, 2017 9:16 pm
Forum: Personal Finance (Not Investing)
Topic: COBRA For 1 Month (?)
Replies: 11
Views: 526

Re: COBRA For 1 Month (?)

OP, At this moment, as per ACA, coverage gap may not matter. But, do you really want to take the risk that the new insurance claims that what ever health problem that show up later is a pre-existing condition and it happened during the gap? That was a major problem pre-ACA. I do not know whether it ...
by KlangFool
Thu Jul 20, 2017 9:07 pm
Forum: Personal Consumer Issues
Topic: Keurig vs coffeemaker - and the Keurig won
Replies: 53
Views: 3427

Re: Keurig vs coffeemaker - and the Keurig won

OP, How does this compare to cold brewed coffee in term of convenience and taste? I know it definitely cost a lot more. Cold brew coffee is more cost efficient than typical drip coffee. I have frozen coffee concentrate in my freezer. I brought my concentrate in an ice chest on my recent trip. If I ...
by KlangFool
Thu Jul 20, 2017 5:24 pm
Forum: Personal Finance (Not Investing)
Topic: 4% mortgage rate vs 2.5% BND yield
Replies: 82
Views: 5643

Re: 4% mortgage rate vs 2.5% BND yield

I don't see much difference between paying an extra $500 a month on my mortgage or buying $500 BND. Except the return on the mortgage is higher. Sure, I loose liquidity, but if I needed the liquidity I wouldn't buy either. There are just some things I'm not going to learn. Like the wisdom of borrow...
by KlangFool
Thu Jul 20, 2017 5:22 pm
Forum: Personal Finance (Not Investing)
Topic: 4% mortgage rate vs 2.5% BND yield
Replies: 82
Views: 5643

Re: 4% mortgage rate vs 2.5% BND yield

Because the question isn't mortgage vs total bond fund, the question is mortgage vs overall portfolio return. Why is that so? Let's for argument's sake assume that the expected return of stocks is 8% (that's probably on the high side) and the expected return of cash in a cookie jar is 0% (hard to a...
by KlangFool
Thu Jul 20, 2017 3:23 pm
Forum: Personal Consumer Issues
Topic: Investing well for Retirement can be frustrating
Replies: 52
Views: 3535

Re: Investing well for Retirement can be frustrating

OP,

I have many peers like that. And, whenever next round of lay off come around, they start to whine how they are going to survive if they are laid off. Meanwhile, I know that I can survive even if I am unemployed over the next 5 years. I "Slept Well At Night" (SWAN).

KlangFool
by KlangFool
Thu Jul 20, 2017 11:53 am
Forum: Personal Consumer Issues
Topic: Keurig vs coffeemaker - and the Keurig won
Replies: 53
Views: 3427

Re: Keurig vs coffeemaker - and the Keurig won

OP, How does this compare to cold brewed coffee in term of convenience and taste? I know it definitely cost a lot more. Cold brew coffee is more cost efficient than typical drip coffee. I have frozen coffee concentrate in my freezer. I brought my concentrate in an ice chest on my recent trip. If I ...
by KlangFool
Thu Jul 20, 2017 11:22 am
Forum: Personal Consumer Issues
Topic: Keurig vs coffeemaker - and the Keurig won
Replies: 53
Views: 3427

Re: Keurig vs coffeemaker - and the Keurig won

OP, How does this compare to cold brewed coffee in term of convenience and taste? I know it definitely cost a lot more. Cold brew coffee is more cost efficient than typical drip coffee. I have frozen coffee concentrate in my freezer. I brought my concentrate in an ice chest on my recent trip. If I n...
by KlangFool
Thu Jul 20, 2017 10:26 am
Forum: Investing - Theory, News & General
Topic: Slow, steady AA glide path as long as stocks hit new highs?
Replies: 21
Views: 1897

Re: Slow, steady AA glide path as long as stocks hit new highs?

^^^^I had similar thoughts during accumulation. But it seemed like a slippery slope, so I never strayed far (more than a few percent) from the mapped out glide path. As far as the glide path, what mattered most to me was the time from retirement, not age per se, and not portfolio value . But there ...
by KlangFool
Thu Jul 20, 2017 9:32 am
Forum: Investing - Theory, News & General
Topic: Slow, steady AA glide path as long as stocks hit new highs?
Replies: 21
Views: 1897

Re: Slow, steady AA glide path as long as stocks hit new highs?

OP, IMHO, there is a difference between rebalancing aka staying in a targeted AA and changing the AA. AA changes should only happen when the portfolio had increased significantly. In my system/model, since I am targeting for FI, the portfolio size is sized base on my current annual expense. So, AA c...
by KlangFool
Thu Jul 20, 2017 9:26 am
Forum: Investing - Theory, News & General
Topic: Slow, steady AA glide path as long as stocks hit new highs?
Replies: 21
Views: 1897

Re: Slow, steady AA glide path as long as stocks hit new highs?

^^^^I had similar thoughts during accumulation. But it seemed like a slippery slope, so I never strayed far (more than a few percent) from the mapped out glide path. As far as the glide path, what mattered most to me was the time from retirement, not age per se, and not portfolio value . But there ...
by KlangFool
Thu Jul 20, 2017 8:13 am
Forum: Investing - Help with Personal Investments
Topic: What to do after 401k and IRA max? Not found in wiki?
Replies: 12
Views: 709

Re: What to do after 401k and IRA max? Not found in wiki?

If you have an HSA available, that is also a tax-deferred savings vehicle. First, nice profile pic...stearman? Used to own a J3 ..fixed it up and sold it for profit--in my case, it was a good investment because I used it to learn to fly AND made some money back:) My company does offer an HSA, but I...
by KlangFool
Thu Jul 20, 2017 7:48 am
Forum: Investing - Help with Personal Investments
Topic: 529 plan and first child on the way
Replies: 11
Views: 707

Re: 529 plan and first child on the way

OP, You should use tax software to run a simulation on your tax situation. If you contribute to Trad. 401K and/or Trad. IRA, you may drop your taxable income low enough that you could qualify for tax credits. In those cases, besides not paying tax, you may get tax refunds. So, Roth IRA and 529 may n...
by KlangFool
Thu Jul 20, 2017 7:43 am
Forum: Investing - Help with Personal Investments
Topic: What to do after 401k and IRA max? Not found in wiki?
Replies: 12
Views: 709

Re: What to do after 401k and IRA max? Not found in wiki?

If you have an HSA available, that is also a tax-deferred savings vehicle. First, nice profile pic...stearman? Used to own a J3 ..fixed it up and sold it for profit--in my case, it was a good investment because I used it to learn to fly AND made some money back:) My company does offer an HSA, but I...
by KlangFool
Wed Jul 19, 2017 10:03 pm
Forum: Personal Finance (Not Investing)
Topic: Approaching major milestone, need cool-headed advice
Replies: 34
Views: 4636

Re: Approaching major milestone, need cool-headed advice

PoppyA wrote:Personally I think most people Mid career think seriously about quitting or finding new work. I think it is natural, and often passes.


PoppyA,

Yes. But, some folks have the financial resources to make it happened if they choose to.

KlangFool
by KlangFool
Wed Jul 19, 2017 9:17 pm
Forum: Personal Consumer Issues
Topic: Would you let your teenager spend all his savings on a gaming computer?
Replies: 114
Views: 5069

Re: Would you let your teenager spend all his savings on a gaming computer?

OP, This is a parenting decision/philosophy. A) Do you want your children to make as much mistake as possible while you are around to look over his shoulder? Or, B) You stop your children from making mistake but you would not know whether he learned from his mistake. Or, he will do the same mistake ...
by KlangFool
Wed Jul 19, 2017 9:10 pm
Forum: Personal Finance (Not Investing)
Topic: Approaching major milestone, need cool-headed advice
Replies: 34
Views: 4636

Re: Approaching major milestone, need cool-headed advice

OP, You are looking at 2 separate and independent decisions: 1) Sell the house and achieve Financial Independence status. 2) Retire and stop working. You can do (1) without (2). IMHO, you should sell the house and rent. Then, you have the financial resources to be FI. After that, you can pick and ch...
by KlangFool
Wed Jul 19, 2017 2:39 pm
Forum: Investing - Help with Personal Investments
Topic: Wellington VWELX or 3 fund portfolio
Replies: 20
Views: 3223

Re: Wellington VWELX or 3 fund portfolio

OP,

I do both.

KlangFool
by KlangFool
Wed Jul 19, 2017 8:54 am
Forum: Investing - Help with Personal Investments
Topic: Options for College Savings
Replies: 17
Views: 725

Re: Options for College Savings

My wife and want to start saving for our daughter’s (she’s almost 2 months old) college education. From what we have read there’s essentially two routes; either open up a 529 plan or open up an IRA. We initially are leaning towards a 529, we live in Massachusetts. Our state’s 529 plan allows for a ...
by KlangFool
Wed Jul 19, 2017 7:53 am
Forum: Personal Finance (Not Investing)
Topic: Maintaining Boglehead Outlier Edge Despite Affects of Group Trends
Replies: 7
Views: 875

Re: Maintaining Boglehead Outlier Edge Despite Affects of Group Trends

OP, Question: What if everyone in the country saves, what happened? One word answer: Singapore. Average gross saving rate = 44% http://data.worldbank.org/indicator/NY.GNS.ICTR.ZS http://nomadcapitalist.com/2013/03/31/top-5-countries-by-millionaires-per-capita/ <<2. Singapore Not far behind Hong Kong...
by KlangFool
Wed Jul 19, 2017 7:15 am
Forum: Investing - Help with Personal Investments
Topic: Personal Finance Milestone: 20 Times Annual Expense
Replies: 95
Views: 8205

Re: Personal Finance Milestone: 20 Times Annual Expense

KF, you are an inspiration. I am in the same situation as you were a bit while ago. My whole team got canned last month. I may be next. Any day. My industry is getting ravaged. I applied to hundreds of jobs last 2 months (any reader from Bay Area wants an eager beaver hardworking Product Manager, M...
by KlangFool
Tue Jul 18, 2017 9:44 pm
Forum: Personal Consumer Issues
Topic: Buying house - Very important decision
Replies: 195
Views: 13076

Re: Buying house - Very important decision

PettyBogle, But so are Seattle, Denver, Austin, Raleigh, North NTC corridor, Portland, Salt Lake City, Phoenix which are actually far ahead. I do not think Nashville is even close as the tech jobs are concentrated in IT area rather than into product/start_ up/Cross-areas like biotech:manufacturing:...
by KlangFool
Tue Jul 18, 2017 5:08 pm
Forum: Investing - Theory, News & General
Topic: The Quest for Perfection
Replies: 117
Views: 5676

Re: The Quest for Perfection

Long-term bond has a higher risk than short-term bond but lower return than stock. It has about the same level of risk as stock. From 1978 until now, the TSM had a std. dev. of 15.23%, while LTT's was 11.06%. TSM had a worst year loss of -37.4%, while LTT was -13.03%. I would not call that the &quo...
by KlangFool
Tue Jul 18, 2017 5:03 pm
Forum: Investing - Theory, News & General
Topic: The Quest for Perfection
Replies: 117
Views: 5676

Re: The Quest for Perfection

OP,

If you really care and worry about Black Swan, you should have some real physical gold. I kept some Gold jewelry for that reason.

KlangFool
by KlangFool
Tue Jul 18, 2017 5:01 pm
Forum: Investing - Theory, News & General
Topic: The Quest for Perfection
Replies: 117
Views: 5676

Re: The Quest for Perfection

Long-term bond has a higher risk than short-term bond but lower return than stock. It has about the same level of risk as stock. From 1978 until now, the TSM had a std. dev. of 15.23%, while LTT's was 11.06%. TSM had a worst year loss of -37.4%, while LTT was -13.03%. I would not call that the &quo...
by KlangFool
Tue Jul 18, 2017 4:59 pm
Forum: Investing - Theory, News & General
Topic: The Quest for Perfection
Replies: 117
Views: 5676

Re: The Quest for Perfection

OP, <<15% Passive Individual Stock Portfolio: About 30 Mega-Cap, Large-Value Individual Stocks. Buy & Hold Forever. Each should be about 0.5% of portfolio. Mostly Dow Stocks. This is intended to reduce portfolio expense ratio while also providing tax loss harvesting opportunities, as is discuss...
by KlangFool
Tue Jul 18, 2017 4:48 pm
Forum: Investing - Theory, News & General
Topic: The Quest for Perfection
Replies: 117
Views: 5676

Re: The Quest for Perfection

OP, You only have 10% in bond. You are only allowed 2 bond funds. Pick 2. KlangFool If I had to pick two bond funds, I'd go with: 5% Vanguard Total Bond 5% Vanguard Long-Term Bond Index Fund (VBLTX) This would probably accomplish most of the same objectives with somewhat higher simplicity. TD2626, ...
by KlangFool
Tue Jul 18, 2017 4:44 pm
Forum: Investing - Theory, News & General
Topic: The Quest for Perfection
Replies: 117
Views: 5676

Re: The Quest for Perfection

I realize that simplicity - say, holding only 3 funds - is nice, and reduces stress and work managing a portfolio. I am simply worried that having a portfolio that is, say, 100% Total World wouldn't be as good as a more complex portfolio like this one that is based on index funds, is quite low cost...
by KlangFool
Tue Jul 18, 2017 4:42 pm
Forum: Investing - Theory, News & General
Topic: The Quest for Perfection
Replies: 117
Views: 5676

Re: The Quest for Perfection

OP, <<15% Passive Individual Stock Portfolio: About 30 Mega-Cap, Large-Value Individual Stocks. Buy & Hold Forever. Each should be about 0.5% of portfolio. Mostly Dow Stocks. This is intended to reduce portfolio expense ratio while also providing tax loss harvesting opportunities, as is discusse...
by KlangFool
Tue Jul 18, 2017 4:38 pm
Forum: Investing - Theory, News & General
Topic: The Quest for Perfection
Replies: 117
Views: 5676

Re: The Quest for Perfection

OP,

You only have 10% in bond. You are only allowed 2 bond funds. Pick 2.

KlangFool
by KlangFool
Tue Jul 18, 2017 4:37 pm
Forum: Investing - Theory, News & General
Topic: The Quest for Perfection
Replies: 117
Views: 5676

Re: The Quest for Perfection

1) Write one paragraph per holding and explain why and how it makes any difference. Thanks for the feedback. I'll try to justify each holding. Stocks (85% total): A) 30% Vanguard Total World Stock Index Fund Total world is designed to provide globally cap weighted exposure to nearly all available e...
by KlangFool
Tue Jul 18, 2017 3:56 pm
Forum: Investing - Theory, News & General
Topic: The Quest for Perfection
Replies: 117
Views: 5676

Re: The Quest for Perfection

OP,

I have

1) Wellington Fund

2) International stock index

3) US stock index fund

4) Total bond market Index fund

5) Small Cap Value Index fund

6) Intermediate-term treasury bond fund

6 funds.

KlangFool
by KlangFool
Tue Jul 18, 2017 3:50 pm
Forum: Investing - Theory, News & General
Topic: The Quest for Perfection
Replies: 117
Views: 5676

Re: The Quest for Perfection

I feel as though the smaller allocations would serve to reduce fat tail risk / black swan risk. If there was some sort of problem with the main index funds that make up most of the portfolio - or if there was a problem with indexing in general - having the active funds could save the day. TD2626, I...

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