Search found 6057 matches

by KyleAAA
Mon May 22, 2017 5:14 pm
Forum: Investing - Help with Personal Investments
Topic: Yet Another Real Estate vs Stock Market Thread
Replies: 28
Views: 1383

Re: Yet Another Real Estate vs Stock Market Thread

Or Napoleon to his generals "First and foremost, you must be lucky". ;-). The underlined bit gets to the nub of this. It's knowing what you are buying and buying well that makes you the money. So you can't compare it to an equity index investment, where one lets the market efficiency do t...
by KyleAAA
Mon May 22, 2017 6:30 am
Forum: Investing - Help with Personal Investments
Topic: Yet Another Real Estate vs Stock Market Thread
Replies: 28
Views: 1383

Re: Yet Another Real Estate vs Stock Market Thread

Your analysis seems to ignore appreciation (I'd expect values to go up with inflation) and your example is, at best, a marginal deal a lot of investors wouldn't bother with. But the main thing you're ignoring is the availability of cheap, safe, long-term, fixed-rate leverage. Good RE investors routi...
by KyleAAA
Sat May 20, 2017 10:25 am
Forum: Investing - Help with Personal Investments
Topic: REITs: Count as Stocks or Bonds?
Replies: 49
Views: 2795

Re: REITs: Count as Stocks or Bonds?

On a somewhat-related note, REIT fundamentals are in better shape than they've been since 2000. A big deal is made of leverage being the reasons REITs are more volatile than stocks, but REITs as a general rule aren't actually all that leveraged outside of the obvious exception of the run up to the R...
by KyleAAA
Sat May 20, 2017 9:50 am
Forum: Investing - Help with Personal Investments
Topic: Intermediate vs Short Term TIPS Fund
Replies: 12
Views: 1043

Re: Intermediate vs Short Term TIPS Fund

With such a low allocation to equities yes, I think it would be wise to inflation-protect a significant portion of your fixed-income allocation. Half of fixed income would be well within the realm of reasonable (I use half, myself). Intermediate term is consistent with what you've already chosen. I ...
by KyleAAA
Thu May 18, 2017 5:54 pm
Forum: Investing - Help with Personal Investments
Topic: REITs: Count as Stocks or Bonds?
Replies: 49
Views: 2795

Re: REITs: Count as Stocks or Bonds?

I count them as Real Estate. But if I had to classify them as stocks or bonds, I would definitely choose stocks. They are very volatile.
by KyleAAA
Tue May 16, 2017 8:47 pm
Forum: Investing - Help with Personal Investments
Topic: Tilting/Factors: My Conclusions (Challenges welcome)
Replies: 48
Views: 2517

Re: Tilting/Factors: My Conclusions (Challenges welcome)

Re: your cons,it's relatively easy to figure out how well a fund has captured factors in the past and how likely it is to capture a significant amount in the future, although the exposures do drift within a range over time. You'll have to read the prospectus to find out the methodology used, but it'...
by KyleAAA
Tue May 16, 2017 10:59 am
Forum: Personal Finance (Not Investing)
Topic: Is it legal to use a first mortgage for an investment property?
Replies: 40
Views: 2093

Re: Is it legal to use a first mortgage for an investment property?

It's 100% legal so long as your neighbor didn't lie about the intent to live in the home. Most banks require you to agree to live in the house for at least a year before turning it into a rental, but if somebody ends up renting it out sooner it isn't a criminal issue, it's a contract issue. Perhaps ...
by KyleAAA
Mon May 15, 2017 11:39 am
Forum: Investing - Theory, News & General
Topic: Home Country Bias...makes sense?
Replies: 229
Views: 7686

Re: Home Country Bias...makes sense?

To use the historical record (1900-present) as evidence that the US is likely to outperform going forward, you'd need to assume America's standing on the world stage is similar to what it was in 1900. That, of course, is ridiculous. According to this random link I found, the US made up about 15% of ...
by KyleAAA
Sun May 14, 2017 3:26 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a luxury car (how dumb would it be to do this?)
Replies: 213
Views: 16565

Re: Buying a luxury car (how dumb would it be to do this?)

OP, of course you can afford it. But you are sorely mistaken if you think the x5 is 'fun' or truly 'luxury'. It's a people hauler. My advice - buy a cheap people hauler but buy yourself another fun car. Which leads us inexorably to the only logical answer that all car threads eventually converge to...
by KyleAAA
Sun May 14, 2017 10:03 am
Forum: Investing - Help with Personal Investments
Topic: Is there any reason I should invest any additional money into bonds?
Replies: 29
Views: 2482

Re: Is there any reason I should invest any additional money into bonds?

I think it depends on how much larger your portfolio is than what you think you will need. Do you have 4x more than you will reasonably need to retire comfortably? Put it all in small value for all I care. Are you at 1.3x? Better have some bonds. It sounds like you're more in camp A, so this is prob...
by KyleAAA
Sun May 14, 2017 9:56 am
Forum: Investing - Help with Personal Investments
Topic: 100% Total International (0% US equity) for new investor?
Replies: 36
Views: 2360

Re: 100% Total International (0% US equity) for new investor?

Stock markets spend a substantial amount of time either at or within 5% of their all time highs. That is, the fact that he US market is at an all time high tells you absolutely nothing useful, so don't bother trying to make any decisions based on it. Staying diversified is always the best choice. 50...
by KyleAAA
Fri May 12, 2017 9:16 pm
Forum: Personal Consumer Issues
Topic: The Wall Street Journal to close Google loophole entirely
Replies: 121
Views: 15084

Re: The Wall Street Journal to close Google loophole entirely

Agree these sorts of workarounds are immoral. WSJ is offering you access on their terms. Just because you can technically bypass their reasonable efforts to keep you out doesn't make it okay. This is clear-cut theft. No gray area at all.
by KyleAAA
Thu May 11, 2017 1:36 pm
Forum: Personal Consumer Issues
Topic: Cost of car compared to Gross Income
Replies: 138
Views: 12129

Re: Cost of car compared to Gross Income

My current car was about 13% of my then-household income a few years ago (income is significantly higher, these days). Wife also bought a car around the same time for roughly 10% of household income. So in total, about 23-25% at the time of purchase, I'd say. Plan to drive both of them for 10 years ...
by KyleAAA
Tue May 09, 2017 12:08 pm
Forum: Investing - Help with Personal Investments
Topic: Where to park my fat stacks [money]?
Replies: 20
Views: 2217

Re: Where to park my fat stacks [money]?

To get 2% real I think you need at least 40% in equities with today's low interest rates. That said, $150k is less than 2% of 8 million so from a safe withdrawal rate perspective, it almost doesn't matter what you invest in. You could invest 100% in equities and only spend the dividends and be just ...
by KyleAAA
Tue May 09, 2017 9:09 am
Forum: Investing - Theory, News & General
Topic: Can 8% rental income help my Early Retirement?
Replies: 35
Views: 3059

Re: Can 8% rental income help my Early Retirement?

I find that incredibly difficult to believe. Managing 10 properties should be significantly less work than a part-time job even if you're doing it yourself (< 3 or 4 hours per month unless the stars really align against you, which isn't common), and practically no work (< 30 minutes per month) if y...
by KyleAAA
Tue May 09, 2017 6:11 am
Forum: Investing - Theory, News & General
Topic: If everybody indexed, the only word you could use is chaos, catastrophe
Replies: 48
Views: 6186

Re: If everybody indexed, the only word you could use is chaos, catastrophe

If everyone else indexed, I would become an active trader and make a fortune. I really hope that happens.
by KyleAAA
Mon May 08, 2017 2:51 pm
Forum: Investing - Theory, News & General
Topic: Can 8% rental income help my Early Retirement?
Replies: 35
Views: 3059

Re: Can 8% rental income help my Early Retirement?

Taking care of rental properties is a job. So my question would be: Why are you taking on a new job in order to retire from a job. If you wanted to stay in a job, likely the one you're currently in pays more than the rental gig per hour. Perhaps stay in your current job and put the money into a 50/...
by KyleAAA
Mon May 08, 2017 6:23 am
Forum: Investing - Theory, News & General
Topic: Can 8% rental income help my Early Retirement?
Replies: 35
Views: 3059

Re: Can 8% rental income help my Early Retirement?

If you can actually find a property with an 8% cap rate in a decent location, sure. Those might be hard to find in desirable neighborhoods if you lack experience, though. You can easily find them in undesireable neighborhoods but you'll be really earning your paycheck at that point.
by KyleAAA
Sat May 06, 2017 10:45 am
Forum: Personal Consumer Issues
Topic: Honda vs. Mazda vs. Ford
Replies: 40
Views: 2731

Re: Honda vs. Mazda vs. Ford

Honda is...fine. Most (not all!) model years are extremely reliable but they aren't particularly sporty or fun to drive. Better than Toyota, but still more on the appliance side of things I take it you have never driven an older Civic Si, Type R, or an Acura Integra/RSX. Every bit as fun as the Maz...
by KyleAAA
Sat May 06, 2017 8:56 am
Forum: Personal Consumer Issues
Topic: Honda vs. Mazda vs. Ford
Replies: 40
Views: 2731

Re: Honda vs. Mazda vs. Ford

The Mazda is definitely the sportiest of the options you mentioned and reliability should be pretty close to that of Honda. If you're going to go with a Ford and want sporty, I'd recommend looking at the Focus instead of the Fusion. You can get both the Mazda3 and Focus as a hatchback. I own a Mazda...
by KyleAAA
Sat May 06, 2017 8:29 am
Forum: Investing - Theory, News & General
Topic: value stocks in taxable
Replies: 8
Views: 499

Re: value stocks in taxable

The smaller and more valuey of the small-cap value ETFs (like IJS and VIOV) tend to be every bit as tax efficient as the total market ETFs. In fact, IJS has been MORE tax-efficient than VTI over the past 10 and 15 year periods. Those that delve more into mid-cap territory, like Vanguard's VBR, tend ...
by KyleAAA
Fri May 05, 2017 11:43 am
Forum: Investing - Theory, News & General
Topic: Crowd funded real estate?
Replies: 32
Views: 2434

Re: Crowd funded real estate?

I've also been exploring, dabbling in, investing in crowdfunded real estate the last few years. I wrote a big blog post about it a little while ago which detailed my returns so far, successes, disappointments etc. Far more work than just buying some REIT index fund. Hopefully worth it. To be honest...
by KyleAAA
Fri May 05, 2017 10:03 am
Forum: Investing - Help with Personal Investments
Topic: Retirement Allocation
Replies: 15
Views: 1215

Re: Retirement Allocation

Overall, I like your portfolio. It is more conservative than I would use, but that's fine. I would likely add a 10-15% allocation to TIPS since you are only 40% equities and no real estate.
by KyleAAA
Thu May 04, 2017 8:07 pm
Forum: Investing - Theory, News & General
Topic: Crowd funded real estate?
Replies: 32
Views: 2434

Re: Crowd funded real estate?

Most of these investments return in the neighborhood of 10%. Good, but not "this is suspicious, too good to be true" good. The argument that you're paying for a liquidity premium with REIT seems to be a logical one. I like Realty Shares because of the 4k or 5k investment minimums vs 25k o...
by KyleAAA
Thu May 04, 2017 9:20 am
Forum: Investing - Help with Personal Investments
Topic: Too much Money?
Replies: 40
Views: 7111

Re: Too much Money?

$1,512,824 will definitely NOT generate $9,600 monthly. At least, it won't generate that much you can spend. The rule of thumb is that you can withdraw 4% of your portfolio (inflation adjusted) each year, so more like $5k per month.
by KyleAAA
Wed May 03, 2017 4:14 pm
Forum: Personal Consumer Issues
Topic: Where to Live on $60K or Less a Year?
Replies: 213
Views: 17821

Re: Where to Live on $60K or Less a Year?

Atlanta, Georgia -- The Midtown area seems walkable and there are some minor family considerations to the area. It might serve well as a "home base" to use as a place to keep one's things and return to in between stints of traveling the world, but such a plan is probably more theoretical ...
by KyleAAA
Wed May 03, 2017 4:08 pm
Forum: Personal Consumer Issues
Topic: Visiting Paris for 8 days - what to do?
Replies: 47
Views: 2929

Re: Visiting Paris for 8 days - what to do?

Yes, you should get out of Paris. Lyon is lovely.
by KyleAAA
Wed May 03, 2017 3:47 pm
Forum: Investing - Help with Personal Investments
Topic: Income has increased drastically! What to do now?
Replies: 18
Views: 2184

Re: Income has increased drastically! What to do now?

Either taxable brokerage account or more rental properties if you can find a good deal. Ideally you'd do plenty of both.
by KyleAAA
Wed May 03, 2017 3:44 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a luxury car (how dumb would it be to do this?)
Replies: 213
Views: 16565

Re: Buying a luxury car (how dumb would it be to do this?)

You can so easily afford this car it's a bit ridiculous you have to ask. Go buy it.
by KyleAAA
Tue May 02, 2017 1:41 pm
Forum: Personal Consumer Issues
Topic: Where to Live on $60K or Less a Year?
Replies: 213
Views: 17821

Re: Where to Live on $60K or Less a Year?

The far-northern suburbs of Atlanta fit that bill (it's considerably cooler as you get closer to the mountains), as do Chattanooga and Greenville, SC. From your list, Colorado Springs and Nashville would be intriguing choices for me as well. Atlanta would likely be your best overall fit.
by KyleAAA
Tue May 02, 2017 1:34 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Real Estate vs CREF Equity Index
Replies: 61
Views: 3103

Re: TIAA Real Estate vs CREF Equity Index

Those returns look fairly equity-like to me! If by that you mean they are higher than expected, I agree. To me TREA returns differ in the range of returns (e.g., TREA may not have 30%+ return, like equities had in 2013). Yet, I am often wrong! :sharebeer Equities from 2010-2016 2010: 14.82% 2011: 2...
by KyleAAA
Tue May 02, 2017 11:17 am
Forum: Investing - Help with Personal Investments
Topic: TIAA Real Estate vs CREF Equity Index
Replies: 61
Views: 3103

Re: TIAA Real Estate vs CREF Equity Index

As others have mentioned, TIAA Real Estate does not return equity like returns. However, it has exceeded my expectation (4-5%) since I began contributing to TREA in 2010 (see the returns I have tracked during those years below). I view it as my one real estate investment. This year, it is not "...
by KyleAAA
Mon May 01, 2017 8:35 am
Forum: Investing - Help with Personal Investments
Topic: Sleep well or not ? [Vanguard Intermediate-Term Tax-Exempt]
Replies: 45
Views: 6344

Re: Sleep well or not ? [Vanguard Intermediate-Term Tax-Exempt]

Data point. During a crash, stocks can lose 50-90%, bonds can lose 5-15%. Stock/bond crashes not typically coincidental. Bottom line. Don't sweat owing good bonds. I have heard this mentioned before that stocks can loose 50-90%. Is there any historical data that can back this up? It seems a very bo...
by KyleAAA
Mon May 01, 2017 7:46 am
Forum: Personal Consumer Issues
Topic: Wrist based heart rate monitors
Replies: 35
Views: 2192

Re: Wrist based heart rate monitors

The wrist-based monitors don't work as well as the chest strap monitors. That said, unless you have a heart condition that requires careful monitoring OR are a serious athlete who needs pinpoint HR insight for training purposes, you won't notice the difference. If you really push yourself up into th...
by KyleAAA
Thu Apr 27, 2017 7:38 pm
Forum: Investing - Help with Personal Investments
Topic: Stay Out Of REITs?
Replies: 35
Views: 4538

Re: Stay Out Of REITs?

People have been worrying about buying stocks at all time high for 5 or 6 years now. Those who bought are glad they did.
by KyleAAA
Thu Apr 27, 2017 7:36 pm
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 106
Views: 9609

Re: "Invited" to change to Vang Brokerage

You get $500k in SIPC coverage with the brokerage account. Does anyone know if this is $500k for all accounts a customer holds at one institution, or is it $500k limit per brokerage account (IRA, Roth, taxable, etc.) per customer? I found Vanguard's page on account protection, but it is really vagu...
by KyleAAA
Thu Apr 27, 2017 5:15 pm
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 106
Views: 9609

Re: "Invited" to change to Vang Brokerage

You get $500k in SIPC coverage with the brokerage account.
by KyleAAA
Thu Apr 27, 2017 2:39 pm
Forum: Investing - Help with Personal Investments
Topic: Equity crowdfunding/investing in tech startups
Replies: 7
Views: 724

Re: Equity crowdfunding/investing in tech startups

Unless your net worth is in the $10million+ range and you can afford to lose a lot, I wouldn't more than 5% of my portfolio in something like that. You're probably much better off investing in real estate for the time being.
by KyleAAA
Mon Apr 24, 2017 9:09 am
Forum: Investing - Help with Personal Investments
Topic: Why is Real-Estate so Bad?
Replies: 113
Views: 8947

Re: Why is Real-Estate so Bad?

My overall conclusion about real estate is that what makes it "so bad" is that it's us, the little guys, competing with the economy of scale of the big guys. The era where Grandpa could accumulate a fortune buying duplexes is pretty much over. Because with computers and automation, the li...
by KyleAAA
Mon Apr 24, 2017 9:04 am
Forum: Investing - Help with Personal Investments
Topic: Why is Real-Estate so Bad?
Replies: 113
Views: 8947

Re: Why is Real-Estate so Bad?

Real estate investing isn't bad. It's a valid way to invest one's money and time. Stocks and bonds are an equally valid way to invest one's money. Paper assets produce regular cash flow just like real estate so I'm not really sure your family understands how the stock market works. It would be smart...
by KyleAAA
Sat Apr 22, 2017 8:43 pm
Forum: Personal Finance (Not Investing)
Topic: please advise- are we on target ?
Replies: 17
Views: 1482

Re: Are we on track to meet our goals ?

I don't think you're on track. Can you lower your expenses at all? The numbers on those rentals seem pretty bad: works out to less than a 4% cap rate?
by KyleAAA
Mon Apr 17, 2017 12:06 pm
Forum: Investing - Help with Personal Investments
Topic: Sitting on Cash
Replies: 24
Views: 3569

Re: Sitting on Cash

Being debt-averse isn't generally a bad thing, but it becomes bad if it prevents you from making otherwise rational decisions. You have 50% saved for a downpayment and yet you want to continue saving for a house rather than retirement even though you only have $50k saved for retirement. Why? Debt is...
by KyleAAA
Mon Apr 17, 2017 10:35 am
Forum: Investing - Theory, News & General
Topic: Is it necessary to diversify across Factors?
Replies: 123
Views: 6849

Re: Is it necessary to diversify across Factors?

But aside from those practical issues, if a multi-factor model proves predictive, it will mean the subsets of stocks it predicted were expected to outperform the TSM did in fact outperform the TSM. Multifactor modeling does not provide predictions of performance of the factors, it simply describes ...
by KyleAAA
Sun Apr 16, 2017 8:42 pm
Forum: Investing - Theory, News & General
Topic: Is it necessary to diversify across Factors?
Replies: 123
Views: 6849

Re: Is it necessary to diversify across Factors?

Necessary, no. Smart, yes. The case for factor investing is as strong as the case for equity investing IMO (which you've apparently already accepted). But of course, it isn't strictly necessary to invest your savings in anything. I wonder how strong the case is. Many of my favorite authors are not ...
by KyleAAA
Sun Apr 16, 2017 6:22 pm
Forum: Investing - Theory, News & General
Topic: Is it necessary to diversify across Factors?
Replies: 123
Views: 6849

Re: Is it necessary to diversify across Factors?

Necessary, no. Smart, yes. The case for factor investing is as strong as the case for equity investing IMO (which you've apparently already accepted). But of course, it isn't strictly necessary to invest your savings in anything. I wonder how strong the case is. Many of my favorite authors are not ...
by KyleAAA
Sun Apr 16, 2017 1:57 pm
Forum: Investing - Help with Personal Investments
Topic: Why invest in International Index Fund?
Replies: 39
Views: 3506

Re: Why invest in International Index Fund?

Yes, the last 20 years has been kind to US stocks. What about the previous 20 years? These comparisons are very sensitive to start and end dates Even within the last 20 years there were long periods of time where international outperformed. In fact, by your exact logic you'd have chosen to avoid US ...
by KyleAAA
Sun Apr 16, 2017 9:16 am
Forum: Investing - Theory, News & General
Topic: Is it necessary to diversify across Factors?
Replies: 123
Views: 6849

Re: Is it necessary to diversify across Factors?

Necessary, no. Smart, yes. The case for factor investing is as strong as the case for equity investing IMO (which you've apparently already accepted). But of course, it isn't strictly necessary to invest your savings in anything.
by KyleAAA
Fri Apr 14, 2017 4:17 pm
Forum: Personal Finance (Not Investing)
Topic: Dealership rejecting rebate after contract signed
Replies: 100
Views: 10322

Re: Dealership rejecting rebate after contract signed

Just to reiterate, the people who are telling you to ignore the demand are giving you bad advice. They can and will repossess the car and you'll be left dealing with the consequences. Don't do that. Go read what you signed and I 100% guarantee you don't have a leg to stand on. This kind of situation...
by KyleAAA
Fri Apr 14, 2017 11:29 am
Forum: Investing - Help with Personal Investments
Topic: Best 2050 Target Date Fund
Replies: 20
Views: 1734

Re: Best 2050 Target Date Fund

The T Rowe Price funds are perfectly decent but I wouldn't prefer them to Vanguard's.

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