Search found 12617 matches

by Rodc
Tue Jul 26, 2016 8:15 pm
Forum: Personal Consumer Issues
Topic: Winter Tires: Yay or Nay
Replies: 34
Views: 1163

Re: Winter Tires: Yay or Nay

With Front wheel drive, I just use all season. Long ago, when I had RWD, I used snow tires with studs. If I lived in Colorado, in the Rockies, I'd probably have snow tires, 4WD and chains in the trunk. That would probably be overkill for Colorado unless you live in a remote area. Any main road in C...
by Rodc
Tue Jul 26, 2016 8:03 pm
Forum: Investing - Theory, News & General
Topic: Declining or Rising equity allocation in retirement?
Replies: 107
Views: 6216

Re: Declining or Rising equity allocation in retirement?

I own longinvest an apology. I found the write up on my home computer and my memory was faulty. I owe the rest of you an apology too. From the paper no longer on-line: I used the Global Financial Data real total returns monthly database for both the S&P 500 and 10-year US Government bonds, 1900 ...
by Rodc
Tue Jul 26, 2016 4:02 pm
Forum: Personal Consumer Issues
Topic: Winter Tires: Yay or Nay
Replies: 34
Views: 1163

Re: Winter Tires: Yay or Nay

FWIW: I agree good snow tires are better and while something of a hassle are not that big of a hassle. And other than the cost of some wheels from the junk yard not really more costly as long as you wear out tires before they dry rot. I have at time use set of snow tires in the winter. I may again. ...
by Rodc
Tue Jul 26, 2016 2:13 pm
Forum: Investing - Theory, News & General
Topic: Declining or Rising equity allocation in retirement?
Replies: 107
Views: 6216

Re: Declining or Rising equity allocation in retirement?

I can't understand why you would have rising equity in retirement? Even in scenarios where you're so rich you'd want 100% stocks in retirement.. it seems like you'd want 100% stocks in the accumulation phase, too. No matter how high your ability to take risk is at retirement, it's higher earlier. T...
by Rodc
Tue Jul 26, 2016 1:27 pm
Forum: Personal Finance (Not Investing)
Topic: Any retirees here who have been life-long renters?
Replies: 56
Views: 4298

Re: Any retirees here who have been life-long renters?

One final point: I think the saying "renting is throwing money away" is very inaccurate. You are paying for a place to live (which is hardly throwing money away), which you also do when you buy. Yes, a (relatively small, especially in the first several years) portion of your housing costs...
by Rodc
Tue Jul 26, 2016 1:10 pm
Forum: Investing - Theory, News & General
Topic: Improving Vanguard small cap value by shorting REITs?
Replies: 17
Views: 1328

Re: Improving Vanguard small cap value by shorting REITs?

Seems way too complicated.

Just buy a SV fund with low or no REITS.

Or figure if it contains 10% REITS and your SV allocation is 20% of your portfolio (high for most) this means 2% in REITS overall.

Not worth worrying about.
by Rodc
Tue Jul 26, 2016 1:03 pm
Forum: Personal Finance (Not Investing)
Topic: Rules of Thumb: Max House Value as % of Net Worth?
Replies: 73
Views: 4418

Re: Rules of Thumb: Max House Value as % of Net Worth?

Engineer250 wrote:
Rodc wrote:No that is not how it works. The Southern guy makes $100K per year and Engineer makes $1.4M.


Clearly my math skills do not justify the income. :oops:

Now you know what all the people who complain about overpayed gov'ment workers are talking about. :P


We understood, just having fun. :)
by Rodc
Tue Jul 26, 2016 1:01 pm
Forum: Personal Consumer Issues
Topic: Winter Tires: Yay or Nay
Replies: 34
Views: 1163

Re: Winter Tires: Yay or Nay

Note that not all all-season tires are created equal. I once had some Uniroyal Tiger Paw tires on my 1987 Accord. They had aggressive snow tire like tread and were amazing in the snow. But they were noisy. (note they still make a tire of that name but they look entirely different now). When they wor...
by Rodc
Tue Jul 26, 2016 12:49 pm
Forum: Personal Finance (Not Investing)
Topic: Any retirees here who have been life-long renters?
Replies: 56
Views: 4298

Re: Any retirees here who have been life-long renters?

Buying vs renting is a personal decision and there isn't a right or wrong answer. Some people enjoy being able to decorate their home any way they want. Others prefer to rent and be able to move when they want. Some people enjoy DIY projects; others, not so much. However, make sure you are accounti...
by Rodc
Tue Jul 26, 2016 12:42 pm
Forum: Personal Finance (Not Investing)
Topic: Any retirees here who have been life-long renters?
Replies: 56
Views: 4298

Re: Any retirees here who have been life-long renters?

Rent vs. buy often comes down more to lifestyle factors (wanting to own/remodel your own place vs. liking the freedom to move & not deal with maintenance). From a financial perspective, neither is a slam-dunk, and it depends too much on home price appreciation rates, inflation, etc. to say for ...
by Rodc
Tue Jul 26, 2016 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: Any retirees here who have been life-long renters?
Replies: 56
Views: 4298

Re: Any retirees here who have been life-long renters?

I'm nowhere near retiring, but perhaps I can help shed a different light. As a somewhat new homeowner, I'm nowhere near where I'd like to be when retired. We're planning for a paid off house when I'm finally able to retire, but that doesn't mean the bills stop. We're in TX where property taxes are ...
by Rodc
Tue Jul 26, 2016 12:36 pm
Forum: Personal Finance (Not Investing)
Topic: Rules of Thumb: Max House Value as % of Net Worth?
Replies: 73
Views: 4418

Re: Rules of Thumb: Max House Value as % of Net Worth?

Many here forget that the subset of people who read websites like Bogleheads or blogs like Financial Samurai are already likely living on the coasts, making incomes far about national averages, and since they have an innate interest in personal finance are already saving a significant amount of the...
by Rodc
Tue Jul 26, 2016 12:17 pm
Forum: Investing - Theory, News & General
Topic: Prepaid part of mortgage counted in AA?
Replies: 16
Views: 597

Re: Prepaid part of mortgage counted in AA?

Either count your house as an asset or not. I confess I find the "don't count it" odd, as it clearly has value. If things really go south you can sell and move somewhere cheaper (another part of the country or a local apartment) of if older could get a reverse mortgage. I note many who nev...
by Rodc
Tue Jul 26, 2016 11:42 am
Forum: Personal Consumer Issues
Topic: What is your plan if you loose job tomorrow ??
Replies: 45
Views: 2927

Re: What is your plan if you loose job tomorrow ??

Lost my job 5 years ago and just said the heck with it and went fishing. Gone fishing ever since and having a blast. Fun is worth more to me than money, because all my relatives died with way too much money. This is largely my plan B for employment. Might be more hiking/climbing than fishing. :) Bu...
by Rodc
Tue Jul 26, 2016 9:13 am
Forum: Personal Finance (Not Investing)
Topic: Quit work and become SAHM - advice? regrets?
Replies: 33
Views: 3422

Re: Quit work and become SAHM - advice? regrets?

Thank you for the perspectives, I appreciate it all whether coming from men who retired, husbands whose wives stayed home, or women who lived it. you've given me lots to think about! I'm considering the lower hours angle -- I'd have to move into an individual contributor role for it to truly be par...
by Rodc
Tue Jul 26, 2016 9:09 am
Forum: Personal Finance (Not Investing)
Topic: Any retirees here who have been life-long renters?
Replies: 56
Views: 4298

Re: Any retirees here who have been life-long renters?

Don't be fooled by the homeowner zealots who conveniently ignore the massive hidden costs associated with home ownership. Houses are horrible investments for the average person. If you insist on home buying, do so if and only if the price per sq ft < $100 OR the purchase price < 30% of your net wor...
by Rodc
Tue Jul 26, 2016 8:32 am
Forum: Investing - Theory, News & General
Topic: Declining or Rising equity allocation in retirement?
Replies: 107
Views: 6216

Re: Declining or Rising equity allocation in retirement?

According to the recent paper The 4% Strategy Revisited: A Pre-Commitment Mean-Variance Optimal Approach to Wealth Management , by Dang, Forsyth, and Vetzal, if the investor is committed to withdrawals that increase with inflation, the stock allocation should be determined a mean-variance optimizat...
by Rodc
Tue Jul 26, 2016 8:25 am
Forum: Investing - Theory, News & General
Topic: Remind me once again why I can't time the market?
Replies: 68
Views: 6188

Re: Remind me once again why I can't time the market?

Klangfool is talking about maintaining allocation; you're talking about changing it. To get from 86/14 to 80/20 you have to buy bonds at whatever current prices are. Once you're at a fixed ratio, you buy more of whatever got cheaper. Example: from 80/20, stocks drop 20%. Now you're at 76/24 without...
by Rodc
Mon Jul 25, 2016 8:31 pm
Forum: Investing - Theory, News & General
Topic: Remind me once again why I can't time the market?
Replies: 68
Views: 6188

Re: Remind me once again why I can't time the market?

Klangfool is talking about maintaining allocation; you're talking about changing it. To get from 86/14 to 80/20 you have to buy bonds at whatever current prices are. Once you're at a fixed ratio, you buy more of whatever got cheaper. Example: from 80/20, stocks drop 20%. Now you're at 76/24 without...
by Rodc
Mon Jul 25, 2016 4:08 pm
Forum: Personal Finance (Not Investing)
Topic: How many folks choose to give inheritance to their children in unequal portions?
Replies: 172
Views: 12789

Re: How many folks choose to give inheritance to their children in unequal portions?

I don't understand why grandparents leave estates to grandchildren. In my family things have always passed to children, and then what's left passes to children, etc. each generation uses and manages money as they see fit. To try to leave to grandchildren seems to me to invite the kind of weird frac...
by Rodc
Mon Jul 25, 2016 4:02 pm
Forum: Investing - Theory, News & General
Topic: Help Me Understand: Why Shouldn't AA Be 100% Stocks During Accumulation Phase?
Replies: 136
Views: 6738

Re: Help Me Understand: Why Shouldn't AA Be 100% Stocks During Accumulation Phase?

A couple of thoughts, hopefully new to the thread. Firecalc does not really give you 116 data points. It must use something like 145 years of data with the last period starting something like Jan 1986 (adding 30 years gets you through 2015 the last full year of data). That means less than 5 independ...
by Rodc
Mon Jul 25, 2016 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement for Women(?)
Replies: 34
Views: 3140

Re: Retirement for Women(?)

One of the issues I did not see mentioned is that often (especially in the population that is currently elderly, though perhaps less so now) wives are younger than husbands. I read somewhere that men, on average, get sick and die more quickly. Thus often wives can care for their sick and dying husba...
by Rodc
Mon Jul 25, 2016 3:27 pm
Forum: Personal Finance (Not Investing)
Topic: House value vs Net worth %?
Replies: 21
Views: 2203

Re: House value vs Net worth %?

I wrote: Cash poor would imply a low value of house. Celia wrote: I think "cash poor" means you don't have much cash for your living expenses. It is all tied up in a house/business/or you are broke. My mistake. I meant to write "House poor implies a low value of house." Edited p...
by Rodc
Mon Jul 25, 2016 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: House value vs Net worth %?
Replies: 21
Views: 2203

Re: House value vs Net worth %?

To me, "house poor" means you qualified for the mortgage, but you don't have cash or extra monthly income to do "extra" things. Have you ever seen a neighborhood of newer bi-level houses (2nd level is above ground level) where the patio/sliding door is barricaded off? There shou...
by Rodc
Mon Jul 25, 2016 3:13 pm
Forum: Personal Consumer Issues
Topic: What kind of apartment can $1k get you in your city?
Replies: 60
Views: 3284

Re: What kind of apartment can $1k get you in your city?

Boston Couch in someone's living room or basement? Yikes, didn't know Boston was expensive. For fun I double checked. Just used the first rental search site I found. I put in $0 - $1000 a month and I did find several parking spots. I'm pretty sure at that cost you would be lucky to find roommate si...
by Rodc
Mon Jul 25, 2016 1:17 pm
Forum: Personal Finance (Not Investing)
Topic: Help! Need to decide which mortgage option to go with today
Replies: 21
Views: 1094

Re: Help! Need to decide which mortgage option to go with today

Need to explore what happens with the ARM under various scenarios.

But off the cuff, I am not a fan of ARMs in general, though concede there may be a few cases where they make sense.
by Rodc
Mon Jul 25, 2016 1:12 pm
Forum: Investing - Theory, News & General
Topic: SP 500: active or passive?
Replies: 11
Views: 710

Re: SP 500: active or passive?

Other than a world cap weighted index fund you could say all stock funds are active, but that is not very helpful. Really there is a continuum of funds from super passive on one side to super active on the other. An S&P 500 fund is not fully over on hard left with the most super passive, but is ...
by Rodc
Mon Jul 25, 2016 1:00 pm
Forum: Personal Finance (Not Investing)
Topic: Quit work and become SAHM - advice? regrets?
Replies: 33
Views: 3422

Re: Quit work and become SAHM - advice? regrets?

I have seen this work very well and not well at all. Like so many things it is all in the details and in your personality. I have seen SAHM that gave up good highish level careers really struggle with no longer "being important". Note is this has long been known as a problem for high power...
by Rodc
Mon Jul 25, 2016 12:34 pm
Forum: Personal Consumer Issues
Topic: What kind of apartment can $1k get you in your city?
Replies: 60
Views: 3284

Re: What kind of apartment can $1k get you in your city?

Boston

Couch in someone's living room or basement?
by Rodc
Mon Jul 25, 2016 12:32 pm
Forum: Personal Consumer Issues
Topic: Storing a road bike in a plastic shed?
Replies: 17
Views: 1038

Re: Storing a road bike in a plastic shed?

sunny_socal wrote:If you have the space, I recommend a wooden shed, the type they have in front of Home Depot. It will last much longer, those plastic sheds fall apart rather quickly in the sun.


I have stored bikes for many years in a basic wooden shed. No problem with rust.
by Rodc
Sun Jul 24, 2016 7:28 pm
Forum: Investing - Theory, News & General
Topic: Delay Social Security to age 70 and Spend more money at 62
Replies: 176
Views: 22900

Re: Delay Social Security to age 70 and Spend more money at 62

Exactly the thinking that prompted me to ask the question. I have a 50/50 allocation and am considering this strategy at age 60. I'd rather make an annual withdrawal and let the rest ride instead of taking a 10 year lump sum out of my portfolio and exposing it to inflation. You do not have to actua...
by Rodc
Sun Jul 24, 2016 11:35 am
Forum: Personal Finance (Not Investing)
Topic: Rules of Thumb: Max House Value as % of Net Worth?
Replies: 73
Views: 4418

Re: Rules of Thumb: Max House Value as % of Net Worth?

Would also depend greatly on where you live. Bay area, Boston, etc is not the same as Atlanta or Peoria.
by Rodc
Sun Jul 24, 2016 8:02 am
Forum: Investing - Theory, News & General
Topic: Are you feeling uncomfortable? [with your investments]
Replies: 42
Views: 4148

Re: Are you feeling uncomfortable? [with your investments]

There's a saying that goes like this, 'if your not feeling uncomfortable, you are not growing.' What have you done recently with your investments that has made you feel uncomfortable? That works in many areas but I do not think that makes any sense in investing. You should stretch at work for examp...
by Rodc
Fri Jul 22, 2016 8:40 pm
Forum: Personal Finance (Not Investing)
Topic: How many folks choose to give inheritance to their children in unequal portions?
Replies: 172
Views: 12789

Re: How many folks choose to give inheritance to their children in unequal portions?

I would give each the same amount, however I might do that in different ways: Child 1 very responsible with money: give them the money Child 2 that is not responsible with money: use the amount to buy an annuity so they can't blow it all, but will help them for a long time Child 3 that isn't bad wi...
by Rodc
Fri Jul 22, 2016 8:33 pm
Forum: Personal Consumer Issues
Topic: Visiting Acadia National Park - Tips?
Replies: 22
Views: 1487

Re: Visiting Acadia National Park - Tips?

I'm not sure what you mean by "primitive" camping... "Primitive camping" means there are no facilities. Youu walk into the woods carrying your tent and all gear/supplies. When you need water you find a stream and use a filter/water treatment. When you need to use the restroom yo...
by Rodc
Fri Jul 22, 2016 7:53 pm
Forum: Personal Finance (Not Investing)
Topic: Term life insurance - "overinsured" definition
Replies: 13
Views: 1049

Re: Term life insurance - "overinsured" definition

FWIW: I set up a spread sheet with a guess at expected future expenses and inflation and looked at what it would take to set up a TIPS ladder to cover those expenses. Then I got two policies that would provide the funds to set up the TIPS ladder. One would not need to actually get a TIPS ladder, sho...
by Rodc
Fri Jul 22, 2016 7:49 pm
Forum: Personal Finance (Not Investing)
Topic: Term life insurance - "overinsured" definition
Replies: 13
Views: 1049

Re: Term life insurance - "overinsured" definition

I realize now that in my original calculation wages did not keep up with inflation or that a lump sum portfolio would grow 3% more than inflation. It does seem like a laddered life insurance policy may ensure that an individual isn't overinsured towards the end of the term. On the one hand yes, a l...
by Rodc
Fri Jul 22, 2016 6:21 pm
Forum: Personal Finance (Not Investing)
Topic: How many folks choose to give inheritance to their children in unequal portions?
Replies: 172
Views: 12789

Re: How many folks choose to give inheritance to their children in unequal portions?

I have one sister who died leaving a son is now an early adult and spends every penny. He got a modest inheritance from a grandparent ($50K) and bought a wicked fast hot rod and wicked fast gaming computer. I have another sister who is the sweetest nicest person, and hard working, but has made a str...
by Rodc
Fri Jul 22, 2016 6:04 pm
Forum: Personal Finance (Not Investing)
Topic: How many folks choose to give inheritance to their children in unequal portions?
Replies: 172
Views: 12789

Re: How many folks choose to give inheritance to their children in unequal portions?

Equal, or you will (most likely) create resentment like you can't believe. My wife's mother had three children. My wife and her never got along, although my wife tried her best (her mother was a difficult person, and that's putting it kindly). The other two kids mainly ignored her. Her brother was ...
by Rodc
Fri Jul 22, 2016 6:04 pm
Forum: Personal Finance (Not Investing)
Topic: How many folks choose to give inheritance to their children in unequal portions?
Replies: 172
Views: 12789

Re: How many folks choose to give inheritance to their children in unequal portions

We are middle children ,both of us. Since we are overseas our parents did not give us equal amount of money. My sister and brother inherited more because they were caregivers for our parents at different times so I did not resent it. My Father-in-law wanted to give his 3 sons equal amount of money ...
by Rodc
Fri Jul 22, 2016 5:59 pm
Forum: Investing - Theory, News & General
Topic: Delay Social Security to age 70 and Spend more money at 62
Replies: 176
Views: 22900

Re: Delay Social Security to age 70 and Spend more money at 62

I have read this many, many (many times) and I have a question. Why wouldn't you just take $63,182 out of your $1,000,000 every year for 8 years and then at age 70 reduce the amount you take out of your portfolio by $34,092? What's the point of taking out $272,736 and sticking it in a savings accou...
by Rodc
Fri Jul 22, 2016 5:53 pm
Forum: Investing - Theory, News & General
Topic: Is buy low, sell high the same as market timing?
Replies: 29
Views: 1847

Re: Is buy low, sell high the same as market timing?

I call it rebalancing if you don't go wild. If you do go wild then yes it is market timing. If only a little crazy you get to choose what you call it. :) Market timing is only dangerous if you are making really big moves into and out of the market. If you are just fiddling around the margins it is u...
by Rodc
Fri Jul 22, 2016 4:03 pm
Forum: Investing - Theory, News & General
Topic: Declining or Rising equity allocation in retirement?
Replies: 107
Views: 6216

Re: Declining or Rising equity allocation in retirement?

http://www.etf.com/sections/index-investor-corner/swedroe-declining-or-rising-equity-strategy-retirement There has been some debate recently on the subject, IMO there should not be Larry Unfortunately, the link to the Estrada report does not allow us to read the document being referred to (is there...
by Rodc
Fri Jul 22, 2016 3:54 pm
Forum: Personal Consumer Issues
Topic: Renovate or replace 12yr old SUV?
Replies: 45
Views: 2322

Re: Renovate or replace 12yr old SUV?

Assuming you bought the pilot for $30k, and it's now worth $7.5k in its current state . Over 12 years you have seen $156 a month in depreciation. Say you dump $2k into maintenance and then keep it keep it for 4 more years, figure it will be worth $5k then. Over 16 years you will have seen $140 a mo...
by Rodc
Fri Jul 22, 2016 2:36 pm
Forum: Investing - Theory, News & General
Topic: Declining or Rising equity allocation in retirement?
Replies: 107
Views: 6216

Re: Declining or Rising equity allocation in retirement?

Few thoughts First our experience was that despite all the education and handholding we provide we estimated that only about 2/3 of clients rebalanced when it was recommended. So about 1/3 did not> Now I still felt good because almost all the remaining 1/3 only committed the minor "crime"...
by Rodc
Fri Jul 22, 2016 2:31 pm
Forum: Investing - Theory, News & General
Topic: Declining or Rising equity allocation in retirement?
Replies: 107
Views: 6216

Re: Declining or Rising equity allocation in retirement?

I liked this paragraph by Mr Swedroe: The result is that, to adhere to their plans, retirees will be required to buy more stock after periods of large losses. My more than 20 years of experience has made clear that only a minority of retirees would be able to adhere to such a plan if they had just ...
by Rodc
Fri Jul 22, 2016 1:40 pm
Forum: Investing - Theory, News & General
Topic: Declining or Rising equity allocation in retirement?
Replies: 107
Views: 6216

Re: Declining or Rising equity allocation in retirement?

From the article: "While both static and glide path strategies have the benefit of simplicity, it’s true that “everything should be made as simple as possible, but not simpler” (a quote often attributed to Albert Einstein)." So what's optimal? (I know - long books have been written on tha...
by Rodc
Fri Jul 22, 2016 1:26 pm
Forum: Investing - Theory, News & General
Topic: Are you feeling uncomfortable? [with your investments]
Replies: 42
Views: 4148

Re: Are you feeling uncomfortable? [with your investments]

There's a saying that goes like this, 'if your not feeling uncomfortable, you are not growing.' What have you done recently with your investments that has made you feel uncomfortable? That works in many areas but I do not think that makes any sense in investing. You should stretch at work for examp...
by Rodc
Fri Jul 22, 2016 1:25 pm
Forum: Investing - Theory, News & General
Topic: Evaluating our investing performance - what indices and format?
Replies: 5
Views: 261

Re: Evaluating our investing performance - what indices and format?

Indexes often do not include reinvestments of dividends. If you use mutual funds or etfs it is easy to get total return. Can just use a very low cost index fund that matches what you are trying to do. Of course you should be using this as your investments so you can't do better or worse! I think bet...
by Rodc
Fri Jul 22, 2016 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: Networth = Age x Pretax income then divide by 10?
Replies: 49
Views: 6051

Re: Networth = Age x Pretax income then divide by 10?

ALL calculations listed above are not helpful. Is this actionable? Helpful is in the eye of the beholder. Many are clueless and so even a lousy rule of thumb is better than nothing. If this got someone to thinking and got them to increase savings that would be an action and a good thing. Optimal? N...

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