Search found 1582 matches

by aristotelian
Mon May 22, 2017 9:25 pm
Forum: Investing - Help with Personal Investments
Topic: Do you keep extra money available for investing
Replies: 24
Views: 1497

Re: Do you keep extra money available for investing

I invest every penny. Stocks for bull markets, bonds for bear markets. If the market is down, I rebalance from bonds. I do not see the point of holding cash except to buy stuff, and I like to buy a little stuff as possible.
by aristotelian
Mon May 22, 2017 3:30 pm
Forum: Investing - Help with Personal Investments
Topic: Missed window for selling Fairholme Fund (FAIRX)?
Replies: 24
Views: 582

Re: Missed window for selling Fairholme Fund (FAIRX)?

If you really can't stand to part with it completely, get rid of half now and half in six months. Or reverse-dollar-cost-average and sell 10% per month.
by aristotelian
Mon May 22, 2017 3:19 pm
Forum: Investing - Help with Personal Investments
Topic: Quickest Path to Financial Independence
Replies: 19
Views: 2360

Re: Quickest Path to Financial Independence

Thank you very much for your time and replies. Everyone has been extremely helpful and informative. I suspect I may have been partly misunderstood. Perhaps my wording was too ambiguous. I am not asking how to make money. I am asking where to put my money and how much I need to put in whatever inves...
by aristotelian
Mon May 22, 2017 2:47 pm
Forum: Investing - Help with Personal Investments
Topic: SEP IRA vs. investment account
Replies: 4
Views: 190

Re: SEP IRA vs. investment account

Go for it. No reason you should be paying more taxes than you need. Consider Individual 401k as well. You could also make it Roth if you are in a low tax bracket now.
by aristotelian
Mon May 22, 2017 2:28 pm
Forum: Investing - Help with Personal Investments
Topic: Missed window for selling Fairholme Fund (FAIRX)?
Replies: 24
Views: 582

Re: Missed window for selling Fairholme Fund (FAIRX)?

1. Ask yourself if you had the same amount of cash to invest today, would you pick FAIRX? Or are you simply holding onto it for emotional reasons? 2. Most of us would never have bough it in the first place due to the expense ratio. I have no idea what that particular fund will do but I can tell you ...
by aristotelian
Mon May 22, 2017 2:01 pm
Forum: Investing - Help with Personal Investments
Topic: FAN [First Trust Global Wind Energy ETF]
Replies: 17
Views: 622

Re: FAN [First Trust Global Wind Energy ETF]

Honestly it is such a small sector that you could probably do just as well by buying the top 8-10 individual holdings and building your own mini-index without paying the 0.6% ER. Alternatively you could diversify a bit and buy ICLN (which includes solar) at a lower ER (0.47%). Then you will come out...
by aristotelian
Mon May 22, 2017 1:18 pm
Forum: Investing - Help with Personal Investments
Topic: Very Close to FI / RE - Allocation Suggestions?
Replies: 13
Views: 833

Re: Very Close to FI / RE - Allocation Suggestions?

With only 57% stocks, I don't see any reason to change your asset allocation now nor for the rest of your lives. Basically, there is nothing you can do to minimize the effect of a market crash. You MUST rebalance by buying equities all the way down to the bottom or you have a lower chance of succes...
by aristotelian
Mon May 22, 2017 1:04 pm
Forum: Investing - Help with Personal Investments
Topic: Very Close to FI / RE - Allocation Suggestions?
Replies: 13
Views: 833

Re: Very Close to FI / RE - Allocation Suggestions?

I would be more curious about your withdrawal plan than your allocation.What is your plan for not running out of money? Back of the napkin, you are going to want to have at least $500K left at 65 when SS and Medicare kick in. 5% withdrawal rate now, and then 2 or 3% after 65? Front loading your with...
by aristotelian
Mon May 22, 2017 12:44 pm
Forum: Personal Finance (Not Investing)
Topic: Replace timing chain based on miles or years? [ignore]
Replies: 18
Views: 1049

Re: Replace timing chain based on miles or years?

Does your engine say "V-TEC" on it? If so, you have a chain that should be good for the lifetime of the car.
by aristotelian
Mon May 22, 2017 9:15 am
Forum: Investing - Help with Personal Investments
Topic: Safe 5 percent ROI
Replies: 19
Views: 2646

Re: Safe 5 percent ROI

You might want to post more details about your full portfolio. You could look into a version of the "Larry Portfolio" which is about 30% stocks and 70% short term bonds. You could also look at Vanguard's Wellesley Income fund which is about 35/65. To give you a sense of the risk, it had -1...
by aristotelian
Mon May 22, 2017 9:00 am
Forum: Investing - Help with Personal Investments
Topic: HELP -- Solo 401k vs SEP-IRA
Replies: 6
Views: 207

Re: HELP -- Solo 401k vs SEP-IRA

Employee max for Solo 401k (over 50) is $24K and that is if you don't have an employer plan. I do not think you can make employee contributions to a Solo 401k if your regular 403b is already being maxed. Employ-er max for Solo 401k (over 50) is 25% of self employment income up to $60K. I am not sure...
by aristotelian
Mon May 22, 2017 7:47 am
Forum: Investing - Help with Personal Investments
Topic: Investing Emergency Fund
Replies: 20
Views: 1948

Re: Investing Emergency Fund

Aren't those too low ($10,000) for emergency fund? It says " $10,000 in TreasuryDirect and $5,000 in paper bonds purchased with IRS tax refunds" Close to 2% is not bad at all, since it's taxed the same way as CD (regular income at federal level) it's a good alternative. Can those be bough...
by aristotelian
Sun May 21, 2017 10:28 pm
Forum: Investing - Help with Personal Investments
Topic: One Last Beginner Question Regarding Bonds
Replies: 14
Views: 1260

Re: One Last Beginner Question Regarding Bonds

I have read up on Swedroe's position and I agree with it. However, that is not saying much based on my overall lack of knowledge. My main reason for going in a different direction than BND is to be able to sell them in a crashing market to buy stocks and rebalance. I'm wondering if I should have a ...
by aristotelian
Sun May 21, 2017 8:30 pm
Forum: Investing - Help with Personal Investments
Topic: One Last Beginner Question Regarding Bonds
Replies: 14
Views: 1260

Re: One Last Beginner Question Regarding Bonds

For 20% of your portfolio, BND is fine and anything you add would probably not make a significant difference. That said, I would recommend reading a good book on different types of bonds. They all have a place depending on your needs. I had good luck with Larry Swedroe's Only Winning Bond Strategy. ...
by aristotelian
Sun May 21, 2017 7:54 pm
Forum: Investing - Help with Personal Investments
Topic: Risk vs. Reward analysis on contributing to 529 when child is hypothetical
Replies: 14
Views: 749

Re: Risk vs. Reward analysis on contributing to 529 when child is hypothetical

I-Bonds and EE-Bonds would be a great option. For an unborn child, EE-Bonds would have time to get the automatic double at 20 years. Both can be used tax free for education if you have the child, or they can become part of your own bond allocation if you don't with no penalties. Win/win.
by aristotelian
Sun May 21, 2017 1:00 pm
Forum: Investing - Help with Personal Investments
Topic: Investing Emergency Fund
Replies: 20
Views: 1948

Re: Investing Emergency Fund

But aren't we all a little nuts sometimes. But you are correct I should leave my emergency fund as an insurance policy and insurance should cost money. I guess I feel I should be seeking to get at least a 3% return so that my fund stays the same with inflation. Check out I-Bonds. Guaranteed to keep...
by aristotelian
Sun May 21, 2017 10:29 am
Forum: Investing - Help with Personal Investments
Topic: Investing Emergency Fund
Replies: 20
Views: 1948

Re: Investing Emergency Fund

7-12 is apparently meant to be a conservative portfolio, but it is supposed to be a whole portfolio. You might use the most secure and stable funds within the portfolio as your backup emergency fund but you would not want a portfolio meant to be a whole portfolio to serve as your emergency fund. It ...
by aristotelian
Sun May 21, 2017 6:46 am
Forum: Investing - Help with Personal Investments
Topic: please evaluate my portfolio, is it too risky
Replies: 13
Views: 1333

Re: please evaluate my portfolio, is it too risky

Our combined social security at 62 is 3,300 and with my military pension of 2,000 month for a total of 5,300 will cover all of our fixed living expenses, that is why I have 100% stock portfolio, does this sound reasonable? Now you tell us! That is pretty critical information. I would revise my earl...
by aristotelian
Sat May 20, 2017 10:57 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Questions & Check Up
Replies: 5
Views: 406

Re: Portfolio Questions & Check Up

What are the expense ratios of his and her 401k target date funds?
by aristotelian
Sat May 20, 2017 9:49 pm
Forum: Investing - Help with Personal Investments
Topic: Retiring at 50. Making sure my investments are in order.
Replies: 15
Views: 2943

Re: Retiring at 50. Making sure my investments are in order.

What is your withdrawal plan before/after social security kicks in?

How much extra income do you need above the pension?

Is health care taken care of?
by aristotelian
Sat May 20, 2017 9:15 pm
Forum: Investing - Help with Personal Investments
Topic: Wife's 403b choices
Replies: 1
Views: 127

Re: Wife's 403b choices

You do not need international. If you want international, you can always hold it in a different account. I would go with VINIX 100% in her 403b.
by aristotelian
Sat May 20, 2017 8:27 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Checkup-6 years later (I think I've overdone it on the savings)
Replies: 4
Views: 1163

Re: Portfolio Checkup-6 years later (I think I've overdone it on the savings)

I do think two years in savings earning no real return is too much. Is it just in a 1% savings account? Is there any reason (e.g. expect prolonged unemployment, etc) that you feel the need to have that much? Your tax bracket is definitely in the range that you could consider tax exempt muni bond fun...
by aristotelian
Sat May 20, 2017 7:47 pm
Forum: Investing - Help with Personal Investments
Topic: Help - Sleep Deprived New Dad Rebalancing
Replies: 9
Views: 806

Re: Help - Sleep Deprived New Dad Rebalancing

Good luck with the kid. Been there done that (twice). Finally got it right with the third - basically just ignored him when he cried. After five years, we were just too darn tired to wake up. We did the opposite. Just gave in completely and built the kid a bed that was level with ours so he could s...
by aristotelian
Sat May 20, 2017 7:00 pm
Forum: Investing - Help with Personal Investments
Topic: What do you think about this asset allocation?
Replies: 12
Views: 909

Re: What do you think about this asset allocation?

How did I come up with $5M? I just based this on what my uncle was telling me that we would need but I guess we can survive with way lower than this. So I guess, we need to rethink our asset allocation and not be too greedy. Thank you for your input aristotelian! Well, don't take my word for it eit...
by aristotelian
Sat May 20, 2017 6:33 pm
Forum: Investing - Help with Personal Investments
Topic: What do you think about this asset allocation?
Replies: 12
Views: 909

Re: What do you think about this asset allocation?

Our number is around $5M and our portfolio is now $1,138,137. Based on Personal Capital's retirement planner, if we maintain this asset allocation it would grow to $7,737,298 in an average market and $5,016,612 in a poor market and can actually achieve this by age 52. I don't know what Personal Cap...
by aristotelian
Sat May 20, 2017 4:28 pm
Forum: Investing - Help with Personal Investments
Topic: Rethinking My Investment Strategy
Replies: 3
Views: 524

Re: Rethinking My Investment Strategy

If I understand correctly, your only active contributions are $18K in the unmatched 401k. That is a good savings rate for someone your age, although in your tax bracket it is possible you could do better. You are making at least 100K with no kids. Where does it all go? Your savings rate is what will...
by aristotelian
Sat May 20, 2017 3:02 pm
Forum: Investing - Help with Personal Investments
Topic: Evaluate Asset Allocation
Replies: 8
Views: 380

Re: Evaluate Asset Allocation

Congratulations, you have a good allocation and a very healthy retirement. A 3% withdrawal rate gives you $225K annually from your portfolio, plus you have SS. You could consider something more like 30/70 or 40/60 to be more conservative. With 56/44 you might have to reduce your withdrawal amount fr...
by aristotelian
Sat May 20, 2017 1:47 pm
Forum: Personal Finance (Not Investing)
Topic: tesla's valuation
Replies: 15
Views: 1068

Re: tesla's valuation

And it will be, albeit a significant part of its disruption is, indeed, its impact on transportation. Not clear to me Tesla is the company to do it. They have a lot to execute on. Very true on both counts. Another issue is that Tesla makes the breakthrough but somebody else brings it to scale. Pers...
by aristotelian
Sat May 20, 2017 12:26 pm
Forum: Investing - Theory, News & General
Topic: Interesting conversation with an alleged SS actuary
Replies: 55
Views: 3439

Re: Interesting conversation with an alleged SS actuary

midareff wrote:My retirement strategy would really come into focus if I knew when I was going to die.


There is a thread for that...
viewtopic.php?t=215124
by aristotelian
Sat May 20, 2017 12:23 pm
Forum: Investing - Help with Personal Investments
Topic: Advice on retirement plans
Replies: 4
Views: 549

Re: Advice on retirement plans

Any chance she is paid or could be paid as a consultant? Then you could do an Individual 401K. Otherwise, it appears you are out of luck. I would definitely be looking into tax exempt muni bonds for your tax bracket and lack of tax-advantaged options. Also I-Bonds.
by aristotelian
Sat May 20, 2017 12:09 pm
Forum: Personal Finance (Not Investing)
Topic: tesla's valuation
Replies: 15
Views: 1068

Re: tesla's valuation

lots of risks, and benefits in tesla. Now that i use uber alot, i dont see the point of a car in a lot of situations. Lots of disruption coming in transportation over the next 20 years I own tesla as part of my total stock market fund, so im fine I like that they are diversifying into solar and ene...
by aristotelian
Sat May 20, 2017 10:58 am
Forum: Investing - Help with Personal Investments
Topic: Please give de-accumulation advice
Replies: 8
Views: 628

Re: Please give de-accumulation advice

Are you single? I would focus withdrawals on the taxable stock funds and begin liquidating those to cash or bonds. Once you are retired, as long as the gains do not put you over $37,950, you would pay no taxes. Any funds you don't spend you could reinvest in bonds/savings. The bridge years would be ...
by aristotelian
Sat May 20, 2017 10:12 am
Forum: Investing - Help with Personal Investments
Topic: What do you think about this asset allocation?
Replies: 12
Views: 909

Re: What do you think about this asset allocation?

Because you are talking about early retirement, I would be more conservative. What do you consider to be your "number" that you are seeking to hit by 55? Start from there and work backwards. What is the most conservative path you can take that can get you to that number? It looks like you ...
by aristotelian
Sat May 20, 2017 10:01 am
Forum: Investing - Help with Personal Investments
Topic: Best Utilization of Extra $
Replies: 4
Views: 506

Re: Best Utilization of Extra $

Let's get some more details. Please see posting guidelines at the top of the forum. There is no way to advise you if we do not know your age and current holdings. In general, Vanguard Total Stock Market or Total Bond Market (depending on your risk tolerance) are good choices, the more the better. Ma...
by aristotelian
Sat May 20, 2017 9:35 am
Forum: Investing - Theory, News & General
Topic: Demand for stocks too high? (investor behavior)
Replies: 20
Views: 1780

Re: Demand for stocks to high? (investor behavior)

If you are worried, your stock allocation is too high. I have no idea whether a 50% drop will happen tomorrow or ten years from now, but it certainly will happen at some point. If you can't absorb that risk you shouldn't be playing. Quite the opposite. As an accumulator, I'm more frustrated that el...
by aristotelian
Sat May 20, 2017 7:09 am
Forum: Investing - Help with Personal Investments
Topic: Investing For Children
Replies: 20
Views: 1206

Re: Investing For Children

I dont have children yet but i do have young siblings (18 years old). They hold a job but mostly receive money from relatives, family members... Are UGMA/UTMAs accounts something i can open for them or should i go with IRA/retirement accounts ? If they are 18, you probably should just gift them dir...
by aristotelian
Sat May 20, 2017 7:08 am
Forum: Investing - Help with Personal Investments
Topic: Investing For Children
Replies: 20
Views: 1206

Re: Investing For Children

I prefer 529 for the reason stated above--I am not comfortable with an irrevocable gift when I do not know that the child will be responsible at age 18 or 21. With a 529 the money is yours with child as beneficiary if/when you decide to cut a check. (Even if they attend college, you still have to cu...
by aristotelian
Sat May 20, 2017 6:49 am
Forum: Investing - Help with Personal Investments
Topic: please evaluate my portfolio, is it too risky
Replies: 13
Views: 1333

Re: please evaluate my portfolio, is it too risky

At age 48 you should really have a bond allocation. Seems to me you are on track for retirement but a nasty correction at the wrong time could do great damage. You have a good saving rate now but it seems you are slightly behind and you are trying to catch up. $60K per year with steady return would ...
by aristotelian
Sat May 20, 2017 6:27 am
Forum: Investing - Help with Personal Investments
Topic: Fidelity changed my AAPL to re-invest dividends, now I have a fraction of a share
Replies: 13
Views: 1011

Re: Fidelity changed my AAPL to re-invest dividends, now I have a fraction of a share

First world problem if there ever was one! I have never really understood why fractional shares aren't the norm so that I can just buy by dollar amount rather than shares. The number of shares is arbitrary anyway. That said... Have you tried setting to SpecID and selling that way? How much of a frac...
by aristotelian
Sat May 20, 2017 6:12 am
Forum: Investing - Help with Personal Investments
Topic: Should I switch my Vanguard funds to lower cost Schwab funds?
Replies: 38
Views: 2373

Re: Should I switch my Vanguard funds to lower cost Schwab funds?

I don't see any downside. Up to you if it's worth it. I have accounts with both Schwab and Vanguard and like them both. If you are interested in buying Schwab funds, you might as well transfer all or some of your portfolio, as you will get transfer bonus(es) plus you can take advantage of their exce...
by aristotelian
Fri May 19, 2017 9:31 pm
Forum: Investing - Help with Personal Investments
Topic: Help with investing in my ROTH IRA
Replies: 7
Views: 622

Re: Help with investing in my ROTH IRA

In the 15% tax bracket, you should be sure to periodicially cash in your stock funds and pay 0% on long term capital gains. There is no need for you to be worried about tax efficiency. You should do a Roth IRA for your spouse as well. You could do Total Bond Market Index in your IRA and Total Stock ...
by aristotelian
Fri May 19, 2017 8:53 pm
Forum: Investing - Theory, News & General
Topic: Demand for stocks too high? (investor behavior)
Replies: 20
Views: 1780

Re: Demand for stocks to high? (investor behavior)

If you are worried, your stock allocation is too high. I have no idea whether a 50% drop will happen tomorrow or ten years from now, but it certainly will happen at some point. If you can't absorb that risk you shouldn't be playing.
by aristotelian
Fri May 19, 2017 8:45 pm
Forum: Investing - Help with Personal Investments
Topic: I'm having a freak-out moment (portfolio question)
Replies: 24
Views: 2320

Re: I'm having a freak-out moment (portfolio question)

First of all, you have a pension. You will very likely be OK on 75% of your income plus social security. If your income is $70K, that means it will provide over $50K, which would mean that your pension will represent about $1.5M of savings at retirement time. So I think you are both "fine"...
by aristotelian
Fri May 19, 2017 6:46 pm
Forum: Investing - Help with Personal Investments
Topic: Any advice on investing 200k, short term 1 yr?
Replies: 3
Views: 332

Re: Any advice on investing 200k, short term 1 yr?

If you can take a little risk to earn more return than a CD and better liquidity, consider Vanguard Short Term Investment Grade (VFSTX) or Short Term Corporate ETF (VCSH). I have my 2nd tier emergency fund in VCSH. Stay away from anything intermediate or long term.
by aristotelian
Fri May 19, 2017 6:04 pm
Forum: Investing - Help with Personal Investments
Topic: If You Can't
Replies: 25
Views: 1514

Re: If You Can't

Personally I don't see the issue with rebalancing. Just write down a policy in your IPS (quarterly, etc) and do it. But if that is too much, there is absolutely nothing wrong with a set and forget target date fund. The issue for me is greed. I would say why reallocate to only 33% stocks in a down m...
by aristotelian
Fri May 19, 2017 5:46 pm
Forum: Investing - Help with Personal Investments
Topic: If You Can't
Replies: 25
Views: 1514

Re: If You Can't

Personally I don't see the issue with rebalancing. Just write down a policy in your IPS (quarterly, etc) and do it. But if that is too much, there is absolutely nothing wrong with a set and forget target date fund.
by aristotelian
Fri May 19, 2017 5:41 pm
Forum: Investing - Help with Personal Investments
Topic: Help - Sleep Deprived New Dad Rebalancing
Replies: 9
Views: 806

Re: Help - Sleep Deprived New Dad Rebalancing

I say yes, yes, and yes. Your plan is perfectly sound.

If you could find a way to increase your taxable by just a bit, you could almost pay off your mortgage...Then you might be able to sleep better (if not your son).
by aristotelian
Fri May 19, 2017 2:55 pm
Forum: Investing - Help with Personal Investments
Topic: CD options
Replies: 13
Views: 751

Re: CD options

new000 wrote:Thanks for the link. I saw Ishare IBond options in fidelity and thought its the same . pardon my ignorance.


No worries, there is no reason you should be expected to know. For more on I-Bonds and how they work, see the Wiki.

https://www.bogleheads.org/wiki/I_savings_bonds
by aristotelian
Fri May 19, 2017 2:19 pm
Forum: Investing - Help with Personal Investments
Topic: I am a huge believer in Passive Indexing.. but.....
Replies: 42
Views: 3049

Re: I am a huge believer in Passive Indexing.. but.....

I read a quote from Buffett several months ago in which he said that if he were starting out with only 50k today he thinks he could destroy the S and P. I can't remember the exact number. But I remember that it was large enough that I thought it couldn't be true. Like 30-40% return annually. Wouldn...
by aristotelian
Fri May 19, 2017 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: How Best to Give?
Replies: 8
Views: 623

Re: How Best to Give?

re: your last comment, setting up a DAF is best done with highly appreciated securities. The advantage of doing so has little to do with current income other than the tax deduction of the contribution, but you don't itemize so that doesn't seem relevant. I'm not sure why you linked setting up a DAF...

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