Search found 4031 matches

by avalpert
Mon Jan 23, 2017 10:46 am
Forum: Personal Finance (Not Investing)
Topic: Annual Vacation Budget
Replies: 261
Views: 16279

Re: Annual Vacation Budget

I can absolutely get spending 3-4k on a vacation and I might do that someday in the future. So someone saying they spent 3k for their Hawaii vacation seems reasonable. But these numbers like 18k etc sound insanely high unless you are spending months in hong kong living high on the hog. Honestly thi...
by avalpert
Mon Jan 23, 2017 12:29 am
Forum: Investing - Theory, News & General
Topic: Hypo: What would you do if you were SURE of impending deline in markets
Replies: 62
Views: 3511

Re: How would you invest if you were SURE of short-term deline in markets

Many people on this forum seem to chase cash back credit cards and such; but I don't myself, because I see that as an alternative reality. What does that mean - 'alternative reality'? I don't see how reducing all my expenses by 2% because of the credit card I use is an alternative reality - I just ...
by avalpert
Sun Jan 22, 2017 11:47 pm
Forum: Investing - Theory, News & General
Topic: Hypo: What would you do if you were SURE of impending deline in markets
Replies: 62
Views: 3511

Re: Hypo: What would you do if you were SURE of impending deline in markets

Of course the answer is you go short with as much leverage as you can get your hand on - assuming the reason your know for certain it is going down wouldn't result in insider trading. This is no different than Biff in Back to the Future 2. It really isn't an interesting hypothetical at all - if an i...
by avalpert
Sun Jan 22, 2017 9:38 pm
Forum: Investing - Theory, News & General
Topic: Cash flow for financial independence
Replies: 18
Views: 1767

Re: Cash flow for financial independence

So, if you need $60,000/year to live on, your standard financial advice would be to save 25x this ($1,500,000 via paper asset investing) and then live off of the 4% withdrawal indefinitely. Alternatively, per his philosophy, you would look at the money needed in terms of cash flow. So, $60,000/yr t...
by avalpert
Fri Jan 20, 2017 9:43 am
Forum: Personal Consumer Issues
Topic: Award flight from NY to MIA with ultimate reward points
Replies: 12
Views: 697

Re: Award flight from NY to MIA with ultimate reward points

You can try all the options being suggested - but flying to South Florida on spring break is rarely the way to find airfare deals.
by avalpert
Thu Jan 19, 2017 10:37 am
Forum: Investing - Theory, News & General
Topic: Factor-Diversified Portfolio
Replies: 137
Views: 8924

Re: Factor-Diversified Portfolio

selters asked if this portfolio would be better diversified than TSM: 50% US Large Cap 20% US Mid Cap 30% US Small Cap Larry Swedroe suggested this to selters: In terms of factor exposure you would have gained exposure to the size factor but not any other factor. To be more diversified you could su...
by avalpert
Wed Jan 18, 2017 11:38 pm
Forum: Investing - Help with Personal Investments
Topic: Voilatility of international stocks, well in particular, VTIAX?
Replies: 9
Views: 614

Re: Voilatility of international stocks, well in particular, VTIAX?

Why don't you look at the 10 year performance for 2000 to 2010 and tell me what conclusion you draw as to what to invest in.
by avalpert
Wed Jan 18, 2017 4:30 pm
Forum: Investing - Theory, News & General
Topic: Why should mutual funds have expense ratios, and not expense fees
Replies: 10
Views: 844

Re: Why should mutual funds have expense ratios, and not expense fees

Explanations don't account for some high ER funds. ER doesn't seem to be tied to expenses. OK, at Vanguard this is the case, but certainly it isn't for all funds. Generally speaking, funds with large asset bases should be less expensive than smaller funds, as they can spread their costs across a la...
by avalpert
Wed Jan 18, 2017 4:27 pm
Forum: Investing - Theory, News & General
Topic: Factor-Diversified Portfolio
Replies: 137
Views: 8924

Re: Factor-Diversified Portfolio

Here's even better, from August 2000 to present: Beta = 0.97 Size = 0.31 Value = 0.28 MOM = 0.13 Looks pretty diversified across the 4 factors and all are statistically significant. How about it? Just two equity asset classes, equally weighted and rebalanced annually. This is a 50/50 split between ...
by avalpert
Wed Jan 18, 2017 12:56 am
Forum: Investing - Help with Personal Investments
Topic: Have a big loss with BND, sell, write off stock loss and re-buy?
Replies: 16
Views: 904

Re: Have a big loss with BND, sell, write off stock loss and re-buy?

Did you check what your actual loss is? The OP said it was either a $2000, $3000, or $4000 loss on his $20,000 investment. So we're probably safe in assuming he hasn't actually checked..... I believe my loss on BND was about $2-3k if memory serves (I was on the phone with Vanguard a few weeks ago) ...
by avalpert
Wed Jan 18, 2017 12:43 am
Forum: Investing - Help with Personal Investments
Topic: Have a big loss with BND, sell, write off stock loss and re-buy?
Replies: 16
Views: 904

Re: Have a big loss with BND, sell, write off stock loss and re-buy?

Did you check what your actual loss is? The OP said it was either a $2000, $3000, or $4000 loss on his $20,000 investment. So we're probably safe in assuming he hasn't actually checked..... Except given it's price history and the total value that is literally impossible - so I highly doubt he check...
by avalpert
Wed Jan 18, 2017 12:37 am
Forum: Investing - Help with Personal Investments
Topic: Have a big loss with BND, sell, write off stock loss and re-buy?
Replies: 16
Views: 904

Re: Have a big loss with BND, sell, write off stock loss and re-buy?

What you are talking about is tax loss harvesting and the wiki covers it well: https://www.bogleheads.org/wiki/Tax_loss_harvesting But you do not have 'pretty significant losses' in BND. BND is down less than 5% from its absolute peak - not just in the last 12 months but it's entire history. Sorry,...
by avalpert
Wed Jan 18, 2017 12:25 am
Forum: Investing - Help with Personal Investments
Topic: Have a big loss with BND, sell, write off stock loss and re-buy?
Replies: 16
Views: 904

Re: Have a big loss with BND, sell, write off stock loss and re-buy?

What you are talking about is tax loss harvesting and the wiki covers it well: https://www.bogleheads.org/wiki/Tax_loss_harvesting

But you do not have 'pretty significant losses' in BND. BND is down less than 5% from its absolute peak - not just in the last 12 months but it's entire history.
by avalpert
Tue Jan 17, 2017 10:09 pm
Forum: Investing - Help with Personal Investments
Topic: Staging next year's Roth in Taxable
Replies: 4
Views: 584

Re: Staging next year's Roth in Taxable

There is no 'Roth' money or 'taxable' money or 'savings' money there is just your money. What are you doing with that money if not investing it in your portfolio per your desired allocation? Is it just sitting in cash - well then your portfolio isn't at it's desired allocation. It is as simple as th...
by avalpert
Tue Jan 17, 2017 2:37 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k
Replies: 16
Views: 904

Re: Solo 401k

If you open your solo 401k with rollover money from a traditional IRA you don't even need any actual 'self employment' income. You just need an EIN from the IRS, which you can get regardless of whether you are actually self employed or not. This is most definitely incorrect . In order to adopt a se...
by avalpert
Tue Jan 17, 2017 11:13 am
Forum: Personal Consumer Issues
Topic: Basic question on Hybrid cars
Replies: 64
Views: 3488

Re: Basic question on Hybrid cars

avalpert...... or we are automotive enthusiasts that pay notice of the exhaust note from an internal combustion engine. I for one will never own a hybrid until I have no other choice. Different strokes for different folks........... BTW, cars do indeed have souls IMHO. I believe those people fit in...
by avalpert
Tue Jan 17, 2017 11:06 am
Forum: Personal Finance (Not Investing)
Topic: Need to terminate solo 401(k)?
Replies: 8
Views: 641

Re: Need to terminate solo 401(k)?

Further, I can't imagine why you'd need to terminate the solo 401k. Why can't you just leave it be and let the account grow (no more contributions) while you are working for the new employer? Why would you terminate your solo 401(k) if you stopped the consulting? You can just let it sit there, just...
by avalpert
Tue Jan 17, 2017 10:43 am
Forum: Personal Finance (Not Investing)
Topic: Is the housing market like stocks? When do you think prices fall again?
Replies: 38
Views: 2875

Re: Is the housing market like stocks? When do you think prices fall again?

P.S.: And should even that be less than clear: if the landlording business is in general profitable, I expect to benefit, over the long run, from serving as my own landlord. That does make this, all too common, argument clear. Now see if these equally clear arguments make sense to you: If the farmi...
by avalpert
Tue Jan 17, 2017 12:45 am
Forum: Personal Consumer Issues
Topic: Basic question on Hybrid cars
Replies: 64
Views: 3488

Re: Basic question on Hybrid cars

Having a vehicle sold as 'hybrid-only' does not inherently make its power system better than one sold with a hybrid option any more than a vehicle sold 'automatic-only' has an inherently better transmission than one sold with a standard option. The type of hybrid system itself does vary and can have...
by avalpert
Mon Jan 16, 2017 10:13 pm
Forum: Investing - Help with Personal Investments
Topic: Should Bond Funds be Considered a Fixed Income Investment?
Replies: 30
Views: 1847

Re: Should Bond Funds be Considered a Fixed Income Investment?

If a bond fund is not fixed income what is it? It certainly isn't equity. It is not a commodity or any of the other things that are sometimes called alternate investments so I think I am left calling it fixed income. Seems like a great marketing opportunity - maybe someone needs to rebrand their in...
by avalpert
Mon Jan 16, 2017 9:57 pm
Forum: Personal Finance (Not Investing)
Topic: Worth keeping rental? (Numbers included)
Replies: 3
Views: 425

Re: Worth keeping rental? (Numbers included)

Those numbers make it look like a marginal rental property and it doesn't appear to be in an area with high appreciation, add to that your high cost of leverage and I would think you are better off selling and investing the funds elsewhere.
by avalpert
Mon Jan 16, 2017 8:52 pm
Forum: Investing - Help with Personal Investments
Topic: Should Bond Funds be Considered a Fixed Income Investment?
Replies: 30
Views: 1847

Re: Should Bond Funds be Considered a Fixed Income Investment?

I think PJW does a great job of illustrating why the funds are equivalent to the underlying securities. So the more interesting question isn't whether it is a fixed income investment - but what is the nature of fixed income and the role it plays in you portfolio. The real difference between buying a...
by avalpert
Mon Jan 16, 2017 7:47 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Total World Stock question
Replies: 14
Views: 1349

Re: Vanguard Total World Stock question

^ Yes, but does Vanguard take currency fluctations into considerations when adding more international stocks? Because even if international stocks are doing well, US investors might not see many gains, if the dollar is strong, and foreign currencies are weak. right? Or would Vanguard only increase ...
by avalpert
Mon Jan 16, 2017 6:30 pm
Forum: Personal Finance (Not Investing)
Topic: Is the housing market like stocks? When do you think prices fall again?
Replies: 38
Views: 2875

Re: Is the housing market like stocks? When do you think prices fall again?

Is the housing market actually cyclical, or is it like the stock market where everything is already "priced in" and will stay that way until there's no information? I want to hear from more experienced older folk who've seen how the housing market has gone. Does it go up and down regularl...
by avalpert
Sun Jan 15, 2017 5:05 pm
Forum: Investing - Theory, News & General
Topic: Shouldn't everyone do a traditional IRA/401k instead of a Roth?
Replies: 132
Views: 7300

Re: Shouldn't everyone do a traditional IRA/401k instead of a Roth?

Overall, I agree it is not a bad position to be diversified in all 3 accounts, I will probably do this myself. However, I tend to lean strongly towards ROTH accounts because of the flexibility they provide. I think this is a mistake - you have more flexibility with a traditional at this point. With...
by avalpert
Sun Jan 15, 2017 4:44 pm
Forum: Investing - Theory, News & General
Topic: Shouldn't everyone do a traditional IRA/401k instead of a Roth?
Replies: 132
Views: 7300

Re: Shouldn't everyone do a traditional IRA/401k instead of a Roth?

Here is my same table showing close to a 5 million balance at retirement... I know this doesn't show contributions of x amount per year over 30 years, but for simplicity sake.... you'll see only a 2% difference after 30 years, or a little more than $100k. It is entirely possible in the future your ...
by avalpert
Sun Jan 15, 2017 4:34 pm
Forum: Investing - Help with Personal Investments
Topic: I401k Employer Portion limit 20% or 25% of income
Replies: 23
Views: 1144

Re: I401k Employer Portion limit 20% or 25% of income

The adjustment for self employment income is what was throwing me off. So just to confirm, if making 80k, then I could have done 18k to employee, and 16k to employer. If making 100k, then I could do 18k to employee, and 20k to employer. Does that sound correct in your opinion? Thanks. Yes, if by 'm...
by avalpert
Sun Jan 15, 2017 4:16 pm
Forum: Investing - Help with Personal Investments
Topic: I401k Employer Portion limit 20% or 25% of income
Replies: 23
Views: 1144

Re: I401k Employer Portion limit 20% or 25% of income

I am a one-man LLC, with no common law employees. I apologize for my lack of fluency in the terminology. I am a sole proprietor. Does that sufficiently answer what type of business I am? You can contribute 20% of your net income (adjusted for self-emplyoment tax deductions). This is the same as con...
by avalpert
Sun Jan 15, 2017 4:12 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie question on portolio asset class rebalancing.
Replies: 7
Views: 383

Re: Newbie question on portolio asset class rebalancing.

This is the fundamental argument about why one rebalances. If the fund that has been underperforming continues to then yes you are 'throwing good money after bad." Most of the time, you will be rebalancing from the asset class with the higher expected return to the lower and will be lowering f...
by avalpert
Sun Jan 15, 2017 3:55 pm
Forum: Investing - Theory, News & General
Topic: Shouldn't everyone do a traditional IRA/401k instead of a Roth?
Replies: 132
Views: 7300

Re: Shouldn't everyone do a traditional IRA/401k instead of a Roth?

But really, the ultimate argument for a Roth is this: Simplicity. I don't have to speculate about future tax rates. I know that money is mine without strings attached and immune to future tax policy changes. That is also an argument for putting all your money into inflation-adjusted annuities - no ...
by avalpert
Sun Jan 15, 2017 3:44 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie question on portolio asset class rebalancing.
Replies: 7
Views: 383

Re: Newbie question on portolio asset class rebalancing.

This is the fundamental argument about why one rebalances. If the fund that has been underperforming continues to then yes you are 'throwing good money after bad." Most of the time, you will be rebalancing from the asset class with the higher expected return to the lower and will be lowering fu...
by avalpert
Sun Jan 15, 2017 1:16 pm
Forum: Investing - Help with Personal Investments
Topic: 2016 I-401K employer contribution amount
Replies: 8
Views: 394

Re: 2016 I-401K employer contribution amount

Use the worksheet on page 23 of IRS Pub 560 - it isn't that complicated: https://www.irs.gov/pub/irs-pdf/p560.pdf That numbers seems plausible, but the worksheet will give you the correct answer for your situation. avalpert, Pardon, my ignorance. << Step 4 Enter your rate from the Rate Table for Se...
by avalpert
Sun Jan 15, 2017 12:56 pm
Forum: Investing - Help with Personal Investments
Topic: 2016 I-401K employer contribution amount
Replies: 8
Views: 394

Re: 2016 I-401K employer contribution amount

Use the worksheet on page 23 of IRS Pub 560 - it isn't that complicated: https://www.irs.gov/pub/irs-pdf/p560.pdf That numbers seems plausible, but the worksheet will give you the correct answer for your situation. avalpert, Pardon, my ignorance. << Step 4 Enter your rate from the Rate Table for Se...
by avalpert
Sun Jan 15, 2017 11:47 am
Forum: Investing - Help with Personal Investments
Topic: 2016 I-401K employer contribution amount
Replies: 8
Views: 394

Re: 2016 I-401K employer contribution amount

Use the worksheet on page 23 of IRS Pub 560 - it isn't that complicated: https://www.irs.gov/pub/irs-pdf/p560.pdf

That numbers seems plausible, but the worksheet will give you the correct answer for your situation.
by avalpert
Sun Jan 15, 2017 12:39 am
Forum: Personal Finance (Not Investing)
Topic: Health insurance and LLC
Replies: 10
Views: 611

Re: Health insurance and LLC

1. In my experience, for a 2 person business where neither of you are employees - no they are not. But this has not been in California and health insurance is a local market. 2. Don't know 3. Being an LLC is irrelevant, as a sole proprietor (whether an LLC or not) you can deduct health insurance pre...
by avalpert
Sun Jan 15, 2017 12:31 am
Forum: Personal Finance (Not Investing)
Topic: Annual Vacation Budget
Replies: 261
Views: 16279

Re: Annual Vacation Budget

You have your spreadsheet with priorities and I have mine. I don't expect to change anyone's mind involved in this conversation - you, me, and most of the posters have already decided our priorities. So why exactly did you chose to call the way that others chose to prioritize their spending ridicul...
by avalpert
Sat Jan 14, 2017 11:16 pm
Forum: Investing - Theory, News & General
Topic: Optimal allocation based on holding period
Replies: 5
Views: 538

Re: Optimal allocation based on holding period

You'll have to define what you optimizing for - return, risk-adjusted return, minimum volatility etc.
by avalpert
Sat Jan 14, 2017 10:50 pm
Forum: Personal Finance (Not Investing)
Topic: Out of pocket health care costs - how to pay when traveling overseas?
Replies: 12
Views: 801

Re: Out of pocket health care costs - how to pay when traveling overseas?

How were you planning on paying for other expenses when travelling overseas - why would the answer be different? Normal expenses I will pay with credit card or cash drawn by ATM. But ATM withdrawals are limited by my bank to $500 per day. I have a high enough credit limit on my CCs to cover most co...
by avalpert
Sat Jan 14, 2017 6:20 pm
Forum: Investing - Help with Personal Investments
Topic: Compounding of stock returns
Replies: 14
Views: 1100

Re: Compounding of stock returns

Thanks. That's what I kind of thought. Better leave my portfolio alone until I am no longer working years down the line. Was thinking of taking some gains off the table in the future for car purchase. If you didn't take the money for the purchase from your portfolio where would it come from - or wo...
by avalpert
Sat Jan 14, 2017 6:17 pm
Forum: Personal Finance (Not Investing)
Topic: Out of pocket health care costs - how to pay when traveling overseas?
Replies: 12
Views: 801

Re: Out of pocket health care costs - how to pay when traveling overseas?

It will completely depend on where you are (not just what country but where in the country - same of course is true in the US). Sometimes you will be able to pay by credit card others you will need cash - but this isn't unique to health care costs. How were you planning on paying for other expenses ...
by avalpert
Sat Jan 14, 2017 6:10 pm
Forum: Investing - Help with Personal Investments
Topic: Compounding of stock returns
Replies: 14
Views: 1100

Re: Compounding of stock returns

Say you use dividends for expenses, will this result in a larger than expected reduction due to loss of compounding in returns 20- 30 yrs down the line as opposed to reinvesting? You will have less in 20 years if you spend part of your portfolio whether the money you spent came from dividends or sa...
by avalpert
Sat Jan 14, 2017 5:39 pm
Forum: Investing - Help with Personal Investments
Topic: Value of House in Planning for Retirement
Replies: 46
Views: 3082

Re: Value of House in Planning for Retirement

I'm curious as to what advice any of you folks might have for me in thinking through the value of our house in planning for retirement. Age 56, hoping to retire at 65. Investments almost entirely in VTI and VXUS (and some BRK.B), but starting to load up on BND. House is valued at $650k. Indebtednes...
by avalpert
Sat Jan 14, 2017 4:33 pm
Forum: Investing - Theory, News & General
Topic: Shouldn't everyone do a traditional IRA/401k instead of a Roth?
Replies: 132
Views: 7300

Re: Shouldn't everyone do a traditional IRA/401k instead of a Roth?

One thing I don't see discussed on here is length of time the money will be invested. I am quite young (31) and have a substantial amount of income that puts me in the top or close to the top tax bracket. However, I put all of my savings into ROTH IRAs... including the standard maximum contribution...
by avalpert
Sat Jan 14, 2017 12:07 pm
Forum: Investing - Theory, News & General
Topic: Shouldn't everyone do a traditional IRA/401k instead of a Roth?
Replies: 132
Views: 7300

Re: Shouldn't everyone do a traditional IRA/401k instead of a Roth?

Who would have more income as a retiree than when they're working? a) somebody with a big inheritance b) somebody who lived way below their means and invested wisely c) somebody who was very successful in their career and didn't blow all the money etc. Why should any of that lead to having more inc...
by avalpert
Sat Jan 14, 2017 12:04 pm
Forum: Investing - Theory, News & General
Topic: Shouldn't everyone do a traditional IRA/401k instead of a Roth?
Replies: 132
Views: 7300

Re: Shouldn't everyone do a traditional IRA/401k instead of a Roth?

Who would have more income as a retiree than when they're working? Let's reverse the question. Who would have less income as a retiree than when they're working? If this year while working I am living on X dollars, why would I want to live on 80% of X next year, when I have retired? If I have plann...
by avalpert
Sat Jan 14, 2017 11:34 am
Forum: Investing - Theory, News & General
Topic: Shouldn't everyone do a traditional IRA/401k instead of a Roth?
Replies: 132
Views: 7300

Re: Shouldn't everyone do a traditional IRA/401k instead of a Roth?

Who would have more income as a retiree than when they're working? a) somebody with a big inheritance b) somebody who lived way below their means and invested wisely c) somebody who was very successful in their career and didn't blow all the money etc. Why should any of that lead to having more inc...
by avalpert
Fri Jan 13, 2017 11:33 am
Forum: Investing - Help with Personal Investments
Topic: Amazon???
Replies: 22
Views: 3069

Re: Amazon???

But lets face it brick and mortar is dying. In my opinion this is the future of retail. Online is the future of retail? Better not tell anyone before the market gets wind of that and values the stocks appropriately. Do you think it would also be a good time to short Sears - you know, before the mar...
by avalpert
Thu Jan 12, 2017 3:10 pm
Forum: Personal Finance (Not Investing)
Topic: How to build passive income
Replies: 45
Views: 4296

Re: How to build passive income

Create a blog about something which you have a passion about. If you collect enough hits then advertisers will come to you and want to pay to get space on your site. Here's an example of a Physician who does this successfully -- http://whitecoatinvestor.com/ . He also posts here regularly. Here's t...
by avalpert
Thu Jan 12, 2017 2:33 pm
Forum: Investing - Help with Personal Investments
Topic: Update on mix in DAF for long term?
Replies: 9
Views: 425

Re: Update on mix in DAF for long term?

I don't understand why you would use a donor advised funds for high expected return assets - why not invest in those assets in your own accounts and donate them to the donor advised fund when you want to use them, thus getting a higher tax deduction?
by avalpert
Thu Jan 12, 2017 11:38 am
Forum: Investing - Theory, News & General
Topic: Investing only after a market correction
Replies: 99
Views: 6625

Re: Investing only after a market correction

And there is a study in this thread: https://www.bogleheads.org/forum/viewtopic.php?f=10&t=194427 The purple line later on in the thread tells a very nice story. :) And from that thread, too: This thread is awesome. …. Yes, awesome thread and RodC's post at the end of it best sums up the value ...

Go to advanced search