Search found 151 matches

by crake
Tue Jan 12, 2016 4:19 pm
Forum: Personal Finance (Not Investing)
Topic: Saving for the future vs you only live once
Replies: 72
Views: 7897

Re: Saving for the future vs you only live once

First max your retirement accounts, then spend on things that bring you the most happiness, then save whatever is left in taxable accounts. If you really stop and think about that middle step you'll probably have plenty leftover to save. +1 Save what you are 'supposed' to, and then feel free to blo...
by crake
Mon Nov 23, 2015 3:48 pm
Forum: Investing - Theory, News & General
Topic: Implications of "One Hasn't Lost if One Hasn't Sold"
Replies: 98
Views: 5858

Re: Implications of "One Hasn't Lost if One Hasn't Sold"

Getting back to what I said, if you don't push "sell" it's quite irrelevant. John, Hypothetical situation. A company exists which does not employee anyone, manufacture anything, or perform any other functions which a normal company might participate in. All this company has is 100 million...
by crake
Mon Nov 23, 2015 2:10 pm
Forum: Investing - Theory, News & General
Topic: Implications of "One Hasn't Lost if One Hasn't Sold"
Replies: 98
Views: 5858

Re: Implications of "One Hasn't Lost if One Hasn't Sold"

Firm believer that you haven't lost anything until it's sold just as you haven't gained anything until it's sold. This goes for ANYTHING I don't know how that statement can be anything other than a cognitive distortion. Consider the illogical conclusions of the following two scenarios. Scenario 1: ...
by crake
Mon Nov 23, 2015 12:55 pm
Forum: Investing - Theory, News & General
Topic: Implications of "One Hasn't Lost if One Hasn't Sold"
Replies: 98
Views: 5858

Re: Implications of "One Hasn't Lost if One Hasn't Sold"

My point of view is a change of value is a change of money in its unit of account sense, but not in its medium of exchange or store of value senses. Am I off base? I may be misreading this but I am not sure that it is true. My interpretation of what you are saying is if a stocks price changes it do...
by crake
Mon Nov 23, 2015 12:45 pm
Forum: Investing - Theory, News & General
Topic: Implications of "One Hasn't Lost if One Hasn't Sold"
Replies: 98
Views: 5858

Re: Implications of "One Hasn't Lost if One Hasn't Sold"

Firm believer that you haven't lost anything until it's sold just as you haven't gained anything until it's sold. This goes for ANYTHING I don't know how that statement can be anything other than a cognitive distortion. Consider the illogical conclusions of the following two scenarios. Scenario 1: ...
by crake
Mon Nov 23, 2015 10:16 am
Forum: Investing - Theory, News & General
Topic: Implications of "One Hasn't Lost if One Hasn't Sold"
Replies: 98
Views: 5858

Re: Implications of "One Hasn't Lost if One Hasn't Sold"

Firm believer that you haven't lost anything until it's sold just as you haven't gained anything until it's sold. This goes for ANYTHING I don't know how that statement can be anything other than a cognitive distortion. Consider the illogical conclusions of the following two scenarios. Scenario 1: ...
by crake
Tue Nov 17, 2015 12:31 pm
Forum: Personal Finance (Not Investing)
Topic: What was your eureka! Boglehead moment?
Replies: 86
Views: 7008

Re: What was your eureka! Boglehead moment?

I started my first job in 2010 and I had a 401k with fidelity. Around this time I had also just read the Millionaire Next Door and The Richest Man In Babylon so I understood and bought into the ideas of saving and living below your means, however, I knew very little about investing. Not knowing any ...
by crake
Mon Nov 16, 2015 4:25 pm
Forum: Personal Consumer Issues
Topic: First smartphone recommendations
Replies: 28
Views: 3040

Re: First smartphone recommendations

I've tried out a number of different MVNO's so I can relate some of my experience. I would strongly encourage you to stay away from tracfone based on the following experience. To port my number to tracfone and get a phone activated took approximately 7 days and 8 hours of time with their horrible cu...
by crake
Mon Oct 26, 2015 4:02 pm
Forum: Personal Finance (Not Investing)
Topic: Should I take a hardship withdrawal?
Replies: 17
Views: 1977

Re: Should I take a hardship withdrawal?

Hard to make a recommendation without more info. Withdrawing from your 401k should be a last resort option. Before I did that I would tighten my belt as much as possible(no extraneous expenses at all), work any overtime I can, and even try to find a part time job. 75k shouldn't be an impossible amou...
by crake
Fri Oct 23, 2015 9:15 am
Forum: Personal Finance (Not Investing)
Topic: More advice for BigLaw Survivor, please?
Replies: 111
Views: 8968

Re: More advice for BigLaw Survivor, please?

The one thing that jumps out at me from the analysis is that it doesn't appear to take into account the condo rental; it only mentions the basement rental. The condo currently generates $30k a year in revenue, or $24k after expenses (assuming I pay off the mortgage). I saw this after I posted my la...
by crake
Fri Oct 23, 2015 9:08 am
Forum: Personal Finance (Not Investing)
Topic: More advice for BigLaw Survivor, please?
Replies: 111
Views: 8968

Re: More advice for BigLaw Survivor, please?

On the condo rental, at least from my perspective, it's an entirely different story. Not only is it appreciating nicely while enjoying a positive cash flow, I don't consider it a "450k" investment because I only put 10 percent down when I bought it (I paid 375, putting down only 37.5k). A...
by crake
Wed Oct 21, 2015 3:38 pm
Forum: Personal Finance (Not Investing)
Topic: More advice for BigLaw Survivor, please?
Replies: 111
Views: 8968

Re: More advice for BigLaw Survivor, please?

Congrats on getting out and amassing a sizable net worth! A net worth of 4.8m should be more than enough to retire comfortably. My only word of caution is to make sure you have a good understanding of what your expenses are. Given the description of your career I would assume you were making at leas...
by crake
Wed Oct 21, 2015 11:03 am
Forum: Personal Consumer Issues
Topic: Smartphone for pictures
Replies: 28
Views: 1941

Re: Smartphone for pictures

This might or might not resonate with OP (or other responders), but I am more than satisfied with my Verizon Smartphone (Cost < $20) for spur-of-the-moment photos. I don't have a plan with this phone and use it strictly as a tablet when I am in WiFi zones (which includes my home, of course). Edited...
by crake
Wed Oct 21, 2015 10:38 am
Forum: Personal Consumer Issues
Topic: Smartphone for pictures
Replies: 28
Views: 1941

Re: Smartphone for pictures

Reading the above posts makes me think there has been a lot of hedonic adaptation in peoples expectations of picture quality in the last 5-10 years. I bought my first digital camera 7-8 years ago. It was a highly rated 7MP Pentax. It took excellent pictures, many of which I was able to frame and han...
by crake
Fri Oct 16, 2015 2:43 pm
Forum: Investing - Help with Personal Investments
Topic: Just when i get my strategy together, I stumble on this article..Roth's suck?
Replies: 48
Views: 6944

Re: Just when i get my strategy together, I stumble on this article..Roth's suck?

Given current tax law it is most likely true that traditional accounts are favorable to Roth accounts for most investors. However, I do not know what my future income will be, what my future expenses will be, or what future tax laws will be. As a result I choose to be diversified in my taxable accou...
by crake
Thu Oct 15, 2015 3:07 pm
Forum: Investing - Help with Personal Investments
Topic: to only buy in a correction vs. DCA
Replies: 6
Views: 494

Re: to only buy in a correction vs. DCA

On average the market goes up more often than it goes down. As a result, on average, the longer you wait to invest your money the lower your returns will be.
by crake
Fri Oct 09, 2015 8:32 am
Forum: Investing - Help with Personal Investments
Topic: How to maintain target allocation across multiple accounts?
Replies: 8
Views: 619

Re: How to maintain target allocation across multiple accounts?

Between my wife and I we have a 401k account, a 457b account, a taxable account, and and two Roth IRA's. These accounts are spread across three institutions. Our goal is to maintain a three fund portfolio with a 60/30/10 (Domestic, Int, Bond) AA. To add further complications the 457b account only ha...
by crake
Sun Sep 20, 2015 4:33 pm
Forum: Personal Consumer Issues
Topic: Anyone use pre paid cell phone planns???
Replies: 27
Views: 2536

Re: Anyone use pre paid cell phone planns???

I was with page plus for about 3 years and had great customer service and support. About 3 months ago I found out about a tracfone plan that would actually better fit my usage pattern. To port my number to tracfone and get a phone activated took approximately 7 days and 8 hours of time with their ho...
by crake
Tue Sep 15, 2015 10:08 am
Forum: Investing - Help with Personal Investments
Topic: Potential Flaw in Index funds??
Replies: 30
Views: 3690

Re: Potential Flaw in Index funds??

They did the obligatory slide of seeing how this technique would have worked from 1990-2015 and tactical weighting gave annualized returns of 11.3%/yr vs 10.0% S&P 500. I wouldn't trust anybody that tried those tactics on me. It is very easy to formulate a a successful strategy based on market ...
by crake
Mon Sep 14, 2015 1:16 pm
Forum: Investing - Theory, News & General
Topic: To Buy or Not to Buy the Dividend
Replies: 25
Views: 2170

Re: To Buy or Not to Buy the Dividend

To those analyzing my post, I appreciate the critical feedback, however, I was just trying to find a coy way of stating "It doesn't matter." I don't think one should base investing decisions on whether or not they will have to pay an additional 10 dollars in taxes or potentially earn an ad...
by crake
Mon Sep 14, 2015 1:09 pm
Forum: Personal Consumer Issues
Topic: Lighted Vanity Mirror (LED)–Good idea?
Replies: 12
Views: 875

Re: Lighted Vanity Mirror (LED)–Good idea?

I am hesitant about any integrated lighting/electronic elements in what should be permanent fixtures. I would not want to have to replace a 700 dollar vanity mirror because a couple of cent electronic component in it failed. My recommendation if you don't want an overhead light would be sconces to e...
by crake
Mon Sep 14, 2015 12:00 pm
Forum: Investing - Theory, News & General
Topic: To Buy or Not to Buy the Dividend
Replies: 25
Views: 2170

Re: To Buy or Not to Buy the Dividend

It appears that Vanguard Total Stock Market has a yield of approximately 2%. Divide that by 4 for the quarterly dividend and you get .5%. .5% of $13k is $65. In the 25% tax bracket you will pay 15% in taxes on those 65 dollars for a total of $9.75. If you delay your purchase by 9 days you are missin...
by crake
Tue Aug 25, 2015 4:11 pm
Forum: Investing - Help with Personal Investments
Topic: Fidelity 90-day rule and TLH
Replies: 8
Views: 846

Re: Fidelity 90-day rule and TLH

I would not pay a 0.5% fee to TLH. Just wait another 10-20 days. Most likely the market will not fully recover by then anyway. Avi I agree with AviN. What your proposing sounds like people proclaiming that mortgage interest is a good thing because you can deduct it from your taxes. It doesn't makes...
by crake
Mon Aug 24, 2015 10:40 am
Forum: Investing - Help with Personal Investments
Topic: help with tax loss harvest total international
Replies: 7
Views: 584

Re: help with tax loss harvest total international

TheGipper wrote:
First set dividends to settlement fund.


Why is this step necessary? Once I sell the old fund I shouldn't continue to get dividends from it, correct?
by crake
Mon Aug 24, 2015 10:30 am
Forum: Investing - Help with Personal Investments
Topic: help with tax loss harvest total international
Replies: 7
Views: 584

Re: help with tax loss harvest total international

Thanks for that link Livesoft. I am planning on tax loss harvesting Vanguard Total Int (VTIAX) as well. My plan was to go to Vanguard All World EX-US (VFWAX). What I wasn't entirely clear on was whether it is acceptable to also buy Vanguard Emerging Markets (VEMAX) to properly approximate (VTIAX). W...
by crake
Fri Aug 14, 2015 8:34 am
Forum: Investing - Theory, News & General
Topic: Getting over the hurdle - Two statements conflict
Replies: 30
Views: 1958

Re: Getting over the hurdle - Two statements conflict

These two statements conflict: No one knows the future while history has shown there to be bull and bear cycles. You could say the same thing about a coin flip. No one knows the future while history has shown there to be heads or tails. Do you think that statement conflicts? Just because you know t...
by crake
Thu Jun 18, 2015 3:28 pm
Forum: Personal Finance (Not Investing)
Topic: [Maryland] 1st Time Home Buyer, Suggestions?
Replies: 15
Views: 2499

Re: [Maryland] 1st Time Home Buyer, Suggestions?

I don't view my primary residence as an investment. I value a short commute, but as a consultant-type employee I don't always know which site I'll be positioned at I'm not married, and don't see myself having kids in the near future. I just feel like it's less maintenance and I'm not a DIY guy at a...
by crake
Thu Jun 11, 2015 12:44 pm
Forum: Personal Consumer Issues
Topic: flip phone vs smartphone
Replies: 35
Views: 4875

Re: flip phone vs smartphone

The key with the Tracfone plan will be it will be a plan where you are rewarded for not using your phone. I call it a plan of "scarcity". Especially the data part. You won't be able to use your GPS for very long to soak up 200 mb of data. So you will be rewarded for not using your GPS. At...
by crake
Thu Jun 11, 2015 11:40 am
Forum: Personal Consumer Issues
Topic: flip phone vs smartphone
Replies: 35
Views: 4875

Re: flip phone vs smartphone

I am finally making the switch over to a smart phone. I have been using a Verizon MVNO Pageplus for the past 3 years and have been very happy with the service. I am reluctant to switch out of Verizon because ultimately my phone is meant to call people therefore service trumps all. Up until recently ...
by crake
Fri Apr 24, 2015 10:28 am
Forum: Investing - Theory, News & General
Topic: International Stock Poll: Emerging vs Developed Ratio
Replies: 55
Views: 3756

Re: International Stock Poll: Emerging vs Developed Ratio

I hold in proportion to their market cap weight which I believe is 80/20 DM/EM. I would just hold entirely Vanguard total international but my 401k only offers the Spartan Total International which does not include EM. I added an EM fund to my IRA to compensate.
by crake
Tue Apr 21, 2015 2:05 pm
Forum: Personal Consumer Issues
Topic: Broken Oxygen Sensor on Car
Replies: 43
Views: 3779

Re: Broken Oxygen Sensor on Car

If the car is still under warranty this should be covered. I would fight it. If you don't want to do that an independent mechanic should be able to fix it for under 200 dollars. The dealership is screwing you on the warranty and then screwing you even more on the repair bill. Unless you purposefully...
by crake
Fri Mar 27, 2015 12:59 pm
Forum: Investing - Theory, News & General
Topic: CRR Boston College: "Why I Dropped My Financial Adviser"
Replies: 21
Views: 2766

Re: CRR Boston College: "Why I Dropped My Financial Adviser

I think there is a desperate need for financial planners for the mass affluent (with <1M AUM in assets) market. However, I cannot think of a business model that can provide affordable and reasonably priced service in this market segment, and yet allow financial planners to make a decent living. So ...
by crake
Tue Mar 10, 2015 3:20 pm
Forum: Investing - Theory, News & General
Topic: Rebalancing into a black hole
Replies: 12
Views: 1484

Rebalancing into a black hole

I have been considering a particular risk to the strategy of setting an AA and periodically re balancing. I'll use the three fund portfolio to demonstrate this particular risk. There are many methodologies which can be utilized to choose an Asset Allocation but I would argue they are all basically a...
by crake
Tue Mar 10, 2015 2:43 pm
Forum: Investing - Help with Personal Investments
Topic: Fun Fund?
Replies: 27
Views: 2107

Re: Fun Fund?

It seems like the best way to accomplish what you want (greater return than savings count, no stocks, undefined investing term) would be a municipal bond fund or i-bonds. Regular bond funds lacks tax efficiency which is why you wouldn't want to hold it in a taxable account. If I were you I would als...
by crake
Fri Feb 06, 2015 10:09 am
Forum: Investing - Help with Personal Investments
Topic: Confused about whether to utilize Employer Roth Plan or IRA
Replies: 12
Views: 463

Re: Confused about whether to utilize Employer Roth Plan or

(1) Should I even be continuing to fund Roth accounts? I believe, based upon the Bogleheads wiki, that Roth contributions are still advantageous for us. We expect to remain in high tax brackets for the remainder of our careers and I assume that our taxable income would fall in retirement (I am alwa...
by crake
Fri Feb 06, 2015 9:43 am
Forum: Personal Finance (Not Investing)
Topic: What to do with extra space in 15% bracket
Replies: 7
Views: 1000

Re: What to do with extra space in 15% bracket

3) In my taxable account I have about 50/50 Vanguard total market and Vanguard total int. The boglehead wiki says that it is better to hold international funds in your taxable account because of the foreign tax credit;however in the 15% bracket this doesn't seem to be the case since I am paying 0 t...
by crake
Thu Feb 05, 2015 8:37 pm
Forum: Personal Finance (Not Investing)
Topic: What to do with extra space in 15% bracket
Replies: 7
Views: 1000

What to do with extra space in 15% bracket

So for the first time I actually paid attention to the inputs and outputs of my Tax software to see how the numbers were calculated. I always thought I was in the 25% bracket but I discovered that after all of my retirement contributions, deductions, and exemptions I actually have about 10k worth of...
by crake
Tue Jan 27, 2015 10:20 am
Forum: Personal Consumer Issues
Topic: Ketogenic Diet anyone?
Replies: 22
Views: 1480

Re: Ketogenic Diet anyone?

I believe the ketogenic diet embodies the boglehead way of thinking within the nutrition realm. This method of eating spans millions of years. Yet it blatantly goes against the common recommendations put out of national organizations. I truly believe that in a few years this diet will become more a...
by crake
Mon Jan 05, 2015 5:08 pm
Forum: Investing - Theory, News & General
Topic: Can you make money betting on random coin flips?
Replies: 296
Views: 19458

Re: Can you make money betting on random coin flips?

I'm shocked that a handful of 4-toss trials don't precisely fit the theoretically modeled expected values. Are you suggesting that we should just toss out the theoretically modeled values, then? The conclusions drawn from Shannon's "thought experiment" are the important takeaway here. I w...
by crake
Wed Dec 10, 2014 9:08 am
Forum: Investing - Theory, News & General
Topic: What is your opinion about "tilting?"
Replies: 116
Views: 10727

Re: What is your opinion about "tilting?"

I answered "I don't tilt. I think tilting is actually harmful--is actually inferior to holding the total market." In a friction-less vacuum I think tilting is probably harmless but since it costs more I would say it is probably likely to perform worse on a risk adjusted basis to the total ...
by crake
Thu Dec 04, 2014 6:04 pm
Forum: Investing - Theory, News & General
Topic: Pensions Provide Benefits at Half the Cost of 401Ks
Replies: 16
Views: 1729

Re: Pensions Provide Benefits at Half the Cost of 401Ks

The notion that you have to save/contribute more money in a DC plan than a DB plan for the same benefits is disingenuous. The only way this could be true is if DB plans had lower costs and/or greater returns. The money needs to come from somewhere. The reason why it seems like you need to save/cont...
by crake
Thu Dec 04, 2014 2:27 pm
Forum: Investing - Theory, News & General
Topic: Pensions Provide Benefits at Half the Cost of 401Ks
Replies: 16
Views: 1729

Re: Pensions Provide Benefits at Half the Cost of 401Ks

1) The savings rate for the DC plan needs to be in the range of 31% of annual salary. This means that most contributors probably vastly under-save. With company matches often no more than 4-6%, it is hard to imagine that annual savings rate of the average person is more than 10%, probably often muc...
by crake
Thu Dec 04, 2014 10:06 am
Forum: Investing - Theory, News & General
Topic: Pensions Provide Benefits at Half the Cost of 401Ks
Replies: 16
Views: 1729

Re: Pensions Provide Benefits at Half the Cost of 401Ks

One of the premises in the paper I can agree to is that the vast majority of investors are incapable of managing their own retirement. I used to work at a company that didn't have internet access. In 2011 a co-worker of mine expressed that this put us at a huge investing disadvantage because we coul...
by crake
Thu Dec 04, 2014 9:54 am
Forum: Investing - Theory, News & General
Topic: Pensions Provide Benefits at Half the Cost of 401Ks
Replies: 16
Views: 1729

Re: Pensions Provide Benefits at Half the Cost of 401Ks

I haven't read the whole paper, just the executive summary but it seems to have a significant amount of bias. The author, "William B. (Flick) Fornia is President of Pension Trustee Advisors, Inc., specializing in public sector retirement plans. " 1. A typical DB plan provides equivalent re...
by crake
Wed Nov 19, 2014 4:41 pm
Forum: Investing - Theory, News & General
Topic: Why finance research is often wrong - the jelly bean problem
Replies: 262
Views: 28658

Re: Why finance research is often wrong - the jelly bean pro

Richard Now let's assume the data is found with a tstat of 2 for US stocks. Then you do the data for emerging market stocks and find the same thing. And then for developed markets and then for currencies and then for interest rates/bonds and then for commodities and all the data shows statistical s...
by crake
Fri Nov 07, 2014 9:32 am
Forum: Personal Finance (Not Investing)
Topic: War on Debt
Replies: 247
Views: 35021

Re: War on Debt

Technofox, one of the biggest issues with your budget is it does not account for unexpected expenses. Contrary to what it sounds like, unexpected expenses should be expected. You own a house. You should budget at least 2% of the value of the house for maintenance and repairs. If you don't account fo...
by crake
Thu Nov 06, 2014 9:16 am
Forum: Personal Consumer Issues
Topic: Oil change costs--dealer vs other
Replies: 35
Views: 3343

Re: Oil change costs--dealer vs other

I'm not sure the exact model of your accord but it probably takes about 4 quarts of oil. Decent oil will cost about 5 dollars a quart and a filter is about 10 dollars so to diy would cost about 30 dollars. You also will need an oil filter wrench(10 dollars), and an oil pan (5 dollars). I'm assuming ...
by crake
Wed Nov 05, 2014 12:30 pm
Forum: Personal Consumer Issues
Topic: Anyone using Page Plus Cellular
Replies: 17
Views: 1984

Re: Anyone using Page Plus Cellular

I have no experience with Verizon directly but have been with Page Plus for 3 yrs. I've been very happy with their service. They recently started offering 4G service if that matters. Kitty Wireless (a PP reseller) will be rolling out some new plans in the near future that differ from the basic Page...
by crake
Mon Oct 27, 2014 3:48 pm
Forum: Investing - Help with Personal Investments
Topic: Tilted to SV by mistake, should I TLH out of it?
Replies: 37
Views: 2174

Re: Tilted to SV by mistake, should I TLH out of it?

My recommendation would be to sell the REITS and the SV. You don't seem to be a good candidate for tilting as 6-10% performance lags should be expected somewhat regularly. Put all your US equities in Vanguard Total Stock Market and stop thinking about.
by crake
Mon Oct 27, 2014 2:37 pm
Forum: Investing - Theory, News & General
Topic: Ham and Egger's Theory? [Buy Whatever Cap Size is lagging) ]
Replies: 38
Views: 4704

Re: Ham and Egger's Theory? [Buy Whatever Cap Size is laggin

I will second the other posters recommending you pick an AA and re-balance periodically. If you want to be 100% equities just buy Vanguard Total Stock Market and be done with it. It doesn't make interesting water cooler talk but you are guaranteed market returns for minimal cost. It is also the most...

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