Search found 95 matches

by menlo
Sun May 21, 2017 1:27 pm
Forum: Investing - Help with Personal Investments
Topic: Do you keep extra money available for investing
Replies: 37
Views: 3940

Re: Do you keep extra money available for investing

I have 5-10% of my portfolio value in cash at any given time although it's mostly because I allow cash to accumulate and then lumpsum invest it at a later date in order to re-balance. It's not ideal - it acts like a highly liquid negative yield bond - but I view it as a relatively small issue in the...
by menlo
Sun May 07, 2017 5:10 pm
Forum: Personal Finance (Not Investing)
Topic: Can we afford a 800K house?
Replies: 52
Views: 5768

Re: Can we afford a 800K house?

You can absolutely afford it and the "risk" to you is very low. What's the worst case scenario? That you have to leave the US and the Seattle property market suddenly drops by 35-40%? You can easily withstand that kind of a (unlikely) financial shock given your massive income and earning ability. Bu...
by menlo
Sun Apr 09, 2017 5:58 pm
Forum: Investing - Theory, News & General
Topic: Usefulness of bonds for equity investors who don't necessarily want them?
Replies: 50
Views: 3449

Re: Usefulness of bonds for equity investors who don't necessarily want them?

There is always noise and life is always complicated. You are trying to time the market if you react to those factors. Invest your money the way you want. It's totally your choice. You are deluding yourself however if you think you are 100% equity when you are holding cash earmarked for investment....
by menlo
Sun Apr 09, 2017 5:51 pm
Forum: Investing - Theory, News & General
Topic: Usefulness of bonds for equity investors who don't necessarily want them?
Replies: 50
Views: 3449

Re: Usefulness of bonds for equity investors who don't necessarily want them?

Nothing fundamentally "wrong" with being 100% equity at age 32 other than the benefits are not that great (see klangfools post). I will say that given that you are try to absolutely maximize your returns by avoiding fixed income, you are making a mathematical error by DCA'ing. If your ris...
by menlo
Sun Apr 09, 2017 5:33 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds in Taxable Account (High Tax Bracket)?
Replies: 23
Views: 3316

Re: Bonds in Taxable Account (High Tax Bracket)?

Or MUB which is not a CA fund but a national muni fund. Don't hold such a tiny portion of your portfolio at a completely different custodian. Thanks for the suggestions - on further consideration I agree with you both that it doesn't make much sense to open a new account just to hold a small percen...
by menlo
Sat Apr 08, 2017 3:50 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds in Taxable Account (High Tax Bracket)?
Replies: 23
Views: 3316

Re: Bonds in Taxable Account (High Tax Bracket)?

I use Schwab for my brokerage account and it looks like they don't offer VCADX - only VCAIX. And there's a $76 transaction fee to buy Vanguard funds to boot. So I guess I'd need to open a Vanguard account to get the extra 0.1% in lower expenses for the admiral shares, which can add up ($100 per year...
by menlo
Sat Apr 08, 2017 12:42 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds in Taxable Account (High Tax Bracket)?
Replies: 23
Views: 3316

Re: Bonds in Taxable Account (High Tax Bracket)?

If you are holding all your bonds in your taxable account, you may not want the risk of holding them all in CA. In that case, you could hold half in Vanguard Limited-Term Tax-Exempt, and half in Vanguard CA Long-Term Tax-Exempt. This would put only half the bonds in CA, but would have much more tha...
by menlo
Sat Apr 08, 2017 12:39 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds in Taxable Account (High Tax Bracket)?
Replies: 23
Views: 3316

Re: Bonds in Taxable Account (High Tax Bracket)?

I've heard the argument that for high tax brackets, municipal bonds generate greater returns, but I haven't seen data or reports to convince me that's true. Based on recent performance, I'd say it's close to a wash IMO. The only thing I concluded was DON'T use munis if you're not in a high tax brac...
by menlo
Sat Apr 08, 2017 12:30 pm
Forum: Investing - Theory, News & General
Topic: Why cheaper index funds translate into lower future returns
Replies: 26
Views: 4555

Re: Why cheaper index funds translate into lower future returns

ICI 2016 Facebook, Page 30, Figure 2.2 Institutional and Household Ownership of Mutual Funds (billions of dollars, year-end 2015) Household long-term mutual funds $12,253 Household money-market funds $1,715 Institutional investors long-term mutual funds $645 Institutional investors money-market fun...
by menlo
Sat Apr 08, 2017 12:28 pm
Forum: Investing - Theory, News & General
Topic: Why cheaper index funds translate into lower future returns
Replies: 26
Views: 4555

Re: Why cheaper index funds translate into lower future returns

He actually does tie it to the availability of mutual funds, but his main point is that historically it's been very difficult to buy the entire market and get the average return which has raised the riskiness of stocks. Now, you can easily get the average return, so the risk premium should decrease...
by menlo
Sat Apr 08, 2017 12:03 pm
Forum: Personal Consumer Issues
Topic: Help on how to spend more on myself (First World Whine)
Replies: 93
Views: 7075

Re: Help on how to spend more on myself (First World Whine)

A lot of us on here are analytically inclined and get pleasure out of analyzing and evaluating decisions and trying to optimize outcomes. It may help to approach the spending as a project to be researched and optimized: (1) Create the list of items you're considering buying and list out the pros/con...
by menlo
Sat Apr 08, 2017 10:40 am
Forum: Investing - Theory, News & General
Topic: Why cheaper index funds translate into lower future returns
Replies: 26
Views: 4555

Re: Why cheaper index funds translate into lower future returns

There might be some truth in there but he doesn't show the alternative neither. It seems to me that all he is saying is that there are too many buyers in the market, and expensive investing would have preventing a flood of individual investor. Isn't most of the money on the market institutional any...
by menlo
Sun Apr 02, 2017 12:19 am
Forum: Investing - Help with Personal Investments
Topic: Bonds in Taxable Account (High Tax Bracket)?
Replies: 23
Views: 3316

Re: Bonds in Taxable Account (High Tax Bracket)?

Vanguard has great California Tax-exempt funds which should be free from both Federal and state taxes. https://personal.vanguard.com/us/funds/snapshot?FundIntExt=INT&FundId=0100 for example, or it's Admiral-class sister. There are other terms available too. That's what you hold in your taxable ...
by menlo
Sat Apr 01, 2017 4:06 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds in Taxable Account (High Tax Bracket)?
Replies: 23
Views: 3316

Re: Bonds in Taxable Account (High Tax Bracket)?

You said 35% effective bracket, but that is not the correct approach to making these tax decisions. What is your marginal tax bracket (certainly higher, right?) ? Are you including state taxes? In any case, the answer is definitely not BND in taxable. Livesoft's advice is good. Yes, I was including...
by menlo
Sat Apr 01, 2017 4:02 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds in Taxable Account (High Tax Bracket)?
Replies: 23
Views: 3316

Re: Bonds in Taxable Account (High Tax Bracket)?

No. You should use tax-exempt bonds in taxable. Read this please: https://www.bogleheads.org/forum/viewtopic.php?p=3175638#p3175638 Thanks. I took a look through the advice in the thread and I didn't see an analysis of why tax-exempt bonds would be preferable for me compared to BND. I live in CA so...
by menlo
Sat Apr 01, 2017 3:33 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds in Taxable Account (High Tax Bracket)?
Replies: 23
Views: 3316

Bonds in Taxable Account (High Tax Bracket)?

I've been having difficulty meeting the modest 10% bond target in my AA because I've been following the bonds-in-tax-advantaged-accounts rule and (1) I don't have a lot of tax advantaged space relative to amount of taxable investments and (2) I didn't want to hold solely or mostly bonds in my tax ad...
by menlo
Sat Apr 23, 2016 4:31 pm
Forum: Personal Finance (Not Investing)
Topic: Question for the Bogleheads Millionaires
Replies: 372
Views: 66088

Re: Question for the Bogleheads Millionaires

Well, being a millionaire living in the San Francisco Bay Area, I feel rather "poor" on most days. According to a recent Charles Schwab study, one needs a net worth of at least $6 million to feel "wealthy" in this area. Repeating the posting of my favorite chart to show how intr...
by menlo
Sun Mar 27, 2016 6:29 pm
Forum: Personal Consumer Issues
Topic: Buying a House - SF Bay Area [bayareabuyer]
Replies: 53
Views: 8325

Re: Buying a House - SF Bay Area [bayareabuyer]

For those looking to buy in the Bay Area, this is a very interesting read - the article tracks the last 30 years in housing prices locally. The main takeaways are that (1) there was a 25% decline at the high-end market after the 2006/07 crash, even though it was much lower than at the low-end of the...
by menlo
Sat Mar 29, 2014 1:07 pm
Forum: Personal Finance (Not Investing)
Topic: Buying first home in SF - gut check
Replies: 93
Views: 13565

Re: Buying first home in SF - gut check

My wife and I are considering purchasing our first home in San Francisco. A little bit about us: Age: Both 28 Jobs: stable Income: ~$430k with vesting RSUs. If you consider salary only then ~$230k Portfolio: $2.5M (mostly diversified index funds but a small amount of that is vested company stock th...
by menlo
Thu Feb 20, 2014 11:00 pm
Forum: Investing - Theory, News & General
Topic: $16 Billion for WhatsApp?!?!?!
Replies: 51
Views: 5247

Re: $16 Billion for WhatsApp?!?!?!

It seems to me like Facebook is greatly overpaying. But, then, I thought the same thing about the $1 billion Facebook paid for Instagram, which apparently is growing like gangbusters and is estimated to be on pace for between $250-$450 million in revenue this year (Facebook doesn't disclose the numb...
by menlo
Mon Jan 20, 2014 7:11 pm
Forum: Personal Finance (Not Investing)
Topic: Rent and save for next 5 years or stretch now?
Replies: 38
Views: 3802

Re: Rent and save for next 5 years or stretch now?

grantham, if I were you I would continue to invest in your career -- your greatest asset, by far -- by staying in the Bay Area and developing your skills and networking. I'd also continue to rent until you've saved up more for retirement and for a down payment. Don't think of renting as throwing awa...
by menlo
Wed Jan 01, 2014 1:29 pm
Forum: Personal Consumer Issues
Topic: What is your winter thermostat setting (while you are up)?
Replies: 116
Views: 12341

Re: What is your winter thermostat setting (while you are up

This poll has inspired me to raise the thermostat from 64 to 67. Why not splurge a little in life?
by menlo
Wed Jan 01, 2014 1:27 pm
Forum: Personal Finance (Not Investing)
Topic: At what age did your portfolio hit $1M?
Replies: 33
Views: 6118

Re: At what age did your portfolio hit $1M?

For those who want to adjust for inflation, here's the equivalent of $1M in 2013 in each of the past few decades:
  • 2013 = $1,000,000
  • 2000 = $740,000
  • 1990 = $560,000
  • 1980 = $350,000
  • 1970 = $165,000
http://data.bls.gov/cgi-bin/cpicalc.pl
by menlo
Mon Aug 12, 2013 11:53 am
Forum: Investing - Theory, News & General
Topic: Why You Need an Investment Philosophy.
Replies: 7
Views: 905

Re: Why You Need an Investment Philosophy.

nvboglehead wrote:I am very grateful to have found this community!Dale


Me too! I'm not given to hyperbole, but this community really is amazing.
by menlo
Mon Aug 12, 2013 11:43 am
Forum: Investing - Help with Personal Investments
Topic: 75% equity is max?
Replies: 48
Views: 7269

Re: 75% equity is max?

http://www.bogleheads.org/wiki/File:TrinityTable3.jpg It's not the same for an accumulator, I realize, but the Trinity study still shows off the relative similarity of 100 and 75/25 as allocations in terms of SWR, and how being in the 75/25 to 25/75 range in general helps get rid of pesky outliers....
by menlo
Fri Jul 19, 2013 12:13 pm
Forum: Investing - Help with Personal Investments
Topic: I think I just won the game … have I and what do I do next?!
Replies: 55
Views: 9818

Re: I think I just won the game … have I and what do I do ne

Congratulations, you definitely "won the game" of securing financial independence and a comfortable retirement. If I were in your situation I would not change much in terms of how you currently invest. I would sell the second home (just to not have to deal with being a landlord) and put th...
by menlo
Mon Jul 15, 2013 10:33 am
Forum: Personal Finance (Not Investing)
Topic: How to get over finance envy
Replies: 167
Views: 23314

Re: How to get over finance envy

I am trying to figure out how to get over envy incurred from reading Boglehead's threads related to savings rates and incomes. I love the collective wisdom of the board, but I could go a lifetime without reading another Boglehead thread as it relates to how much people do or do not make. Don't feel...
by menlo
Fri Jul 12, 2013 10:09 am
Forum: Personal Finance (Not Investing)
Topic: How to get over finance envy
Replies: 167
Views: 23314

Re: How to get over finance envy

I don't particularly envy others' lavish spending or fancy baubles, probably because of a somewhat frugal inclination (although I like a nice sports car as much as the next guy). But I do feel a reasonable amount of status/wealth envy because of where I live and the extraordinary success people my a...
by menlo
Thu Jul 11, 2013 7:57 pm
Forum: Investing - Theory, News & General
Topic: The best investment advice you'll never get
Replies: 11
Views: 3107

Re: The best investment advice you'll never get

Yes, a great article, thanks. Adding the imprimatur of Google's management to the advice deliverd by Sharpe, Malkiel and Bogle probably helped the employees to accept the message of low cost indexing more than they might otherwise have been inclined to. Very smart.
by menlo
Thu Jul 11, 2013 7:44 pm
Forum: Investing - Help with Personal Investments
Topic: Please help with asset allocation plan
Replies: 18
Views: 1492

Re: Please help with asset allocation plan

I just received an inheritance of about $200k. I am planning on investing it for 7-10 years (I then plan on buying a home in cash and I am flexible about when I actually do that) In the meantime, I will not need any of this money for my day to day expenses and I already have an emergency fund. I am...
by menlo
Tue Jul 02, 2013 5:54 pm
Forum: Personal Consumer Issues
Topic: Safety schools for a Physics/Math kid
Replies: 264
Views: 27606

Re: Safety schools for a Physics/Math kid

If you're looking for "safety" schools you probably want to consult the admission rates as a first (or at least second) step. Some of the schools that people mention are probably far from safe even for competitive applicants. Georgia Tech at 39% is much more of a safety than, say, UNC at 2...
by menlo
Mon Jul 01, 2013 11:08 am
Forum: Investing - Theory, News & General
Topic: Sub-emerging Markets: All that's left is the crying
Replies: 62
Views: 7504

Re: Sub-emerging Markets: All that's left is the crying

I also over-weight EM vs. DM (40/60, I think) and -- honestly -- I made that decision in view of its remarkable growth the several prior years and based on some loose justifications for why it should continue to outperform in the future. However, like others in this thread, I'm planning to stick to ...
by menlo
Mon Jul 01, 2013 10:36 am
Forum: Investing - Help with Personal Investments
Topic: Best asset allocation book to read?
Replies: 21
Views: 7648

Re: Best asset allocation book to read?

I am a newbie to AA myself, and I liked "The Intelligent Asset Allocator", by William Bernstein. One more vote for Bernstein's "The Intelligent Asset Allocator." The only thing to note is that the correlation data in the book is quite dated, and Bernstein's latest pamphlets disc...
by menlo
Tue Jun 25, 2013 5:13 pm
Forum: Investing - Theory, News & General
Topic: AAPL - Great Investment or Value Trap
Replies: 26
Views: 3545

Re: AAPL - Great Investment or Value Trap

In the same article: "A BCN report released on the same day, though, found that the last four weeks have seen a reversal in Sony's fortunes, according to Bloomberg. Tokyo-based BCN, which relies on sales figures from more than 2,000 retail outlets, found that Sony smartphones represented 36 pe...
by menlo
Tue Jun 25, 2013 2:17 pm
Forum: Investing - Theory, News & General
Topic: Do you do tax loss harvesting?
Replies: 40
Views: 2344

Re: Do you do tax loss harvesting?

If you have a valid alternative to VWO by all means don't let the size of the swap stop you. In fact, if the alternative is very valid (i.e. superior) you may want to swap everything, were it not for those capital gains. In general, though, TLH is done from a favoured security to another one which ...
by menlo
Tue Jun 25, 2013 2:15 pm
Forum: Investing - Theory, News & General
Topic: AAPL - Great Investment or Value Trap
Replies: 26
Views: 3545

Re: AAPL - Great Investment or Value Trap

We were in Tokyo and Hong Kong earlier this year and Galaxy is very popular there, much more so than iphone. Apple is currently dominating smartphone sales in Japan, so your observations in Tokyo likely are abberational or reflect older sales patterns. I'm not sure about Hong Kong. In the first qua...
by menlo
Tue Jun 25, 2013 12:30 pm
Forum: Investing - Theory, News & General
Topic: Do you do tax loss harvesting?
Replies: 40
Views: 2344

Re: Do you do tax loss harvesting?

The optimal way is to use specific identification and sell only those shares that give you a loss. Practical rule is to look at how much capital you have to move compared to the reported loss. $3,000 by selling 10/20k go for it, but if you have to sell half a mil worth of shares... Thanks. So you t...
by menlo
Tue Jun 25, 2013 12:23 pm
Forum: Investing - Theory, News & General
Topic: AAPL - Great Investment or Value Trap
Replies: 26
Views: 3545

Re: AAPL - Great Investment or Value Trap

The reason to own Apple is that you're willing to make a bet on its future performance that's different than the bet the broader market is making. The market, like you, already knows that AAPL is priced at a low P/E, has a high book-value-to-share, has tremendous cash flow, enviable GMs, etc. But ne...
by menlo
Mon Jun 24, 2013 5:04 pm
Forum: Investing - Theory, News & General
Topic: Do you do tax loss harvesting?
Replies: 40
Views: 2344

Re: Do you do tax loss harvesting?

I just tax loss harvested for the first time last week from VWO to IEMG. Any rules of thumb for how much to TLH when you have losses? For example, if all of my emerging markets index funds have unrealized losses (and it generally makes sense to TLH in the first place, based on current tax rates, etc...
by menlo
Mon Jun 24, 2013 4:54 pm
Forum: Investing - Help with Personal Investments
Topic: How About: TLH Emerging Index to Emerging Select at VG?
Replies: 11
Views: 830

Re: How About: TLH Emerging Index to Emerging Select at VG?

Much like you tell posters to "get with the times" by owning more international, I will give you the same advice and suggest you get with the ETF game and swap it into IEMG. Please note that I am teasing you but I'm serious that IEMG is the best choice. grap I just did this myself. Late l...
by menlo
Thu Jun 20, 2013 3:11 pm
Forum: Investing - Help with Personal Investments
Topic: Things are getting interesting...
Replies: 12
Views: 2173

Re: Things are getting interesting...

I took the opportunity to tax loss harvest from VWO to IEMG.
by menlo
Wed Jun 19, 2013 12:44 pm
Forum: Investing - Theory, News & General
Topic: A thought on net worth 'skewedness'
Replies: 53
Views: 4742

Re: A thought on net worth 'skewedness'

Many (most?) people who get professional degrees (MD, JD, MBA) fall into category A for at least a while in their 20s and 30s. They take out student loans ("lever up" ha!) to acquire a non-tangible asset based on the bet that doing so will have positive financial returns. It would be inter...
by menlo
Tue Jun 18, 2013 12:20 pm
Forum: Investing - Theory, News & General
Topic: Do commodities/CCFs belong in an investment portfolio?
Replies: 49
Views: 3668

Re: Do commodities/CCFs belong in an investment portfolio?

hardly new, but an interesting article on the topic m Great article, afan, thanks for posting that. I only skimmed it, but it seems well sourced and even handed. The conclusion seems to be that investing in commodities is a bet that you can get a meaningful diversification return (defined as "...
by menlo
Sun Jun 16, 2013 4:15 pm
Forum: Personal Consumer Issues
Topic: Beef brisket
Replies: 53
Views: 8153

Re: Beef brisket

In my experience the keys to smoking brisket are reasonably steady temperature over long periods of time (18+ hrs), and getting cuts with plenty of fat on top to melt into the meat (to avoid having the meat end up like shoe leather). If you have the stamina for it, it's best to smoke over night and ...
by menlo
Fri Jun 14, 2013 10:52 pm
Forum: Personal Finance (Not Investing)
Topic: Your worst financial habit
Replies: 84
Views: 12638

Re: Your worst financial habit

I sometimes market time my investment contributions (let money sit in my savings accounts and invest on market dips); I sometimes have difficulty sticking to my AA (particularly with increasing my bond allocation); and I perseverate about my AA even though the small shifts I'm concerned with probabl...
by menlo
Fri Jun 14, 2013 10:40 pm
Forum: Personal Finance (Not Investing)
Topic: What age did you reach 100K networth?
Replies: 299
Views: 61033

Re: What age did you reach 100K networth?

Around age 28 or so.
by menlo
Mon Jun 03, 2013 3:34 pm
Forum: Investing - Theory, News & General
Topic: Argument for a 100% stock allocation for 20 yr horizon
Replies: 112
Views: 10926

Re: Argument for a 100% stock allocation for 20 yr horizon

I believe that 100/0 is ill-advised for anyone. For one thing, the behavioral issue is that if you take too much risk and the market crashes, you will bail out and never come back. For what it's worth: I've only recently read Common Sense on Mutual Funds, and yesterday was reviewing parts of it. Bo...
by menlo
Mon Jun 03, 2013 9:18 am
Forum: Investing - Theory, News & General
Topic: Argument for a 100% stock allocation for 20 yr horizon
Replies: 112
Views: 10926

Re: Argument for a 100% stock allocation for 20 yr horizon

Actually, you have this backwards. "It probably doesn't matter" does not mean it's the right thing to do. The usual perception that you need to be more conservative when you have more money at stake is wrong, in my opinion. As Zvi Bodie and others point out, it's when you have less money ...
by menlo
Sun Jun 02, 2013 4:16 pm
Forum: Investing - Theory, News & General
Topic: Argument for a 100% stock allocation for 20 yr horizon
Replies: 112
Views: 10926

Re: Argument for a 100% stock allocation for 20 yr horizon

How about factoring in human capital? I think the best argument for holding a higher risk, higher expected return portfolio when young is that your human capital dwarfs your financial capital. Therefore your ability to take risk is much higher, since you have many years to convert human capital int...
by menlo
Mon May 27, 2013 8:08 pm
Forum: Investing - Theory, News & General
Topic: What if you bought apple shares instead of a G4 in 2003?
Replies: 21
Views: 3033

Re: What if you bought apple shares instead of a G4 in 2003?

What if you would have created a supercomputer if only you'd had the G4? But instead you were designing it, on a pc, that was like beep beep beep beep, like half of your supercomputer was gone .. and I was like — it devoured your supercomputer. And it was a really good supercomputer. And then you h...