Search found 639 matches

by msk
Sat Feb 24, 2018 3:07 am
Forum: Personal Finance (Not Investing)
Topic: 2 kids starting Grad School. How to support equally
Replies: 7
Views: 660

2 kids starting Grad School. How to support equally

Just looking for corroborating wisdom: I set aside $200k for my two youngest kids when they were still in grade school (mostly in SPY and BRK) to fund their future college days. Now, more than a decade later, they are getting their BSc's this Spring from the same university and both plan to start gr...
by msk
Thu Feb 22, 2018 9:57 pm
Forum: Investing - Help with Personal Investments
Topic: Balance in Marriage and Student Loans
Replies: 26
Views: 1766

Re: Balance in Marriage and Student Loans

Just because a husband is profligate with money does not make him an unworthy husband. We have to accept our partners the way they are, not the way we wish them to be, and find ways to live with it.
by msk
Thu Feb 22, 2018 9:42 am
Forum: Investing - Help with Personal Investments
Topic: Balance in Marriage and Student Loans
Replies: 26
Views: 1766

Re: Balance in Marriage and Student Loans

I have no clue as to how much of the world is community property in marriages and how much is separation of property, but I certainly feel that arguments about spending are very common within married couples under both jurisdictions. A prenup introduces a bad taste in a community property jurisdicti...
by msk
Thu Feb 22, 2018 5:17 am
Forum: Personal Finance (Not Investing)
Topic: Looking into Hands Off Commercial Real Estate
Replies: 14
Views: 1327

Re: Looking into Hands Off Commercial Real Estate

Methinks that the only people who should invest in RE are those who are willing to put 100% of their NW into it (actually more like 300 to 500%, after gearing) and have both the time and the temperament to do so. Young and ambitious, whether full time or part. Been there part time between my late 20...
by msk
Thu Feb 22, 2018 2:25 am
Forum: Personal Consumer Issues
Topic: 2018 Merc S560, 2018 Lexus LS500 Discounts?
Replies: 39
Views: 4592

Re: 2018 Merc S560, 2018 Lexus LS500 Discounts?

OK folks, here's what happened. Took almost 5 months from ordering to delivery! The Lexus LS500 was delivered Jan 24th and the Mercedes S560L three weeks later. DW was kind enough to let me use the Lexus while waiting for the Mercedes. So by now I have a reasonable grasp of what makes both cars tick...
by msk
Thu Feb 22, 2018 1:08 am
Forum: Investing - Theory, News & General
Topic: Interactive Brokers fee structure for passive investors
Replies: 36
Views: 2461

Re: Interactive Brokers fee structure for passive investors

Just a heads up for non US investors. There are a few ETFs that are Ireland-based (Nil exposure to US estate tax) and are accumulative (in-built dividend reinvestment) hence no routine intervention required of the investor, and no regular commissions to be paid. Personally I have settled on just two...
by msk
Wed Feb 21, 2018 12:27 am
Forum: Personal Finance (Not Investing)
Topic: Paying off $372000 mortgage in 12 months
Replies: 43
Views: 6226

Re: Paying off $372000 mortgage in 12 months

Seems to me that for a RENTAL property, one ought to aim for a situation that the deductable outgoings (property taxes/interest/maintenance/etc.) ought to just balance the rent received. That way you get the maximum deductions with the least loan outstandings. You then take new loans/mortgages to pu...
by msk
Tue Feb 20, 2018 2:35 am
Forum: Personal Finance (Not Investing)
Topic: Paying off $372000 mortgage in 12 months
Replies: 43
Views: 6226

Re: Paying off $372000 mortgage in 12 months

I have always considered paying off principal (not interest) on my home mortgage as part of my target of "saving and investing" 30% of my after tax income. The "profit" you make on your home is the possible price appreciation (unless you are unlucky it should at least keep up with inflation) plus th...
by msk
Tue Feb 20, 2018 2:18 am
Forum: Investing - Theory, News & General
Topic: Interactive Brokers fee structure for passive investors
Replies: 36
Views: 2461

Re: Interactive Brokers fee structure for passive investors

I'm using IB UK for buy and hold and I'm happily paying the $10 until I have $100k with them. How do you know that you are using IB UK? I use IB and have bought Ireland based ETFs, but I have no clue which country "my" IB is based in :confused Service seems to be available 24/7 and can be from Sing...
by msk
Tue Feb 20, 2018 2:04 am
Forum: Personal Finance (Not Investing)
Topic: Looking for some help and fast (buying vs renting, net worth)
Replies: 52
Views: 3337

Re: Looking for some help and fast (buying vs renting, net worth)

Actually, the original post presented an unrealistic proposition. We have no clue how the market situation will be one year from now, never mind in 30 years. The chap who was willing to rent out the presumably fancy house (so the owner was probably not a financial ignoramus) was willing to rent it o...
by msk
Sun Feb 18, 2018 6:46 am
Forum: Personal Finance (Not Investing)
Topic: Monthly Stipends (Now) to Future Heirs?
Replies: 10
Views: 1502

Re: Monthly Stipends (Now) to Future Heirs?

Thanks all for the thoughtful comments. Indeed my heirs have a wide spread in income levels. I accept the lifestyle creep of the lowest earners since regular help or aid is meant to salve life's difficult moments and if one makes not much higher than minimum wage there are frequent such moments. I c...
by msk
Sat Feb 17, 2018 2:17 am
Forum: Personal Finance (Not Investing)
Topic: Monthly Stipends (Now) to Future Heirs?
Replies: 10
Views: 1502

Monthly Stipends (Now) to Future Heirs?

First, thanks to all the BHs who commented on my tortuous quandary regarding how to structure a "trust" that will help my grown-up kids (and the grand kids) while I am still alive. Advised to steer clear, for numerous reasons. Done; hence revised approach. We live a fairly frugal lifestyle given our...
by msk
Fri Feb 16, 2018 2:04 am
Forum: Personal Finance (Not Investing)
Topic: How to get child's skin in the game for college?
Replies: 135
Views: 6488

Re: How to get child's skin in the game for college?

I find all this skin in the game for college education rather sad. IF you can afford paying 100%. You were happy to support her 100% for the past 17 years; why baulk at the final year in college? At college it becomes clearer as to what turns her on, hopefully not drugs. She will pay full attention ...
by msk
Thu Feb 15, 2018 8:21 am
Forum: Investing - Help with Personal Investments
Topic: 4% rule and early retirement?
Replies: 69
Views: 8374

Re: 4% rule and early retirement?

We all wish to have some rule that will last forever, even if one lives to 120 :shock: An excellent strategy is having the WR as a percentage of the portfolio, not as a percentage at some, possibly decades ago, retirement date. Taking a percentage of that year's portfolio value will last forever, bu...
by msk
Thu Feb 15, 2018 12:37 am
Forum: Investing - Help with Personal Investments
Topic: Gut check: is this lifestyle creep?
Replies: 37
Views: 5470

Re: Gut check: is this lifestyle creep?

YOLO! Save and invest 30% of all after tax income. Payment of principal (not interest) on your home's mortgage counts as saving and investing, not on consumables like cars. Blow the rest on any toys you desire. Worked for me. Retired at 55.
by msk
Wed Feb 14, 2018 12:40 am
Forum: Personal Finance (Not Investing)
Topic: The value of car body repairs/upkeep of older cars?
Replies: 33
Views: 2777

Re: The value of car body repairs/upkeep of older cars?

There is a huge difference between repairing for cosmetic looks and repairing because a significant portion of the body is rusting away in unseen places. The colder your climate is, the worse the situation. Many years ago when I was living in Canada, I had some rust spots appearing on top of the fro...
by msk
Sun Feb 11, 2018 1:26 am
Forum: Personal Consumer Issues
Topic: Does it ever make sense to buy a new car?
Replies: 103
Views: 6446

Re: Does it ever make sense to buy a new car?

On the upside I make over 200k and could easily pay it off quickly, I’d be getting every safety/convenience feature I want, and would get the benefit of the new warranty. You make $200k p.a. Let me assume it's after tax. Board and lodging costs, say, $70k, saving and investing another $60k (30%). W...
by msk
Sun Feb 11, 2018 12:41 am
Forum: Investing - Theory, News & General
Topic: Help me understand the low volatility premium
Replies: 7
Views: 826

Re: Help me understand the low volatility premium

These are the prices I see right now. SPY is at 262.4 (i.e. SP500 is at 2624) so, let's say you wish to benefit bigly from a rise above SPY 260: within one year to Jan 18 2019 Price of Call is $20 or 7.7% within 2 years to Jan 17 2020 Price of Call is $29 or 11% within 3 years to Dec 18 2020 Price o...
by msk
Sat Feb 10, 2018 2:49 am
Forum: Investing - Theory, News & General
Topic: Help me understand the low volatility premium
Replies: 7
Views: 826

Re: Help me understand the low volatility premium

Let's be blunt. We don't care about volatility upwards (we love it!) but we do feel great pain from volatility downwards :mrgreen: There are hundreds/thousands of quants who make their living by calculating the price of volatility minute by minute. What one can do to limit volatility downwards to ze...
by msk
Sat Feb 10, 2018 1:46 am
Forum: Investing - Help with Personal Investments
Topic: Can non US citizen create corporation in US to invest in vanguard
Replies: 39
Views: 3428

Re: Can non US citizen create corporation in US to invest in vanguard

Trading on Ireland based ETFs close earlier in the day (UK local time?) than US based ETFs (Eastern US time?). That may explain minor differences in daily gains/losses following sessions with great volatility.
by msk
Fri Feb 09, 2018 7:44 am
Forum: Personal Finance (Not Investing)
Topic: Do Trust Deeds have to be registered by a government?
Replies: 7
Views: 792

Re: Do Trust Deeds have to be registered by a government?

Also, when we create a trust, it must be signed by the grantor(s) (the person(s) putting assets into the trust) in the presence of a notary who also signs and uses a government-issued stamp to mark the signature page. The notary first verifies the identify of the signers using a government-issued p...
by msk
Fri Feb 09, 2018 1:13 am
Forum: Investing - Theory, News & General
Topic: RBD alert [Really Bad Day]
Replies: 86
Views: 10076

Re: RBD alert [Really Bad Day]

So far only -10% from peak? Yawn. Wake me up when it reaches -20%, first little action in my investment plan; next at -30%, more aggressive action, next at -35%, next at -40%... Each BUY will get steadily more aggressive (buying Calls using margin). I am already 100% stocks :mrgreen: I am absolutely...
by msk
Fri Feb 09, 2018 12:48 am
Forum: Personal Finance (Not Investing)
Topic: Do Trust Deeds have to be registered by a government?
Replies: 7
Views: 792

Re: Do Trust Deeds have to be registered by a government?

In the US, there is no such thing as registering your trust with the government, so we probably can't relate to the stories you've heard. And I don't think it is possible to compare an informal trust created 50 or 100 years ago with once that might be started now. Society is different. Laws are dif...
by msk
Thu Feb 08, 2018 3:02 am
Forum: Personal Finance (Not Investing)
Topic: Do Trust Deeds have to be registered by a government?
Replies: 7
Views: 792

Re: Do Trust Deeds have to be registered by a government?

My stance is shaped by my numerous contemporaries (ages 70 to 85) who have experienced Family Trusts. ALL had pleasant experiences with "informal" trusts that were managed by family members (from the times of their grandfathers 50 to 100+ years ago. None complained of untrustworthy trustees. Yes, an...
by msk
Thu Feb 08, 2018 1:50 am
Forum: Investing - Help with Personal Investments
Topic: Can non US citizen create corporation in US to invest in vanguard
Replies: 39
Views: 3428

Re: Can non US citizen create corporation in US to invest in vanguard

SWDA is quoted in GBP (Pence!), IWDA is quoted in $. I have not checked but I expect that any moment the conversion of GBP pence to USD will give you the same price.At this time Bloomberg quotes are: SWDA 3939.5 IWDA 54.715 USD/GBP 1.3898 Convert the SWDA GBP pence to USD, you get $54.75 Close enoug...
by msk
Wed Feb 07, 2018 9:37 am
Forum: Investing - Help with Personal Investments
Topic: Can non US citizen create corporation in US to invest in vanguard
Replies: 39
Views: 3428

Re: Can non US citizen create corporation in US to invest in vanguard

I have a very similar situation but with no tax treaty with the USA. What I did: Liquidated all my holdings in TDAmeritrade, opened an account at IB. This account is Joint with Survivor Rights (with my wife) Mulled over between VWRD and Black Rock/iShares, all Ireland domiciled. Chose iShares becaus...
by msk
Wed Feb 07, 2018 1:56 am
Forum: Personal Finance (Not Investing)
Topic: Do Trust Deeds have to be registered by a government?
Replies: 7
Views: 792

Do Trust Deeds have to be registered by a government?

Scenario: I wish to set up a irrevocable trust for the benefit of my children, grandchildren and their offspring. Because they are scattered in various countries, each with its own tax systems, I do not wish for any government to be involved in setting up the trust. It so happens that my chosen two ...
by msk
Wed Feb 07, 2018 12:29 am
Forum: Personal Finance (Not Investing)
Topic: Am I saving too much for retirement?
Replies: 105
Views: 12443

Re: Am I saving too much for retirment?

My childhood buddy and I decided at around age 30 that we were saving and investing too much, and that we should limit saving and investing to 30% of after tax income. YOLO. We both did well, both retired at 55, now at 73, and both have 8 figure NW from, like for most people, essentially zero NW in ...
by msk
Tue Feb 06, 2018 3:45 am
Forum: Personal Consumer Issues
Topic: Sent a letter without country
Replies: 6
Views: 708

Re: Sent a letter without country

Should get there fine provided the same city name does not occur in numerous countries! Once DW addressed a letter to me with the address: My Name, Montreal. I received it with the normal postage delay. Obviously the kind postman did not have to choose between 5000 Smiths...
by msk
Tue Feb 06, 2018 3:10 am
Forum: Investing - Theory, News & General
Topic: Where Are The 100% Equity Bulls? BND up .44%
Replies: 47
Views: 4680

Re: Where Are The 100% Equity Bulls? BND up .44%

Hmmnnn. Strange that stocks go down because, supposedly, there is fear that interest rates are about to go up. Interest rates going up means that bonds will go down :oops: Perhaps there is something I am missing in all this. Or perhaps the talking heads have no clue as to why stocks went down :confu...
by msk
Tue Feb 06, 2018 12:24 am
Forum: Personal Consumer Issues
Topic: Life Balance of spending and saving
Replies: 54
Views: 4595

Re: Life Balance of spending and saving

If you ever wish for a pool, get it asap before the kids grow up and lose all interest in it. From my own and friends' experiences, pools seem to have a lifespan of desirability of around 3 years. Beyond 3 years there is so little use that a pool becomes just a money pit. The 3 years will extend so...
by msk
Mon Feb 05, 2018 10:41 pm
Forum: Personal Consumer Issues
Topic: Potential employer wants me to give offer - how to respond?
Replies: 63
Views: 5819

Re: Potential employer wants me to give offer - how to respond?

You are reasonably happy at your current job. There is always a comp level that would make you "consider" a move but still turn down the offer. There is also a much higher level that would make you jump at the offer. You decide somewhere between the two and ask for that. You get it, you move. Otherw...
by msk
Mon Feb 05, 2018 10:15 pm
Forum: Investing - Theory, News & General
Topic: Request perspective on career, life, and finance
Replies: 16
Views: 3414

Re: Request perspective on career, life, and finance

Just a side comment about AI. Some of the above discussion reminds me of my undergrad buddies and their careers over the past decades. We all did Honors degrees in Physics, Class of 1966. Recently we had a reunion. I was astonished that the majority had ended up in IT, because in the 1960s physicist...
by msk
Sat Feb 03, 2018 1:21 am
Forum: Investing - Help with Personal Investments
Topic: Have Enough, Should I now time market?
Replies: 31
Views: 3968

Re: Have Enough, Should I now time market?

Would appreciate thoughts! If you have enough to support yourself in retirement (assuming 3% annual inflation) and you know there will be a correction to the economy and market, should you cash out at some point and watch from the sidelines. If I understand Merriman, even he market times to a degre...
by msk
Sat Feb 03, 2018 12:33 am
Forum: Personal Finance (Not Investing)
Topic: Can I afford this house?
Replies: 50
Views: 4374

Re: Can I afford this house?

I am 73, retired at 55. Looking back since my pauper days youth 5 decades back, I followed a few rules-of-thumb that worked well for me while living in HCOL and LCOL locations worldwide and I preach endlessly to my kids (unfortunately I don't think they listen): 1. Save and invest 30% of after tax i...
by msk
Sat Feb 03, 2018 12:15 am
Forum: Personal Consumer Issues
Topic: Life Balance of spending and saving
Replies: 54
Views: 4595

Re: Life Balance of spending and saving

If you ever wish for a pool, get it asap before the kids grow up and lose all interest in it. From my own and friends' experiences, pools seem to have a lifespan of desirability of around 3 years. Beyond 3 years there is so little use that a pool becomes just a money pit. The 3 years will extend som...
by msk
Wed Jan 31, 2018 2:53 am
Forum: Investing - Theory, News & General
Topic: Request perspective on career, life, and finance
Replies: 16
Views: 3414

Re: Request perspective on career, life, and finance

Value my opinions as you wish. My background: Physics PhD as an immigrant into Canada. Now retired from a Fortune 10 corporation working worldwide. 1. Long term, your job satisfaction is more important than compensation. Short term, the opposite is true. I enjoyed technical challenges but for purity...
by msk
Tue Jan 30, 2018 11:25 pm
Forum: Investing - Theory, News & General
Topic: The ''Bulletproof'' Wait and See Portfolio - Anti-Inflation and Minimum Risk
Replies: 49
Views: 5247

Re: The ''Bulletproof'' Wait and See Portfolio - Anti-Inflation and Minimum Risk

I must be missing something... If I sell a Jan 2019 call @ 315 strike and buy a Jan 2019 put @ 260 strike, then the worst case outcome is for the market to drop to $260, at which point my put is still worthless but I now owe $55/share to whoever exercises the call, on top of the $25/share depreciat...
by msk
Tue Jan 30, 2018 10:58 am
Forum: Personal Consumer Issues
Topic: Is this new car the smarter option?
Replies: 24
Views: 1657

Re: Is this new car the smarter option?

Hmmnnn. I just sold my 10 year old Lexus LS460 to my sister-in-law for $13k. 95k miles. Cosmetically 100% perfect inside and 99% outside (scratches on one tail light). Lexus never seems to try escaping warranty claims. I was shopping for a new Lexus and mentioned to the sales manager that I hesitate...
by msk
Tue Jan 30, 2018 1:49 am
Forum: Investing - Theory, News & General
Topic: The ''Bulletproof'' Wait and See Portfolio - Anti-Inflation and Minimum Risk
Replies: 49
Views: 5247

Re: The ''Bulletproof'' Wait and See Portfolio - Anti-Inflation and Minimum Risk

I prefer a simple, transparent insurance policy. Put the entire investment into the SP500, e.g. buy SPY. Insure annually by buying one-year Puts, current prices: 0% downwards acceptable: cost is 5.2% 5% downwards acceptable: cost is 3.7% 10% downwards acceptable: cost is 2.7% You are going to be pa...
by msk
Mon Jan 29, 2018 9:07 am
Forum: Investing - Theory, News & General
Topic: The ''Bulletproof'' Wait and See Portfolio - Anti-Inflation and Minimum Risk
Replies: 49
Views: 5247

Re: The ''Bulletproof'' Wait and See Portfolio - Anti-Inflation and Minimum Risk

aj76er wrote:
Mon Jan 29, 2018 1:23 am
msk wrote:
Mon Jan 29, 2018 12:18 am
Insure annually by selling one-year Puts
Don't you mean buying puts?
Yes. Buying :greedy Edited...
by msk
Mon Jan 29, 2018 12:18 am
Forum: Investing - Theory, News & General
Topic: The ''Bulletproof'' Wait and See Portfolio - Anti-Inflation and Minimum Risk
Replies: 49
Views: 5247

Re: The ''Bulletproof'' Wait and See Portfolio - Anti-Inflation and Minimum Risk

I prefer a simple, transparent insurance policy. Put the entire investment into the SP500, e.g. buy SPY. Insure annually by buying one-year Puts, current prices: 0% downwards acceptable: cost is 5.2% 5% downwards acceptable: cost is 3.7% 10% downwards acceptable: cost is 2.7% You are going to be pai...
by msk
Sun Jan 28, 2018 11:52 pm
Forum: Investing - Help with Personal Investments
Topic: Thinking About Timing the Market
Replies: 75
Views: 5666

Re: Thinking About Timing the Market

We tend to focus on the "recent" in discussions of this sort. The best source for really long term data that I came across is "Capital in the 21st Century" by Thomas Piketty. His findings covering the past 300 years and all countries with significant recorded statistics: Largely passive investments ...
by msk
Fri Jan 26, 2018 8:09 am
Forum: Investing - Help with Personal Investments
Topic: Buying a home - Financial Benefits? HCOL
Replies: 75
Views: 3410

Re: Buying a home - Financial Benefits? HCOL

VHCOL areas have a HUGE number of people betting that house prices will go up and up forever. They are willing to rent out these homes at half or less rents that would justify them as simple investments. Basically they are betting on individual growth stocks that show little or negative net income. ...
by msk
Fri Jan 26, 2018 7:47 am
Forum: Investing - Help with Personal Investments
Topic: Thinking About Timing the Market
Replies: 75
Views: 5666

Re: Thinking About Timing the Market

is there a chart for the modern era say 1970-2018? I do not have a chart but I crunched these numbers myself from published tables. SP 500 and US Inflation, averaged from 1967 to 2017. I was trying to derive a spending (withdrawal) strategy for my heirs, before I discovered BHs, that will preserve ...
by msk
Thu Jan 25, 2018 11:05 pm
Forum: Personal Consumer Issues
Topic: Strategies to combat the urge to spend?
Replies: 68
Views: 3679

Re: Strategies to combat the urge to spend?

This worked for me. Now aged 73 with a NW in 8 figures (100% stocks), retired 18 years ago at 55, put 4 kids through private school and college, paid cash for my first luxury car at age 39 (Mercedes S-Class Coupe) and owned multiple luxury cars thereafter: 1. Save and invest 30% of after-tax income....
by msk
Wed Jan 24, 2018 3:10 am
Forum: Investing - Theory, News & General
Topic: Calling all stats and math gurus...monte carlo in excel or online program
Replies: 13
Views: 1077

Re: Calling all stats and math gurus...monte carlo in excel or online program

I don't see how anyone can guarantee a 3% minimal return in a new investment today, with such low interest rates currently. Perhaps that was guaranteed way back in the 1970s/1980s? All guaranteed stock investments that I am aware of start off by putting the principal in a bond, e.g an x-years bond b...
by msk
Wed Jan 24, 2018 1:33 am
Forum: Personal Finance (Not Investing)
Topic: Working in the real world
Replies: 118
Views: 8823

Re: Working in the real world

Possibly actionable: Your daughter who works in finance. Many business/accountancy graduates believe that they ought to make the same as Accountants. Not true! One of my daughters with a BCom from a top university worked for a Fortune 10 company for several years and was even evaluated by the CEO as...
by msk
Wed Jan 24, 2018 12:36 am
Forum: Investing - Theory, News & General
Topic: Bond Portfolio for High Net Worth Individuals - Different Rules?
Replies: 56
Views: 5705

Re: Bond Portfolio for High Net Worth Individuals - Different Rules?

I have heard of various approaches to how much one should have in bonds [...] But, what about for high net worth individuals? I only know a few high net worth individuals but all of them got there by being more risk-taking than the average Boglehead. I know a handful of self made VHNW individuals (...
by msk
Tue Jan 23, 2018 6:00 am
Forum: Investing - Theory, News & General
Topic: Bond Portfolio for High Net Worth Individuals - Different Rules?
Replies: 56
Views: 5705

Re: Bond Portfolio for High Net Worth Individuals - Different Rules?

If you can stomach a 50% drop in portfolio I see nil need for bonds. I am 73 and 100% stocks. RE got to be too much bother so I sold off 30 rental units. I agree that the markets worldwide are very frothy but I do not want to miss a minute of this exuberant ride up. Last year I decided that I will d...