Search found 269 matches

by msk
Sat Apr 29, 2017 1:55 am
Forum: Personal Finance (Not Investing)
Topic: Sell Condo or Rent it out
Replies: 12
Views: 973

Re: Sell Condo or Rent it out

The way I evaluate these things is by stretching the concept to absurdity. Given that it'll be 90 miles away is a huge negative, but there is always a rent that will make it attractive. E.g. >>1% per month. So, if I were able to raise the financing, would I buy the whole block, e.g. 50 condos in tha...
by msk
Sat Apr 29, 2017 1:31 am
Forum: Personal Finance (Not Investing)
Topic: Helping adult children
Replies: 78
Views: 6945

Re: Helping adult children

I think there is a significant difference between how you gift while alive (in dribs and drabs) and how you apportion inheritance. Apportioning inheritance is probably much more sensitive for future family sentiments because it's a one-off and in large chunks. It so happens that in my jurisdiction t...
by msk
Sat Apr 29, 2017 1:07 am
Forum: Investing - Help with Personal Investments
Topic: Retirement income for 50+ years?
Replies: 125
Views: 8927

Re: Retirement income for 50+ years?

For 50:50 I would just plonk 5.5 million $ in VT (Total World including Emerging Markets) and collect the 2.25% dividend p.a. Just a few months ago I did something similar, but since I am not US tax-resident I preferred to use 90% IWDA and 10% EIMI. Interesting finding: my brokerage would not let me...
by msk
Fri Apr 28, 2017 4:05 am
Forum: Personal Finance (Not Investing)
Topic: Setting up a holding company in the EU for investment? Asset protection?
Replies: 2
Views: 343

Re: Setting up a holding company in the EU for investment? Asset protection?

Establish tax residency in one of these countries by spending a few months there:
http://www.telegraph.co.uk/expat/money/ ... -pictures/
Many of these have seriously wealthy tax-residents and their local lawyers should be very conversant with your desires.
by msk
Fri Apr 28, 2017 2:30 am
Forum: Investing - Help with Personal Investments
Topic: Retirement income for 50+ years?
Replies: 125
Views: 8927

Re: Retirement income for 50+ years?

Aha! Waiting for a 20% drop means that you are willing to get in if SPY drops to around $190. Here's a strategy that pays much better than do-nothing: 1. Place $10 million in a brokerage account and buy one-year bonds. I don't keep track of bonds, but presumably you'll get, say 1.75% or $175k. When ...
by msk
Fri Apr 28, 2017 2:04 am
Forum: Personal Finance (Not Investing)
Topic: Helping adult children
Replies: 78
Views: 6945

Re: Helping adult children

I am surprised at how many people feel that reasonably financially comfortable adults should not be aided financially (presumably except if bad fortune befalls them). My own feeling is it all depends on the wealth gap between the parents and the adult offspring. Let's assume that the parents are in ...
by msk
Thu Apr 27, 2017 7:30 am
Forum: Personal Consumer Issues
Topic: Boglehead Ideas for College Graduation Gifts
Replies: 14
Views: 1019

Re: Boglehead Ideas for College Graduation Gifts

It really depends on who is the recipient. Family member? High scorer as a school prize? Some years back I had a discussion with a college principal who wished to designate the prize for their top college graduate in honor of my Dad. I said I am willing to pay around $1500 annually for the commemora...
by msk
Thu Apr 27, 2017 1:23 am
Forum: Personal Consumer Issues
Topic: Porsche Lease
Replies: 56
Views: 3832

Re: Porsche Lease

Leasing? IMHO when you go high-end pay cash, or you can't afford it. Having owned the top or near-top models available at the time for Porsche, Mercedes, BMW, Lexus, Jaguar I would say that Lexus are by far the most economic, Jaguar the most costly, with going from most economic to most costly among...
by msk
Wed Apr 26, 2017 4:33 am
Forum: Investing - Help with Personal Investments
Topic: Why is Real-Estate so Bad?
Replies: 113
Views: 8460

Re: Why is Real-Estate so Bad?

I have dabbled in both RE and stocks in a few countries over the past 40 years. My observations on RE: A property is made up of the land it sits on and the building(s). The land price appreciation is intimately linked to population growth and availability of new land for development. Think London UK...
by msk
Tue Apr 25, 2017 10:32 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement income for 50+ years?
Replies: 125
Views: 8927

Re: Retirement income for 50+ years?

I also have an 8-figure portfolio, but 100% in stocks. I also have a COLA pension that can meet all my needs. My active trading days are over and I am now shifting everything to Total World indexed ETFs. I suspect the OP may have a different risk perspective compared to somebody with a portfolio in ...
by msk
Tue Apr 25, 2017 4:48 am
Forum: Investing - Help with Personal Investments
Topic: Investing $1M
Replies: 57
Views: 5380

Re: Investing $1M

I believe in stocks and do not care much for the current very low interest bonds. Here's what I would do if you were my son: Open a brokerage account, send in the $1 million and activate options trading. Yes! Intent is to purchase a million $ of SPY (ETF for the SP500) and live off that long term. S...
by msk
Tue Apr 25, 2017 4:16 am
Forum: Personal Finance (Not Investing)
Topic: Helping adult children
Replies: 78
Views: 6945

Re: Helping adult children

I have 4 kids but two are still in college. I have paid for all their college educations, very generously compared to actual needs of a college student. But the eldest works, her husband works (a Vice President in a medium sized company) and they have 3 kids. Good jobs; but they always seem to have ...
by msk
Mon Apr 24, 2017 10:32 am
Forum: Investing - Help with Personal Investments
Topic: Why is Real-Estate so Bad?
Replies: 113
Views: 8460

Re: Why is Real-Estate so Bad?

A lot of the discussion above applies to averages. Over a period of 300 years RE returned, on average, in various countries, 4% real p.a. Trade and Industry (being more risky) returned one to two % more p.a. than RE. Stocks represent Trade and Industry in our time. But it is far, far easier to pick ...
by msk
Mon Apr 24, 2017 10:03 am
Forum: Investing - Help with Personal Investments
Topic: Why is Real-Estate so Bad?
Replies: 113
Views: 8460

Re: Why is Real-Estate so Bad?

RE is location, location, location. As everyone knows. But it's also timing, timing, timing. The fact that you can gear up your RE investment so enormously compared to ETFs, and still look "intelligent" is a great angle. Most people would consider gearing up your ETF even by a very modest ...
by msk
Mon Apr 24, 2017 12:36 am
Forum: Personal Finance (Not Investing)
Topic: Any regrets living a frugal life for high income/high networth individuals?
Replies: 170
Views: 18591

Re: Any regrets living a frugal life for high income/high networth individuals?

Of course all those who died young (and presumably regret having been overly frugal) are unable to post...
by msk
Sat Apr 22, 2017 2:12 am
Forum: Personal Consumer Issues
Topic: You can never go "home" - retirement
Replies: 85
Views: 12220

Re: You can never go "home" - retirement

Aah. Home is where you feel at home, surrounded by close friends and family. Many of us form our closest friends in childhood, followed by college (probably geographically far away), followed by grad school, followed by during career moves. Friendships are often weaker as we age, and we lose our pas...
by msk
Thu Apr 20, 2017 10:40 am
Forum: Personal Finance (Not Investing)
Topic: Did I make a good decision to retire July 2017 instead of July 2018?
Replies: 56
Views: 4839

Re: Did I make a good decision to retire July 2017 instead of July 2018?

You are getting an extra year of vacation time. Enjoy it.
by msk
Thu Apr 20, 2017 4:24 am
Forum: Personal Finance (Not Investing)
Topic: What kind of stuff would you never DIY, assuming you could?
Replies: 75
Views: 5802

Re: What kind of stuff would you never DIY, assuming you could?

remomnyc wrote:- $125k of my FI budget is to have a cleaning lady forever.

Love that! Come to think of it, it's not exorbitantly expensive @, say $500/month. All BHs ought to include that when working out how much they need for FI :sharebeer
by msk
Wed Apr 19, 2017 3:39 am
Forum: Personal Finance (Not Investing)
Topic: What kind of stuff would you never DIY, assuming you could?
Replies: 75
Views: 5802

Re: What kind of stuff would you never DIY, assuming you could?

Economic commonsense says that stuff done by pros is done more efficiently than by DIYs. Unfortunately taxes mess up simple economics and we all end up DIY when young, less so as we accumulate wealth. The more steeply progressive a country's income tax scheme is, the more DIY and less economic effic...
by msk
Wed Apr 19, 2017 1:57 am
Forum: Investing - Help with Personal Investments
Topic: Real estate dilemma -- sell it or fix and rent?
Replies: 9
Views: 1081

Re: Real estate dilemma -- sell it or fix and rent?

+10
Minimal fix-up then quick sell. Plenty of ETFs for your Ma's cash.
by msk
Tue Apr 18, 2017 11:26 am
Forum: Personal Consumer Issues
Topic: Is my electric bill high?
Replies: 60
Views: 5259

Re: Is my electric bill high?

I think the focus should be on the kWh/month so it would be easier to compare. 1500 kWh for a house that size in a fairly mild climate is IMHO excessive. Are there kids who leave air conditioners running excessively? Power hogs are anything to do with cooling or heating (cooking with electricity? he...
by msk
Mon Apr 17, 2017 9:52 am
Forum: Investing - Help with Personal Investments
Topic: How to invest my children's inheritance
Replies: 33
Views: 2770

Re: How to invest my children's inheritance

50 years on the trust? The oldest would be 94 and might need the money earlier if only for medical reasons. Loosen up a bit and trust your kids. Quite true! I plan to start annual distributions as soon as I have the documentation sorted out and I expect to stick to it as long as I am alive and have...
by msk
Sun Apr 16, 2017 6:58 am
Forum: Investing - Help with Personal Investments
Topic: How to invest my children's inheritance
Replies: 33
Views: 2770

Re: How to invest my children's inheritance

I am still trying to sort out the trust paperwork and tax angles, but I am narrowing down to a trust invested 100% in worldwide stocks (e.g. VT or IWDA+EIMI). Cash out 5% of portfolio once a year and distribute to my 4 kids, current ages 19 to 44. For the two kids still in college hold back their mo...
by msk
Sat Apr 15, 2017 2:35 am
Forum: Investing - Help with Personal Investments
Topic: Conservative assumption on real rate of return?
Replies: 12
Views: 1058

Re: Conservative assumption on real rate of return?

I do believe that we may be faced with lengthy spells of mediocre returns, hence just blindly inflating the $ amount that was the initial 4% withdrawal that might have happened decades ago is not realistic, and I doubt very much that any BH would actually follow it in practice. OK for theoretical st...
by msk
Sat Apr 15, 2017 2:20 am
Forum: Personal Finance (Not Investing)
Topic: million dollar condo?
Replies: 32
Views: 3366

Re: million dollar condo?

Indeed, just view it as a real estate investment where the tenant is yourself. If the rosy local condo picture you paint is real, I would not hesitate a minute... Managing rental properties when you own only one or two in the same city is no big deal. And when you have a hundred units you hire a ful...
by msk
Sat Apr 15, 2017 1:51 am
Forum: Investing - Help with Personal Investments
Topic: Conservative assumption on real rate of return?
Replies: 12
Views: 1058

Re: Conservative assumption on real rate of return?

We cannot know the future (e.g. a major 50% downturn in stocks that then lasts decades) but we do know the past. I checked the stats over 50 years, 1966 to 2016: SP500 compounded at an average of 6.6% p.a. Dividends paid averaged at 3.1% p.a. Inflation compounded at 4% p.a. Reinvesting dividends is ...
by msk
Wed Apr 12, 2017 7:27 am
Forum: Personal Consumer Issues
Topic: Prewiring house for tv and internet. Worth it?
Replies: 65
Views: 3931

Re: Prewiring house for tv and internet. Worth it?

I have designed and built several houses (for myself) in the past 40 years. Decided a long time ago that all this video/internet/music stuff is evolving too fast for built-in wiring. Hence my attitude has been to minimize hard wiring. E;g. in media rooms I put in duct work (1") for speakers all...
by msk
Wed Apr 12, 2017 7:06 am
Forum: Personal Finance (Not Investing)
Topic: Can we afford private school tuition
Replies: 42
Views: 3227

Re: Can we afford private school tuition

It's more than just "affording". Are you willing to curtail your lifestyle creep for decades in order to send your kids to private schools (presumably followed by high $ colleges)? Could be the difference between running two $100k Mercedes and a $50k Mercedes + a Camry, or whatever. We dec...
by msk
Wed Apr 12, 2017 6:56 am
Forum: Personal Finance (Not Investing)
Topic: Financing purchase of new home prior to selling old one
Replies: 7
Views: 574

Re: Financing purchase of new home prior to selling old one

Margin rates at Interactive Brokers are 2% reducing to 1% on large amounts. If you have an account there, just activate "Margin"...
by msk
Tue Apr 11, 2017 11:52 pm
Forum: Investing - Help with Personal Investments
Topic: Investing for College Student - Looking for Advice
Replies: 8
Views: 560

Re: Investing for College Student - Looking for Advice

I would go simply for VT (Vanguard Total World) and add to it over the coming years; and let it accumulate till retirement. When he is in his 40s he can fine tune to some AA including bonds. No desire for international? SPY (or the Vanguard equivalent) is good enough for me.
by msk
Tue Apr 11, 2017 10:50 am
Forum: Investing - Help with Personal Investments
Topic: Need Newbie Advice for Large Sum - US or Europe?
Replies: 17
Views: 1628

Re: Need Newbie Advice for Large Sum - US or Europe?

Monaco has no personal income tax...
by msk
Sat Apr 08, 2017 2:38 am
Forum: Investing - Help with Personal Investments
Topic: Best Investment For A College Student?
Replies: 8
Views: 597

Re: Best Investment For A College Student?

I'd suggest that rather than trying to save when you have very little income, it's better to get employed in the sector that appeals to you, so that you learn the ropes in a real world environment. Perhaps for a couple of years? A PhD is mostly irrelevant to an entrepreneur, though an MBA might be q...
by msk
Thu Apr 06, 2017 10:37 am
Forum: Personal Consumer Issues
Topic: How to Sell Gold Watch from Last Kaiser of Germany?
Replies: 11
Views: 1539

Re: How to Sell Gold Watch from Last Kaiser of Germany?

My father actually knew personally the diplomat who received the watch from the Kaiser (misspellings entirely mine, just typing from memory! Since my childhood I have been intrigued by that watch.). Dad bought it from the estate of the gent who received it when he passed away. I suspect that there i...
by msk
Thu Apr 06, 2017 12:17 am
Forum: Personal Consumer Issues
Topic: How to Sell Gold Watch from Last Kaiser of Germany?
Replies: 11
Views: 1539

How to Sell Gold Watch from Last Kaiser of Germany?

I happen to have inherited a solid gold pocket watch given as a gift to a foreign diplomat (from a small obscure country) in 1889 by Kaiser Wilhem of Germany, engraved with the royal crest, text stating the gifting and even a nice, 2" high bas-relief profile of the Kaiser himself. No clue as to...
by msk
Wed Apr 05, 2017 4:06 am
Forum: Personal Finance (Not Investing)
Topic: Help with college choice
Replies: 125
Views: 5380

Re: Help with college choice

The obvious: kids grow. Their interests change. That's what a BS is for, to find themselves. He needs to go to a pleasant environment that does not cost an arm and a leg. I have two kids in college right now. They are at a university where I enjoyed my grad studies, immensely. I sent them there to f...
by msk
Wed Apr 05, 2017 2:09 am
Forum: Investing - Help with Personal Investments
Topic: Need Newbie Advice for Large Sum - US or Europe?
Replies: 17
Views: 1628

Re: Need Newbie Advice for Large Sum - US or Europe?

Problems with being a permanent nomad probably start with opening a bank account. Obviously you already have one, perhaps in Canada, using a residence address of a relative or friend? While this may work fine with your current banking needs, for stock brokerage it will not. If you tell your prospect...
by msk
Sun Apr 02, 2017 8:38 am
Forum: Personal Consumer Issues
Topic: What career helped you become wealthy?
Replies: 75
Views: 8596

Re: What career helped you become wealthy?

OK, I'll nibble. Personally, at 70+, I have made it to 8 figures but still a long way from 9 figures. Surprisingly many of my childhood buddies seem to have done similarly. I also have a very small handful of friends from childhood who have made it to 9 figures and a couple even to 10 figures. What ...
by msk
Sat Apr 01, 2017 3:50 am
Forum: Personal Consumer Issues
Topic: quickest or best way to learn Spanish?
Replies: 39
Views: 2711

Re: quickest or best way to learn Spanish?

Scary! I did try to steer her to Barcelona, Spain, but she turned that down as too touristy :annoyed
by msk
Fri Mar 31, 2017 7:32 am
Forum: Personal Consumer Issues
Topic: August Vacation With Kids
Replies: 31
Views: 2329

Re: August Vacation With Kids

With young kids we found that self-catering accommodation + car was a must, next to a beach. August in a foreign country: West coast, Vancouver area; East coast, Nova Scotia (mostly very rural). Far away foreign location: Surfers Paradise, Australia. Yes, they actually have a city by that name :P Au...
by msk
Thu Mar 30, 2017 1:45 am
Forum: Personal Consumer Issues
Topic: quickest or best way to learn Spanish?
Replies: 39
Views: 2711

Re: quickest or best way to learn Spanish?

My 19 year old daughter has booked herself into a 6 week program at Santa Cruz La Laguna in Guatemala this summer so that she can spend a semester on a field research course in Panama in 2018. Santa Cruz is apparently a 4 hour bus ride from Guatemala Airport. I am impressed by her adventurousness. A...
by msk
Sat Mar 25, 2017 2:09 am
Forum: Investing - Help with Personal Investments
Topic: Need Newbie Advice for Large Sum - US or Europe?
Replies: 17
Views: 1628

Re: Need Newbie Advice for Large Sum - US or Europe?

The currency you invest in is irrelevant as long as that currency continues to be exchangeable in future. It does not matter what the exchange rate does in the meantime. What does matter is the investments held within the ETF you are interested in. E.g. you can purchase an SP500 ETF in GBP, EUR, USD...
by msk
Fri Mar 24, 2017 10:52 pm
Forum: Personal Consumer Issues
Topic: The Sweet Spot for Yearly Car Costs
Replies: 54
Views: 3883

Re: The Sweet Spot for Yearly Car Costs

I think 3 year leases are not a sweet spot for modern cars. Too short a lease period. Toyotas remain extremely reliable even after 6 years. Own experience: My employer went out for tender to lease about six hundred vehicles for a period of 3 years. High annual mileage on rough roads, mostly without ...
by msk
Fri Mar 24, 2017 10:14 pm
Forum: Personal Finance (Not Investing)
Topic: Divesting to heirs. When and how quickly.
Replies: 45
Views: 4362

Re: Divesting to heirs. When and how quickly.

In principle I am not giving to my alma mater, but to the students who receive the bursaries. I had to be self supporting from the age of 19 and there is a limit to how much a kid can earn from part time work and summer jobs. I will be eternally grateful to the many unknown donors who provided me su...
by msk
Fri Mar 24, 2017 10:50 am
Forum: Personal Finance (Not Investing)
Topic: Divesting to heirs. When and how quickly.
Replies: 45
Views: 4362

Re: Divesting to heirs. When and how quickly.

Personally I prefer "giving" while I am alive and the investments are still "mine". Once I die I own nothing and it costs me nothing to give it away. Not quite the same as when you are alive and may still hanker for a yacht, or a beach house, or a Rolls Royce, or whatever turns o...
by msk
Fri Mar 24, 2017 5:16 am
Forum: Personal Finance (Not Investing)
Topic: Divesting to heirs. When and how quickly.
Replies: 45
Views: 4362

Re: Divesting to heirs. When and how quickly.

I'd like to point out that if I drop dead today (I am 72 with recent, complex cardiac surgery), all the kids will get their inheritances instantly and anyone tempted to purchase a Lamborgini will go right out and do so. I do not see waiting for 5 to 10 years doing nothing waiting for the younger kid...
by msk
Fri Mar 24, 2017 4:30 am
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 186
Views: 24686

Re: How much international stock? A suggestion.

I think we have to recall why indexing is so successful. It reacts to changing realities and market perceptions/wisdom/emotions every 3 months, or whatever is the relevant re-balancing frequency for that index. How many BHs would seriously put a significant amount of $ into the new-tech companies th...
by msk
Fri Mar 24, 2017 4:03 am
Forum: Personal Consumer Issues
Topic: gratuitous homeownership items
Replies: 218
Views: 18584

Re: gratuitous homeownership items

Just wondering with the people disappointed with granite counters. Sure it's granite and not marble? Marble is calcium carbonate and is very sensitive to anything acidic. Orange juice will definitely mark it permanently if left for more than a few minutes. Marble also tends to be more porous than gr...
by msk
Thu Mar 23, 2017 3:22 am
Forum: Investing - Theory, News & General
Topic: What % of your income have you converted to wealth?
Replies: 105
Views: 14287

Re: What % of your income have you converted to wealth?

Perhaps this paper exercise may help individuals peg how well they are doing. I assumed that the next 50 years will behave, on average, similarly to the last 50 and you invest 100% in the SP500. 50 year history from 1966 to 2016: SP500 compounded at 6.63% p.a., paid a dividend of 3.1% and inflation ...
by msk
Wed Mar 22, 2017 11:41 pm
Forum: Investing - Theory, News & General
Topic: What % of your income have you converted to wealth?
Replies: 105
Views: 14287

Re: What % of your income have you converted to wealth?

There are of course many ways to look at this, but if we want to compare earned-income-through-personal-labor-and-toil to accumulated wealth then somebody who had a BH mentality when still young should show a huge expansion. My accumulated wealth is roughly 750% of my total lifetime earned income. S...
by msk
Wed Mar 22, 2017 11:05 pm
Forum: Personal Consumer Issues
Topic: What is ideal master bedroom size?
Replies: 30
Views: 2620

Re: What is ideal master bedroom size?

I have designed most of the houses we lived in over the years, a hobby that turned out very profitable because amazingly few people are courageous enough to build, rather than buy. I.e. you get to make a significant profit each time you move, the developer profit margin. Something that comes up when...

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