Search found 302 matches

by msk
Sun Jun 25, 2017 5:08 am
Forum: Investing - Theory, News & General
Topic: 5% of portfolio balance a better SWR than 3-4% inflation-adjusted?
Replies: 13
Views: 1087

Re: 5% of portfolio balance a better SWR than 3-4% inflation-adjusted?

An interesting observation using the above referenced Monte Carlo simulation. To have a more or less steady, real-terms, spend with 100% in US Stocks you can withdraw annually 5% p.a. using large-cap stocks or 8% p.a. using micro-caps. After 50 years with a $1 million initial portfolio the 25, media...
by msk
Sun Jun 25, 2017 4:14 am
Forum: Investing - Theory, News & General
Topic: 5% of portfolio balance a better SWR than 3-4% inflation-adjusted?
Replies: 13
Views: 1087

Re: 5% of portfolio balance a better SWR than 3-4% inflation-adjusted?

To cut out the distractions I decided to calculate my target withdrawal rates from first principles. The salient data I started with are as follows, from mid 1966 to mid 2016 (50 years, includes major wars but not a World War!): SP500 increased by 6.63% p.a. compounded, Average Dividend Yield 3.1% p...
by msk
Sun Jun 25, 2017 3:33 am
Forum: Personal Finance (Not Investing)
Topic: I need a strategy to address debt and savings
Replies: 15
Views: 976

Re: I need a strategy to address debt and savings

Depending on how close you are to your girlfriend, perhaps consider showing this thread to her, otherwise she may find it strange as to how come you have suddenly become so stingy with entertainment. At your age, your best entertainment is to enjoy each other's company. Why on earth do you need a gy...
by msk
Sun Jun 25, 2017 3:11 am
Forum: Investing - Help with Personal Investments
Topic: Impact of rental properties on AA
Replies: 2
Views: 179

Re: Impact of rental properties on AA

I know people who retire more or less exclusively on RE rental income, and many more on combinations with pensions. Nothing wrong with that as long as you do not get fed up with the RE hassles. I got fed up with the hassles when I hit age 65+ (retired at 55). After looking after 30 units for some 30...
by msk
Wed Jun 21, 2017 5:41 am
Forum: Personal Consumer Issues
Topic: What is your car's average cost ownership?
Replies: 70
Views: 4341

Re: What is your car's average cost ownership?

I think for these discussions it's important that all costs are included. And then compare yours to Consumer Reports. Anyway here is an absurd example of a fun car. a LaFerrari (it's even a hybrid for the eco crowd!). You could have bought one in 2014 for $1.5 million (provided Ferrari thought you w...
by msk
Tue Jun 20, 2017 5:01 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio advise (not residing in the U.S)
Replies: 11
Views: 456

Re: Portfolio advise (not residing in the U.S)

The risk is that the country may put a freeze on forex...? Tax and residence-wise I am in a similar position. After 30+ years of dabbling in ETFs, individual stocks, Options, Gold, Real Estate, I have now "retired" to owning IWDA (iShares World Developed All), 90%, and EIMI (10%) as my for...
by msk
Sun Jun 18, 2017 6:31 am
Forum: Investing - Help with Personal Investments
Topic: Thinking of changing my international allocation
Replies: 19
Views: 1427

Re: Thinking of changing my international allocation

Just checked Vanguard Total World Stock, VT. It's 56% N.America, very close to what the OP has. Why not go whole hog with VT and quit worrying, forever. The US+Canada go awry, your 56% goes down, automatically. The US+Canada do well, your 56% creeps up. Simple momentum investing requiring nil tinker...
by msk
Sat Jun 17, 2017 8:40 am
Forum: Personal Finance (Not Investing)
Topic: Siblings in disagreement over mom's house.
Replies: 241
Views: 16027

Re: Siblings in disagreement over mom's house.

Logic and reason have nothing to do with these situations. My situation. I looked after my Dad's inheritance for all my siblings and mother for around 30 years. Rental property, high net income, reinvesting into stocks endlessly. Even built more, but one day the time came when I got tired. Sold the ...
by msk
Thu Jun 15, 2017 3:36 am
Forum: Personal Finance (Not Investing)
Topic: Regret early retirement/downsizing
Replies: 226
Views: 34539

Re: Regret early retirement/downsizing

Genius is limited, but stupidity is boundless. We upsized after retirement, from circa 3500 sq ft to 14,000. Then two years later all the kids had left home to go off to college. Now there is only DW and myself to share our 5 living/entertainment areas, 2 offices, etc. Ah, we also have staff quarter...
by msk
Tue Jun 13, 2017 4:24 am
Forum: Investing - Help with Personal Investments
Topic: Tax implications of investing through London Stock Exchange for non-resident investors
Replies: 9
Views: 700

Re: Tax implications of investing through London Stock Exchange for non-resident investors

To insulate myself further from any smell of inheritance tax, my IB account is jointly owned with my wife (with survivor rights). Her residency status is similar to mine.
by msk
Tue Jun 13, 2017 4:20 am
Forum: Investing - Help with Personal Investments
Topic: Tax implications of investing through London Stock Exchange for non-resident investors
Replies: 9
Views: 700

Re: Tax implications of investing through London Stock Exchange for non-resident investors

IWDA is accumulative and does not pay dividends, hence any dividend tax that is paid by iShares within each sub-holding of shares in numerous jurisdictions worldwide is never available to you anyway. For you, No dividends, No income tax. I have recently sold a large chunk of IWDA with a profit and s...
by msk
Thu Jun 08, 2017 5:08 am
Forum: Investing - Theory, News & General
Topic: 100% Stock Portfolio?
Replies: 138
Views: 6685

Re: 100% Stock Portfolio?

The very low rates charged by IB on margin loans are real. By accident while making large purchases of ETFs I triggered a margin loan of $400k. Panicking, I checked the interest rate. Seeing that it was so low I decided to let it ride and set up a limit sell order to bag me a $10k profit on the surp...
by msk
Tue Jun 06, 2017 5:34 am
Forum: Personal Finance (Not Investing)
Topic: Windfall, how much property can I afford
Replies: 3
Views: 604

Re: Windfall, how much property can I afford

My attitude to house/cars throughout my life has been very strict. As quickly as possible, say, by the time you are in your mid career, pay for every necessity and luxury item in cash. If I cannot pay cash then I cannot afford it. I have no idea where you are career or life wise, but your windfall I...
by msk
Mon Jun 05, 2017 1:55 pm
Forum: Personal Consumer Issues
Topic: Flying first class, business, versus economy.
Replies: 105
Views: 6781

Re: Flying first class, business, versus economy.

I have recently upgraded to Business Class. Economy never bothered me much since invariably I spent most of the time sleeping. But this forum encouraged me to upgrade, in an earlier thread. Observations regarding my 2 to 3 trips half way around the world each year? I still hate the wait at airports ...
by msk
Fri Jun 02, 2017 4:05 am
Forum: Personal Finance (Not Investing)
Topic: Job offer without an in person interview
Replies: 41
Views: 3440

Re: Job offer without an in person interview

I once hired a senior engineer without any interview at all! Neither F to F nor by phone. I was with a Fortune 10 multi-national. The candidate was in Australia, but he happened to include a reference in his CV somebody I had shared an office previously with in the UK. The candidate had no way of be...
by msk
Tue May 30, 2017 4:55 am
Forum: Personal Consumer Issues
Topic: Buying parents home--how to navigate
Replies: 12
Views: 1459

Re: Buying parents home--how to navigate

I think it's a great idea. To be fair to their other kids, I would buy their current property outright at a fair market price. Build the new property at entirely your cost and rent out the apartment to them at a fair market rent. They ought to have enough cash available from their sale to you of the...
by msk
Tue May 30, 2017 4:37 am
Forum: Investing - Help with Personal Investments
Topic: How to buy brk.a? [Berkshire Hathaway Inc. Class A]
Replies: 24
Views: 3009

Re: How to buy brk.a? [Berkshire Hathaway Inc. Class A]

Sorry, but I simply do not see an advantage to owning BRK.A rather than BRK.B. As a long term (decades) owner of BRK I recall rather vaguely that there used to be something about giving to charity (you could choose a charity that BRK would donate to) but even that is no longer there. Most recently b...
by msk
Sun May 28, 2017 4:04 am
Forum: Personal Finance (Not Investing)
Topic: When does Saving become missing out on life?
Replies: 74
Views: 8397

Re: When does Saving become missing out on life?

Save 30% of job income, spend the rest. I did that since my 30s and have no regrets. Definition of "savings" for me included building equity in my home (payment of principal on the mortgage but not interest) and excluded all consumables, e.g. cars. What happened to me: By the time I was in...
by msk
Tue May 23, 2017 12:24 pm
Forum: Investing - Help with Personal Investments
Topic: To me this is the most significant investment lesson ever
Replies: 16
Views: 2942

Re: To me this is the most significant investment lesson ever

After dabbling in RE and stocks for decades, I have come to the conclusion that I do not get nervous when a market tanks, and since businesses have to borrow to survive, businesses will always do better long term than the bonds they borrow with. Otherwise the businesses will fail. The entire world ...
by msk
Tue May 23, 2017 11:42 am
Forum: Investing - Help with Personal Investments
Topic: To me this is the most significant investment lesson ever
Replies: 16
Views: 2942

Re: To me this is the most significant investment lesson ever

After dabbling in RE and stocks for decades, I have come to the conclusion that I do not get nervous when a market tanks, and since businesses have to borrow to survive, businesses will always do better long term than the bonds they borrow with. Otherwise the businesses will fail. The entire world i...
by msk
Tue May 23, 2017 11:20 am
Forum: Investing - Help with Personal Investments
Topic: More assistance & help with 73 Father In Law - planning
Replies: 11
Views: 932

Re: More assistance & help with 73 Father In Law - planning

Some people simply cannot control their expenses. Try to convince him to stick to a monthly budget and close out all credit cards except one. Then arrange for him to get monthly cash equal to the agreed sustainable budget. And hope. At age 73 I find it mad to get a car on lease. There is nothing you...
by msk
Mon May 22, 2017 8:46 am
Forum: Personal Consumer Issues
Topic: Vehicle recommendation for large family
Replies: 32
Views: 1859

Re: Vehicle recommendation for large family

Got a new Ford Expedition a year back. With 7 seated, one can still have a rear seat folded over and thus allow more luggage. With 8 adults seated, there is not enough luggage space even for 4. With the turbo 6 engine it does seem to be more economical than the previous models. This is my 3rd Expedi...
by msk
Sun May 21, 2017 6:57 pm
Forum: Investing - Theory, News & General
Topic: Home Country Bias...makes sense?
Replies: 235
Views: 9181

Re: Home Country Bias...makes sense?

Am I confused as to the future behavior of simply weighting according to the index (FTSE or MSCI World or whatever)? Let us assume that the USA outperforms the rest of the world massively in the next several years. Will its weight in the index also not increase from the current 55% upwards? Converse...
by msk
Sun May 21, 2017 6:45 pm
Forum: Personal Finance (Not Investing)
Topic: Medical Insurance for visiting the US
Replies: 5
Views: 680

Re: Medical Insurance for visiting the US

I do not recognize a major problem. Just let her buy travel insurance in her home country. Normally there is no problem for those under 70 and for up to 90 days holiday. Such insurance never seems to cover pre-existing conditions and you will probably have to negotiate to get cover for 4 months.
by msk
Thu May 18, 2017 1:27 pm
Forum: Personal Finance (Not Investing)
Topic: Question for you high net worth individuals... [real estate investments]
Replies: 82
Views: 10462

Re: Question for you high net worth individuals...

RE is simply like another stock pick. Made 7 figures in RE by being at the right, booming location short of housing, and then made 7 figures when I sold and put most of the proceeds into one stock. Luck counts at least as much as judgement in both venues. RE is more appropriate for those youngsters ...
by msk
Tue May 16, 2017 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: Should I transfer my investment in real estate to stocks??
Replies: 19
Views: 1242

Re: Should I transfer my investment in real estate to stocks??

I'd keep the hotel investment seeing that a building, properly maintained at a non-dying location, should at least keep its resale value up with inflation. Hence the 6% is gravy.
by msk
Tue May 16, 2017 2:35 pm
Forum: Personal Finance (Not Investing)
Topic: Regret early retirement/downsizing
Replies: 226
Views: 34539

Re: Regret early retirement/downsizing

Retired 17 years ago at age 55 with 4000 subordinates. Only got bored in the past two years because I no longer have the stamina for staying up all night with my latest hobby, astrophotography. My other hobby while working was to design and build houses, single family and apartment buildings. Built ...
by msk
Tue May 16, 2017 9:28 am
Forum: Investing - Theory, News & General
Topic: What Will Burst the Next Bubble?
Replies: 66
Views: 6614

Re: What Will Burst the Next Bubble?

For the very nervous, just buy one year Puts on SPY and renew every year. They cost around 5% but even if SP500 goes sideways you still collect the dividends, hence the cost of the Puts is 3 to 4% p.a. And if the SP500 keeps going up into the stratosphere, well you are sitting pretty and cosy. If th...
by msk
Thu May 11, 2017 12:43 pm
Forum: Personal Finance (Not Investing)
Topic: General question of balance and compromise
Replies: 26
Views: 1933

Re: General question of balance and compromise

Since my early 30s I decided to save 30% of my net income. This yielded a nice (appropriate?) standard of living, and by the time I got to my 50s I was actually saving much more than 30% because those investments paid off and keep paying off. My wants were mostly satisfied, e.g. a Mercedes S Class b...
by msk
Thu May 04, 2017 2:11 am
Forum: Personal Finance (Not Investing)
Topic: Buying a luxury car (how dumb would it be to do this?)
Replies: 216
Views: 18352

Re: Buying a luxury car (how dumb would it be to do this?)

You can afford any car that you are ready and willing to pay cash for. The kids these days have a new term, YOLO, you only live once. Very apt. Apart from my very first car in my 20s I have paid cash for all my Jaguar, Mercedes, BMW, Porsche, Lexus (ranked in my experience with cost of ownership of ...
by msk
Thu May 04, 2017 1:51 am
Forum: Investing - Theory, News & General
Topic: A Boglehead Guide to Buying Individual Stocks
Replies: 85
Views: 6905

Re: A Boglehead Guide to Buying Individual Stocks

After I spent decades trying to stock pick after reading many of the books mentioned above, my conclusions are as follows: 1. Most of those books are way out of date. Major issue with the US market is that P/E ratios are now mostly at an insane level (SP500 at 23?!), not like in the days of Graham p...
by msk
Wed May 03, 2017 2:49 am
Forum: Personal Finance (Not Investing)
Topic: How quick is too quick for a job offer?
Replies: 29
Views: 3393

Re: How quick is too quick for a job offer?

Multi-round interviews are only relevant if there are a lot of candidates. For some positions a company may have to focus on only one or two candidates who look plausibly suitable. It's unfortunate but the Fortune 10 company I worked for had these lengthy procedures, and security clearances could st...
by msk
Sun Apr 30, 2017 9:58 pm
Forum: Investing - Help with Personal Investments
Topic: Grandparents helping with College tuition
Replies: 27
Views: 2065

Re: Grandparents helping with College tuition

Sigh. I am a bit surprised at the comments regarding the possibility of diminished financial aid. Financial aid is always in short supply, and frankly if one's offspring are lucky enough (perhaps through parents' or grandparents' good fortune and generosity) to not need financial aid desperately the...
by msk
Sat Apr 29, 2017 1:55 am
Forum: Personal Finance (Not Investing)
Topic: Sell Condo or Rent it out
Replies: 16
Views: 1412

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: 81
Views: 8426

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: 167
Views: 14973

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: 408

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: 167
Views: 14973

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: 81
Views: 8426

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: 1221

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: 4319

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: 9404

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: 167
Views: 14973

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: 6627

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: 81
Views: 8426

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: 9404

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: 9404

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: 20434

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: 12779

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: 5152

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.

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