Search found 945 matches

by wolf359
Mon May 22, 2017 6:38 pm
Forum: Investing - Help with Personal Investments
Topic: Do you keep extra money available for investing
Replies: 21
Views: 1195

Re: Do you keep extra money available for investing

Well, I have a spending fund that we use to save up for vacations or a replacement car. If the market tanked significantly, we'd consider putting off our spending goals and invest. This requires my DW to agree. If our jobs also got shaky, the money would stay as cash if we thought it might be needed...
by wolf359
Mon May 22, 2017 11:39 am
Forum: Investing - Theory, News & General
Topic: Who's into Bitcoin, Altcoins, ICO etc?
Replies: 49
Views: 2942

Re: Who's into Bitcoin, Altcoins, ICO etc?

I just took this screenshot; here's the market right now, hitting an all time high as I post. I get the concerns, and it's correct that Bogleheads are the ones voicing them. But saying "tulips" and walking away is doing an intellectual disservice to something that could have a profound im...
by wolf359
Fri May 19, 2017 8:51 pm
Forum: Investing - Help with Personal Investments
Topic: I'm having a freak-out moment (portfolio question)
Replies: 24
Views: 2318

Re: I'm having a freak-out moment (portfolio question)

The people who feel compelled to save a million dollars or more also have no pension. Your pension alone is worth what it would cost to buy an immediate annuity at the appropriate income level. (You'll have to price that one yourself, since you don't provide sufficient information. Try a site like h...
by wolf359
Fri May 19, 2017 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: Delay SS, but claim if market plunges
Replies: 49
Views: 3916

Re: Delay SS, but claim if market plunges

This strategy allows me to use SS as an insurance against the bad sequence of returns issue. This was my exact Plan B plan when I retired as well. I still don't see anything wrong with it. I think of the entire concept of delaying Social Security in order to get the larger benefit as the insurance ...
by wolf359
Fri May 19, 2017 10:38 am
Forum: Investing - Help with Personal Investments
Topic: Convince me to get back into stocks!
Replies: 83
Views: 5428

Re: Convince me to get back into stocks!

If you want to get in and are still nervous, try one of the following strategies: 1) Dollar cost average in. The math doesn't work, but it's more comforting psychologically if the market plummets right after you invest. Just divide your stash into 3 equal parts, and invest each part once a month. In...
by wolf359
Fri May 19, 2017 10:30 am
Forum: Personal Finance (Not Investing)
Topic: Delay SS, but claim if market plunges
Replies: 49
Views: 3916

Re: Delay SS, but claim if market plunges

This strategy allows me to use SS as an insurance against the bad sequence of returns issue. This was my exact Plan B plan when I retired as well. I still don't see anything wrong with it. I think of the entire concept of delaying Social Security in order to get the larger benefit as the insurance ...
by wolf359
Fri May 19, 2017 9:35 am
Forum: Personal Finance (Not Investing)
Topic: Delay SS, but claim if market plunges
Replies: 49
Views: 3916

Re: Delay SS, but claim if market plunges

Can't you "pay back" your social security and reset your clock? My father did then when he went back to work, I honestly don't know if it's still a possibility. Also, you could always suspend and start collecting credits again, so the impact would be somewhat muted in this case. On these ...
by wolf359
Thu May 18, 2017 6:03 pm
Forum: Investing - Theory, News & General
Topic: The Case for Dividend Stocks in Retirement (article)
Replies: 79
Views: 8096

Re: The Case for Dividend Stocks in Retirement (article)

I totally get the mathematical point that the distinction between spending dividends and selling shares is an artificial one. But what does the behavioral psychology research say about it? To me it seems easier to stick to a "spend the dividends" plan than to stick to a "sell as much...
by wolf359
Thu May 18, 2017 2:40 pm
Forum: Personal Finance (Not Investing)
Topic: Question for you high net worth individuals...
Replies: 72
Views: 7855

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

Do you realize that you're asking this question on a board that's pretty much dedicated to index funds, or at least low cost investing? My guess is that you'll get a lot of people responding if you asked this question on a real estate forum like Bigger Pockets. It might also be interesting to ask th...
by wolf359
Thu May 18, 2017 11:26 am
Forum: Investing - Theory, News & General
Topic: The Case for Dividend Stocks in Retirement (article)
Replies: 79
Views: 8096

Re: The Case for Dividend Stocks in Retirement (article)

If the cow is growing at 2lbs/yr and your eating 1 lb/yr, how many years will it take to consume the cow? "The math is such that a person living from dividend stocks ends up in the same place as a person selling shares, provided that the total returns of the two portfolios are exactly the same...
by wolf359
Thu May 18, 2017 11:19 am
Forum: Investing - Help with Personal Investments
Topic: Forced Retirement
Replies: 28
Views: 2687

Re: Forced Retirement

I'm actually trying to figure out where the income stream of $110,000 comes from. Is this before or after taxes? that seems like a lot, or at least a "desired" stream, not "necessary" stream. I'd like that in retirement, too, but you really need something north of $1.5M to suppo...
by wolf359
Thu May 18, 2017 10:56 am
Forum: Personal Finance (Not Investing)
Topic: 401k excess contribution/highly compensated employee
Replies: 17
Views: 941

Re: 401k excess contribution/highly compensated employee

even though it only feels like it's punishing the HCE's. It is. The intent is to encourage the company offer a less crappy plan so that more non-HCEs will participate. Unfortunately, many companies seem to be unconcerned with being told their plan is crappy. The HCEs usually include management and/...
by wolf359
Thu May 18, 2017 10:45 am
Forum: Investing - Help with Personal Investments
Topic: 100% VTSAX need advice
Replies: 57
Views: 5257

Re: 100% VTSAX need advice

When you say 100% VTSAX, there are two elements to that. 100% stock? All VTSAX? If you're a Dividend Growth investor, were you following the traditional path and buying those individual stocks in taxable accounts? If so, you may want to rethink before you change strategies. There's a tax cost to sel...
by wolf359
Thu May 18, 2017 8:54 am
Forum: Investing - Theory, News & General
Topic: Best argument you've heard against passive/for active?
Replies: 49
Views: 3883

Re: Best argument you've heard against passive/for active?

The best argument I've heard is: If you're going to invest in an index fund, you're going to get market returns. The only chance you have of beating the market is to invest in an active fund. A variation: If you invest in the market averages, you get average returns. Why are you settling for average...
by wolf359
Thu May 18, 2017 7:42 am
Forum: Investing - Help with Personal Investments
Topic: Article: "Our emergency fund is exactly $0.00"
Replies: 73
Views: 7182

Re: Article: "Our emergency fund is exactly $0.00"

The principle behind an emergency fund is that you have it so that if an emergency comes up, you don't have to go into debt or interrupt your investing. In other words, the emergency doesn't throw your financial life off track. The author of the article is financially independent, and has a high eno...
by wolf359
Wed May 17, 2017 4:28 pm
Forum: Personal Finance (Not Investing)
Topic: Delay SS, but claim if market plunges
Replies: 49
Views: 3916

Re: Delay SS, but claim if market plunges

I am planning on delaying SS to 70 for longevity insurance for myself or my spouse. This means that I will be depleting my portfolio faster initially. Since the biggest threat to a portfolio is a bad sequence of returns early on in retirement, my delaying SS to 70 would exacerbate such a bad sequen...
by wolf359
Wed May 17, 2017 12:53 pm
Forum: Investing - Help with Personal Investments
Topic: What if I have enough money?
Replies: 22
Views: 4148

Re: What if I have enough money?

What are your expenses? Do you have any retirement accounts, or is everything in taxable? Your investments are currently invested like someone who values cash flow. Your comments sound like you think retiring without having the cash flow makes you nervous. Your move towards collecting social securit...
by wolf359
Mon May 15, 2017 8:26 pm
Forum: Personal Finance (Not Investing)
Topic: Life Insurance: How Early Is Too Early?
Replies: 14
Views: 1090

Re: Life Insurance: How Early Is Too Early?

Car insurance rates are really low right now. I want to buy car insurance, but I don't own a car right now. In fact, I'm not sure when I'll own a car because I'm not even planning on buying a car in the near future. ... But maybe I will. This, of course, is ludicrous. Why does it make more sense whe...
by wolf359
Mon May 15, 2017 8:17 pm
Forum: Investing - Theory, News & General
Topic: Obtaining 2 Roth IRAs
Replies: 12
Views: 834

Re: Obtaining 2 Roth IRAs

Well, sure, it could work. If you stay within the rules for her having earned income, and she's not contributing to her IRA but is allowed to. If you gift her the money and she puts it into a Roth IRA and doesn't exceed her limits, this should work. An easier way to go about this is to get a job wit...
by wolf359
Mon May 15, 2017 7:16 pm
Forum: Personal Finance (Not Investing)
Topic: Regret early retirement/downsizing
Replies: 82
Views: 11825

Re: Regret early retirement/downsizing

This is my beef with the word "retired" as used by, say, Mr. Money Mustache. I prefer "financially independent". kathyauburn could of course have done writing, music, publishing, and countless other things as paid endeavors at 24 as many artists do. If she was financially indepe...
by wolf359
Mon May 15, 2017 6:54 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard "Declining Balance" automatic withdrawals
Replies: 6
Views: 2125

Re: Vanguard "Declining Balance" automatic withdrawals

If this interests you, you should also check out the Vanguard Managed Payout fund. It was established in 2008, and is designed to give you a systematic way to withdraw from a retirement portfolio (roughly following the 4% rule).
by wolf359
Mon May 15, 2017 6:43 pm
Forum: Personal Finance (Not Investing)
Topic: Was there a $$$ number after which things got easier?
Replies: 72
Views: 9197

Re: Was there a $$$ number after which things got easier?

Working does not mean you are contributing to society, it just means you are getting up doing someone else's bidding. Even the self employed are doing work for a payer's behalf. It also does depend what kind of work that you do. If you are a frivolous litigation lawyer are you really contributing t...
by wolf359
Mon May 15, 2017 2:39 pm
Forum: Investing - Help with Personal Investments
Topic: How many firms do you use?
Replies: 39
Views: 2562

Re: How many firms do you use?

Who is the life insurance for? Your spouse? Why whole life over term? I was going to ask the same thing. Life insurance is so that if you die, your kids or spouse can replace your income. But you don't have kids, and don't even plan to have them. And you picked whole life, so that you have lower am...
by wolf359
Mon May 15, 2017 11:58 am
Forum: Personal Finance (Not Investing)
Topic: Was there a $$$ number after which things got easier?
Replies: 72
Views: 9197

Re: Was there a $$$ number after which things got easier?

I don't really understand this question. When what gets easier? What do you mean by "things?" The savings process? Living life and staying motivated to keep saving? The rapid build-up of assets to cross the finish line? For me, it was very easy to stay motivated in the beginning. If you se...
by wolf359
Mon May 15, 2017 6:12 am
Forum: Personal Finance (Not Investing)
Topic: Funny Letter [Canceling Escrow Account]
Replies: 34
Views: 3916

Re: Funny Letter [Canceling Escrow Account]

One is marketing. The other is the minimum information points required by law.

Vivian: The stores are not nice to people — I don't like it.
Edward: Stores are never nice to people. They're nice to credit cards.

- Pretty Woman
by wolf359
Fri May 12, 2017 9:10 pm
Forum: Investing - Help with Personal Investments
Topic: Do I need small caps in my portfolio?
Replies: 6
Views: 877

Re: Do I need small caps in my portfolio?

Run a comparison between Total Stock Market and S&P 500. Both track each other so closely, that you're really okay with not having the extended market. There is a little boost over very long time periods, but not enough for you to put too much effort into it. Midcaps are fine. Focusing on expens...
by wolf359
Fri May 12, 2017 9:04 pm
Forum: Personal Finance (Not Investing)
Topic: Most Common Financial Mistakes
Replies: 108
Views: 13565

Re: Most Common Financial Mistakes

Ignoring that SEC warning: "IMPORTANT DISCLOSURE INFORMATION Past performance may not be indicative of future results. " "The mutual funds I buy OUTPERFORM the S&P 500, and they're really not that hard to find. A lot of mutual funds don't outperform the S&P 500, so if you're g...
by wolf359
Fri May 12, 2017 1:15 pm
Forum: Investing - Theory, News & General
Topic: What are the benefits of turning-off dividend reinvestment (and capital gains too)?
Replies: 15
Views: 1851

Re: What are the benefits of turning-off dividend reinvestment (and capital gains too)?

...When buying stocks in taxable, assume that you're going to hold them forever. Pick your holdings carefully. You do get a chance to readjust them from time to time when a bear market comes, but other than that, I don't sell in taxable. Forever is a long time. The recommended retirement strategy f...
by wolf359
Fri May 12, 2017 10:24 am
Forum: Investing - Theory, News & General
Topic: What are the benefits of turning-off dividend reinvestment (and capital gains too)?
Replies: 15
Views: 1851

Re: What are the benefits of turning-off dividend reinvestment (and capital gains too)?

Say that an investor has been investing in TSM for a couple years but then decides that S&P 500 Index truly fits that person's IPO better. The general recommendations on Bogleheads posts are to shutoff TSM reinvestments (dividends/capital gains) and just hold that TSM mutual fund which has amas...
by wolf359
Fri May 12, 2017 9:49 am
Forum: Personal Consumer Issues
Topic: Does a new car purchase make sense?
Replies: 38
Views: 2471

Re: Does a new car purchase make sense?

So how does lane departure aid in safety? Sounds like a silly feature to get. Seems to me it only encourages someone to text while driving. I guess you're assuming that if they didn't have lane departure they would not be texting or texting less if they didn't have that feature. I'd say it doesn't ...
by wolf359
Fri May 12, 2017 9:38 am
Forum: Personal Consumer Issues
Topic: Does a new car purchase make sense?
Replies: 38
Views: 2471

Re: Does a new car purchase make sense?

Don't get a car loan that exceeds 2-3 years (you're buying too much car, and you'll always be underwater on the loan if it goes beyond 4 years.) This isn't always true. Last year we took out a 5-year, 0.9% loan for $28k on our new minivan with $5k down. The payments definitely exceed the depreciati...
by wolf359
Thu May 11, 2017 2:21 pm
Forum: Investing - Theory, News & General
Topic: Did you buy SNAP?
Replies: 116
Views: 9869

Re: Did you buy SNAP?

I own VTSAX so I suppose I own some of it now?? :beer I was wondering about that, too. As I understand it, the S&P 500 won't add them for at least 6 months if their market cap stays high enough, and even then only if the selection committee thinks they have some long term viability, correct? Ho...
by wolf359
Thu May 11, 2017 2:08 pm
Forum: Investing - Help with Personal Investments
Topic: did I make a mistake funding a traditional IRA?
Replies: 8
Views: 760

Re: did I make a mistake funding a traditional IRA?

I'd say it's the opposite. At the high income level, most people like traditional retirement accounts for the deduction. If you then invest the tax savings, you come out ahead. At the low income level, many would go for the Roth if they expected their income to be higher in the future. However, usi...
by wolf359
Thu May 11, 2017 2:00 pm
Forum: Personal Consumer Issues
Topic: Does a new car purchase make sense?
Replies: 38
Views: 2471

Re: Does a new car purchase make sense?

Keep in mind that if you are in the market for a new commuter car, you may want to check out actual new cars. With the economy back and gas prices down, most people are buying trucks and SUVs. The high MPG commuter cars are just sitting on the lot. You may be able to make an excellent deal that surp...
by wolf359
Thu May 11, 2017 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: Who really needs an umbrella insurance?
Replies: 38
Views: 4854

Re: Who really needs an umbrella insurance?

You don't need umbrella insurance if you're judgement proof. This doesn't mean that you won't get a court judgement against you. It means that there's nothing to collect, rendering the judgement ineffective. The problem is that you have to remain judgement proof for the rest of your life. Generally,...
by wolf359
Thu May 11, 2017 1:28 pm
Forum: Investing - Help with Personal Investments
Topic: did I make a mistake funding a traditional IRA?
Replies: 8
Views: 760

Re: did I make a mistake funding a traditional IRA?

I'd say it's the opposite. At the high income level, most people like traditional retirement accounts for the deduction. If you then invest the tax savings, you come out ahead. At the low income level, many would go for the Roth if they expected their income to be higher in the future. However, usin...
by wolf359
Thu May 11, 2017 10:03 am
Forum: Personal Consumer Issues
Topic: What to do with older laptop?
Replies: 32
Views: 3215

Re: What to do with older laptop?

https://www.neverware.com/#introtext-3 Install Neverware's CloudyReady software. Essentially, it turns it into a Chromebook. Makes the whole thing into a fast web browsing system, and is much easier than Linux to update and patch. If you're only going to be using the Linux system for web browsing, ...
by wolf359
Thu May 11, 2017 9:48 am
Forum: Investing - Help with Personal Investments
Topic: Why rollover to active 403b?
Replies: 7
Views: 466

Re: Why rollover to active 403b?

Is there a special rule prohibiting doing a Roth conversion from IRA after transferring to IRA from 403b? I have never owned a 403b but have transferred both 401k and 457 funds to an IRA and subsequently did Roth conversion from IRA. Ordinary Roth conversions are not the issue. The Backdoor Roth IR...
by wolf359
Wed May 10, 2017 11:59 am
Forum: Investing - Theory, News & General
Topic: Uses of Debt
Replies: 21
Views: 2204

Re: Uses of Debt

1)source of liquidity a common piece of advice is to have 3-6 months of cash or cash equivalents why not use debt as an emergency source of funds, to avoid paying the opportunity cost of a 3-6 month insurance policy? debt can get around the lack of liquidity of some assets, such as CDs or IRAs I ho...
by wolf359
Wed May 10, 2017 11:01 am
Forum: Investing - Help with Personal Investments
Topic: international stocks poised to outperform US ???
Replies: 80
Views: 5823

Re: international stocks poised to outperform US ???

Vanguard's "official" stance is anything between 20% and market weight could be reasonable. In 2014 they moved up to 40% in their Target funds. Reading the relevant documentation, it appears they did that because their predictive asset model said it would be a good idea. Personally, I com...
by wolf359
Wed May 10, 2017 10:46 am
Forum: Personal Consumer Issues
Topic: What to do with older laptop?
Replies: 32
Views: 3215

Re: What to do with older laptop?

https://www.neverware.com/#introtext-3 Install Neverware's CloudyReady software. Essentially, it turns it into a Chromebook. Makes the whole thing into a fast web browsing system, and is much easier than Linux to update and patch. If you're only going to be using the Linux system for web browsing, y...
by wolf359
Tue May 09, 2017 6:57 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable instead of Maxing 401(k)
Replies: 26
Views: 2020

Re: Taxable instead of Maxing 401(k)

If one is contributing to a 401(k) up to employer match for both husband and wife, and also maxing husband and wife IRAs, is it the worst thing in the world financially to fund taxable thereafter as opposed to maxing 401(k)? I understand all the benefits of maxing tax advantaged space, but I like t...
by wolf359
Tue May 09, 2017 6:47 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable instead of Maxing 401(k)
Replies: 26
Views: 2020

Re: Taxable instead of Maxing 401(k)

My 401k has a 1.25% admin fee on top of the least expensive fund which is a 0.30% ER Russel 3000 index fund. The next least expensive is a 0.50% mid cap index fund. Everything else is over 80 basis points. So yes I contribute to get the match and them some (to get my income out of the 25% bracket)....
by wolf359
Tue May 09, 2017 6:40 pm
Forum: Investing - Theory, News & General
Topic: Dividend stocks vs S&P 500
Replies: 24
Views: 2473

Re: Dividend stocks vs S&P 500

Another article about Dividend Aristocrats. The gist is that there's a heavy tendency towards survivorship bias. That is, you look at the current list and backtest it against the S&P 500. It doesn't work so well if you pick the current list and move forward. This article starts with the Dividend...
by wolf359
Tue May 09, 2017 4:03 pm
Forum: Investing - Theory, News & General
Topic: Dividend stocks vs S&P 500
Replies: 24
Views: 2473

Re: Dividend stocks vs S&P 500

By the way, nobody was following the Dividend Aristocrat strategy in 1991. This article is a good counterpoint to the first one.

https://seekingalpha.com/article/390172 ... nightmares
by wolf359
Tue May 09, 2017 3:51 pm
Forum: Investing - Theory, News & General
Topic: Dividend stocks vs S&P 500
Replies: 24
Views: 2473

Re: Dividend stocks vs S&P 500

There's many roads to Dublin. Nothing says that other buy and hold methods might not work. However, I've got some questions about his methodology, since he doesn't quite specify. Is this an aftertax return in a taxable account, or does he assume the tax rate is zero, or does he use a tax deferred ac...
by wolf359
Tue May 09, 2017 11:13 am
Forum: Investing - Help with Personal Investments
Topic: About to retire
Replies: 18
Views: 2821

Re: About to retire

Would like to do this on my own but not confident enough. Not sure what to do There's no problem with getting your finances reviewed by a financial advisor just prior to retirement. Make sure that it's a fee-only financial advisor. Sure, you may pay money up front, and it may seem expensive, but yo...
by wolf359
Tue May 09, 2017 11:00 am
Forum: Investing - Help with Personal Investments
Topic: About to retire
Replies: 18
Views: 2821

Re: About to retire

Have advisor disclose how much upfront commission and fees they receive from riversource variable annuity, and you will soon know why they are pushing for it. Never heard of commission/fee disclosure from a traditional advisor. Will they actually do that? Probably depends on the individual, but no,...
by wolf359
Tue May 09, 2017 10:37 am
Forum: Investing - Help with Personal Investments
Topic: Investing in Note funds
Replies: 12
Views: 962

Re: Investing in Note funds

A quick search yielded this "interesting" article. https://papersourceonline.com/dirty-little-secret-non-performing-notes/ Good article. Thank you! Risk capital, indeed. The interesting thing about this is that papersourceonline sells note training to those same individual investors. The ...
by wolf359
Tue May 09, 2017 10:08 am
Forum: Investing - Help with Personal Investments
Topic: Investing in Note funds
Replies: 12
Views: 962

Re: Investing in Note funds

Anybody have any experience with investing in note funds? It's offering a 10% return with a 3 year term? Company invests in first, second and nonperforming notes. You must be an accredited investor. Interest is paid monthly. I've been checking these pprnoteco.com as well. Are you an accredited inve...

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