Search found 13806 matches

by KlangFool
Wed Nov 13, 2019 6:24 pm
Forum: Personal Investments
Topic: Holding bonds vs 100% equities
Replies: 311
Views: 18720

Re: Holding bonds vs 100% equities

I wonder if the pro 100% stocks crowd would change their views if we have another great depression, with a 80% or more crash in the stock market, or a Japan like stock market that declines for many years. None of these outcomes seem likely due to the past 10 years of US stock performance. Personall...
by KlangFool
Wed Nov 13, 2019 5:54 pm
Forum: Personal Finance (Not Investing)
Topic: The difficulty of discarding frugality?
Replies: 62
Views: 3296

Re: The difficulty of discarding frugality?

<r><QUOTE author="midareff" post_id="4838499" time="1573683020" user_id="22416"><s>[quote=midareff post_id=4838499 time=1573683020 user_id=22416]</s> <QUOTE author="KlangFool" post_id="4837807" time="1573657682" user_id="10499"><s>[quote=KlangFool post_id=4837807 time=1573657682 user_id=10499]</s> <...
by KlangFool
Wed Nov 13, 2019 1:43 pm
Forum: Personal Investments
Topic: Is this too simple
Replies: 15
Views: 2068

Re: Is this too simple

OP, I do not like putting all my eggs in one basket. I like the Wellington Fund. But, I would not put 100% of my portfolio into the Wellington Fund. I have 40% of my portfolio in the Wellington fund. My targeted retirement AA is 60/40. So, my recommendation is A) Put a few years of expense in cash. ...
by KlangFool
Wed Nov 13, 2019 10:08 am
Forum: Personal Finance (Not Investing)
Topic: The difficulty of discarding frugality?
Replies: 62
Views: 3296

Re: The difficulty of discarding frugality?

OP, 1) I save a lot of money. But, I am not frugal. 2) I do "Pay Yourself First" saving method and I spend the rest. 3) I enjoy good food, coffee, and tea. 4) I enjoy good music. 5) I eat out regularly my whole life. I know what I like and where I would spend more money. A) I bought an electric bik...
by KlangFool
Wed Nov 13, 2019 9:47 am
Forum: Personal Finance (Not Investing)
Topic: The difficulty of discarding frugality?
Replies: 62
Views: 3296

Re: The difficulty of discarding frugality?

OP, 1) I save a lot of money. But, I am not frugal. 2) I do "Pay Yourself First" saving method and I spend the rest. 3) I enjoy good food, coffee, and tea. 4) I enjoy good music. 5) I eat out regularly my whole life. I know what I like and where I would spend more money. A) I bought an electric bike...
by KlangFool
Tue Nov 12, 2019 10:40 pm
Forum: Personal Finance (Not Investing)
Topic: I think my friend is already financially independent (through a fantastic bitcoin investment), can you confirm?
Replies: 49
Views: 6787

Re: I think my friend is already financially independent (through a fantastic bitcoin investment), can you confirm?

He has no debt. Thanks everyone for the replies since I last posted. Wondering if we can get the community opinion on questions 2 and 3? 2) Let’s say he really does convert all his assets to index funds, what asset allocation would you recommend? I’m thinking 70/30 or 60/40. 3) Overall, what do you...
by KlangFool
Tue Nov 12, 2019 2:01 pm
Forum: Personal Investments
Topic: Holding bonds vs 100% equities
Replies: 311
Views: 18720

Re: Holding bonds vs 100% equities

<<Catchphrases like "you have to survive in order to succeed" imply that personal finance decisions can lead to death, and really rile me up. >> Why? Just because you are lucky enough not to face this kind of decision, it does not mean it is not true for others. KlangFool Are you really suggesting ...
by KlangFool
Tue Nov 12, 2019 1:36 pm
Forum: Personal Investments
Topic: Holding bonds vs 100% equities
Replies: 311
Views: 18720

Re: Holding bonds vs 100% equities

A person's age does not determine when the person will reach Financial Independence. It is the saving rate as a ratio of the annual expense. If the person saved 1 year of expense every year, the person could reach 25X annual expense in 17 or fewer years with 70/30. Why should the person be 100/0? I...
by KlangFool
Tue Nov 12, 2019 12:59 pm
Forum: Personal Investments
Topic: Holding bonds vs 100% equities
Replies: 311
Views: 18720

Re: Holding bonds vs 100% equities

5) I don't. I hold thousands of publicly traded companies at precisely their market weight. If they all go kaput, and stay kaput for 40 years, we all have much larger problems than money. pharmermummles, I am just going to ask you a simple question. If we go into a recession tomorrow, you are unemp...
by KlangFool
Tue Nov 12, 2019 12:09 pm
Forum: Personal Investments
Topic: Holding bonds vs 100% equities
Replies: 311
Views: 18720

Re: Holding bonds vs 100% equities

pharmermummles, Great work. I agree with your findings and logic and also enjoy Big ERN's posts on the matter. You've done an admirable job responding to Klangfool as well, although you will not likely get anywhere. That's not to say KF is wrong; I do believe he knows his own risk tolerance. Likewi...
by KlangFool
Tue Nov 12, 2019 10:05 am
Forum: Personal Finance (Not Investing)
Topic: College Admission Time, What parents need to be aware and how to be helpful
Replies: 287
Views: 35843

Re: College Admission Time, What parents need to be aware and how to be helpful

Special thanks to livesoft, TomatoTomahto and Klangfool for the lovely discussions here and private messages. For the parents who are helping the kids with college, all the hard work, planning and execution was from our son, we just watched from the sides, encouraged, excepted and had fun along the...
by KlangFool
Tue Nov 12, 2019 10:00 am
Forum: Personal Investments
Topic: Holding bonds vs 100% equities
Replies: 311
Views: 18720

Re: Holding bonds vs 100% equities

KlangFool, 1) I was actually unaware of the limitations of unemployment. Of course, we can ignore it altogether and assume the person in the example has a 6-month emergency fund instead, which I have and recommend for anyone with aggressive stock allocations. That way we get the same results and I ...
by KlangFool
Tue Nov 12, 2019 9:46 am
Forum: Personal Investments
Topic: Holding bonds vs 100% equities
Replies: 311
Views: 18720

Re: Holding bonds vs 100% equities

Actually, while I'm borrowing heavily from his resources, I would also point to Big ERN's Early Retirement Series in general. He talks a lot about how the riskier move is often having too high of a bond allocation, especially for young people who may be planning to retire early. This may not apply ...
by KlangFool
Tue Nov 12, 2019 9:10 am
Forum: Personal Investments
Topic: Holding bonds vs 100% equities
Replies: 311
Views: 18720

Re: Holding bonds vs 100% equities

Actually, while I'm borrowing heavily from his resources, I would also point to Big ERN's Early Retirement Series in general. He talks a lot about how the riskier move is often having too high of a bond allocation, especially for young people who may be planning to retire early. This may not apply ...
by KlangFool
Tue Nov 12, 2019 9:02 am
Forum: Personal Investments
Topic: Holding bonds vs 100% equities
Replies: 311
Views: 18720

Re: Holding bonds vs 100% equities

This is a very interesting topic to me. I'm a young investor (28), so I feel perfectly comfortable being invested heavily in stocks, and I don't plan to own bonds for probably another decade. One of the things that gets missed I think is that one's investment horizon isn't the same as the number of...
by KlangFool
Mon Nov 11, 2019 8:33 pm
Forum: Personal Consumer Issues
Topic: Hi Def Audio listening
Replies: 22
Views: 1221

Re: Hi Def Audio listening

OP, The cheap and best solution high definition audio listening is Sony Monitor Headphone. You would have to spend 10 to 20 times more than that to get any speaker /receiver system to match the performance of this headphone. https://www.amazon.com/Sony-Professional-Diaphragm-Headphone-International/...
by KlangFool
Mon Nov 11, 2019 8:24 pm
Forum: Personal Finance (Not Investing)
Topic: Do you charge your employer for the time that you spend working on your off days?
Replies: 145
Views: 7486

Re: Do you charge your employer for the time that you spend working on your off days?

It's funny how many companies want 99th percentile motivation at 50th percentile compensation. kevinf, 1) This is no different than if you can buy something at 50% off, why won't you do it? 2) Those that know how to leverage their skills and capability to be compensated well, will get paid well. As...
by KlangFool
Mon Nov 11, 2019 3:13 pm
Forum: Personal Finance (Not Investing)
Topic: I think my friend is already financially independent (through a fantastic bitcoin investment), can you confirm?
Replies: 49
Views: 6787

Re: I think my friend is already financially independent (through a fantastic bitcoin investment), can you confirm?

If he is willing to sell the real estate (and pay any tax due), then yes he could probably survive 50-60 years on ~$40k/yr. Otherwise, it's not clear what he is netting on the real estate (after PITI and actual+planned expenses). If he needs $41K+$15K prop tax = $56K at 3% SWR, he should have nearl...
by KlangFool
Mon Nov 11, 2019 10:08 am
Forum: Personal Finance (Not Investing)
Topic: I think my friend is already financially independent (through a fantastic bitcoin investment), can you confirm?
Replies: 49
Views: 6787

Re: I think my friend is already financially independent (through a fantastic bitcoin investment), can you confirm?

If he is willing to sell the real estate (and pay any tax due), then yes he could probably survive 50-60 years on ~$40k/yr. Otherwise, it's not clear what he is netting on the real estate (after PITI and actual+planned expenses). If he needs $41K+$15K prop tax = $56K at 3% SWR, he should have nearl...
by KlangFool
Mon Nov 11, 2019 10:03 am
Forum: Personal Investments
Topic: Asset Allocation for larger portfolio
Replies: 29
Views: 1912

Re: Asset Allocation for larger portfolio

OP,

40/60 with 20 years of expense in bond looks reasonable to me. I do not think it is necessary and/or useful for you to change your AA.

KlangFool
by KlangFool
Mon Nov 11, 2019 9:59 am
Forum: Personal Investments
Topic: Asset Allocation for larger portfolio
Replies: 29
Views: 1912

Re: Asset Allocation for larger portfolio

RogerR wrote:
Mon Nov 11, 2019 6:05 am
70/30 looks aggressive to me at the beginning of retirement ...
RogerR,

Not necessarily true if 30% of the portfolio covers 10 to 20 years of expense.

KlangFool
by KlangFool
Mon Nov 11, 2019 9:12 am
Forum: Personal Finance (Not Investing)
Topic: I think my friend is already financially independent (through a fantastic bitcoin investment), can you confirm?
Replies: 49
Views: 6787

Re: I think my friend is already financially independent (through a fantastic bitcoin investment), can you confirm?

OP, My friend in my home country is being eaten by her real estate. She could have retired long ago if she sold off all her real estate holding. She did not need the money from the real estate investment. But, in this case, by being greedy, the real estate holding is destroying her financially. Klan...
by KlangFool
Mon Nov 11, 2019 9:01 am
Forum: Personal Finance (Not Investing)
Topic: I think my friend is already financially independent (through a fantastic bitcoin investment), can you confirm?
Replies: 49
Views: 6787

Re: I think my friend is already financially independent (through a fantastic bitcoin investment), can you confirm?

If he is willing to sell the real estate (and pay any tax due), then yes he could probably survive 50-60 years on ~$40k/yr. Otherwise, it's not clear what he is netting on the real estate (after PITI and actual+planned expenses). If he needs $41K+$15K prop tax = $56K at 3% SWR, he should have nearl...
by KlangFool
Mon Nov 11, 2019 8:45 am
Forum: Personal Investments
Topic: Holding bonds vs 100% equities
Replies: 311
Views: 18720

Re: Holding bonds vs 100% equities

If a 25 year old, who just started working, asks that I am buying these 2050 target date funds in my 401k then would the BH recommendation be to not buy these since it is too risky and they should be in 70/30 instead of 90/10 ? Would you instead suggest the 25 year old to buy Vanguard Target Retire...
by KlangFool
Mon Nov 11, 2019 8:25 am
Forum: Personal Investments
Topic: Holding bonds vs 100% equities
Replies: 311
Views: 18720

Re: Holding bonds vs 100% equities

This is a very interesting topic to me. I'm a young investor (28), so I feel perfectly comfortable being invested heavily in stocks, and I don't plan to own bonds for probably another decade. One of the things that gets missed I think is that one's investment horizon isn't the same as the number of...
by KlangFool
Sun Nov 10, 2019 9:42 pm
Forum: Personal Investments
Topic: Holding bonds vs 100% equities
Replies: 311
Views: 18720

Re: Holding bonds vs 100% equities

If a 25 year old, who just started working, asks that I am buying these 2050 target date funds in my 401k then would the BH recommendation be to not buy these since it is too risky and they should be in 70/30 instead of 90/10 ? Would you instead suggest the 25 year old to buy Vanguard Target Retire...
by KlangFool
Sun Nov 10, 2019 6:22 pm
Forum: Personal Investments
Topic: Holding bonds vs 100% equities
Replies: 311
Views: 18720

Re: Holding bonds vs 100% equities

Sequence of returns risk is an issue for the older investor with a substantial sized portfolio, much closer to retirement. It is basically irrelevant for a 30 year old trying to determine their appropriate A/A. rascott, It is only irrelevant for someone that can forecast their future and know that ...
by KlangFool
Sun Nov 10, 2019 3:28 pm
Forum: Personal Investments
Topic: Holding bonds vs 100% equities
Replies: 311
Views: 18720

Re: Holding bonds vs 100% equities

I hope this type of comment is allowed, but I want to make it as a parting note. I think KlangFool can sometimes add a valuable perspective of reminding people that things can go wrong unexpectedly. But the last few dozen posts are a perfect illustration of why I think it can be frustrating to enga...
by KlangFool
Sun Nov 10, 2019 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: Do you charge your employer for the time that you spend working on your off days?
Replies: 145
Views: 7486

Re: Do you charge your employer for the time that you spend working on your off days?

Any way, you failed to understand the statement " how they spend the rest of the day ." It is not about " slavering at work ", but about improving yourself, in a sense, not depending on your current job or current employer for your career. MathIsMyWayr, Then, it is out of the current topic. OP is a...
by KlangFool
Sun Nov 10, 2019 1:39 pm
Forum: Personal Investments
Topic: Holding bonds vs 100% equities
Replies: 311
Views: 18720

Re: Holding bonds vs 100% equities

i dont know and i dont care either way. the risk of 70/30, in my above example, was losing $100,000 in a 10 year period by investing 30% in bonds while accumulating and making regular contributions. no withdrawals were planned and none were needed. the investor who chooses to be $100,000 poorer aft...
by KlangFool
Sun Nov 10, 2019 1:36 pm
Forum: Personal Finance (Not Investing)
Topic: Do you charge your employer for the time that you spend working on your off days?
Replies: 145
Views: 7486

Re: Do you charge your employer for the time that you spend working on your off days?

It may depend on the nature of a job, but an exempt employee is hired to own a job, not just to work for the job. He should act like an owner while being employed at the employer. Somebody, a former Bell Telephone Labs. president(?), used to tell incoming hires that their career depend not on the 8...
by KlangFool
Sun Nov 10, 2019 1:27 pm
Forum: Personal Finance (Not Investing)
Topic: Do you charge your employer for the time that you spend working on your off days?
Replies: 145
Views: 7486

Re: Do you charge your employer for the time that you spend working on your off days?

It may depend on the nature of a job, but an exempt employee is hired to own a job, not just to work for the job. He should act like an owner while being employed at the employer. Somebody, a former Bell Telephone Labs. president(?), used to tell incoming hires that their career depend not on the 8...
by KlangFool
Sun Nov 10, 2019 1:13 pm
Forum: Personal Investments
Topic: Holding bonds vs 100% equities
Replies: 311
Views: 18720

Re: Holding bonds vs 100% equities

i dont know and i dont care either way. the risk of 70/30, in my above example, was losing $100,000 in a 10 year period by investing 30% in bonds while accumulating and making regular contributions. no withdrawals were planned and none were needed. the investor who chooses to be $100,000 poorer aft...
by KlangFool
Sun Nov 10, 2019 1:09 pm
Forum: Personal Finance (Not Investing)
Topic: Do you charge your employer for the time that you spend working on your off days?
Replies: 145
Views: 7486

Re: Do you charge your employer for the time that you spend working on your off days?

It may depend on the nature of a job, but an exempt employee is hired to own a job, not just to work for the job. He should act like an owner while being employed at the employer. Somebody, a former Bell Telephone Labs. president(?), used to tell incoming hires that their career depend not on the 8...
by KlangFool
Sun Nov 10, 2019 12:52 pm
Forum: Personal Investments
Topic: Holding bonds vs 100% equities
Replies: 311
Views: 18720

Re: Holding bonds vs 100% equities

EDIT: Separately, I think you're significantly overstating how volatile stocks actually are. 50% drops are uncommon. It simply isn't accurate to state that "The 100/0 usually suffer a big drop (50%) every 10 years or less." I don't really care to get into the precise details here, but I want to not...
by KlangFool
Sun Nov 10, 2019 12:43 pm
Forum: Personal Finance (Not Investing)
Topic: Do you charge your employer for the time that you spend working on your off days?
Replies: 145
Views: 7486

Re: Do you charge your employer for the time that you spend working on your off days?

MathIsMyWayr, Then, what do you called an employee that worked consistently 60 to 70 hours per week without the corresponding compensation? Then, the person was outsourced when the person is burned up and used up? In OP's case, the boss is new and the boss's boss is new. They may not survive long e...
by KlangFool
Sun Nov 10, 2019 12:17 pm
Forum: Personal Finance (Not Investing)
Topic: Do you charge your employer for the time that you spend working on your off days?
Replies: 145
Views: 7486

Re: Do you charge your employer for the time that you spend working on your off days?

That is true. There is so much that we maintain, and we are understaffed, and there is a lack of knowledge sharing. CobraKai, And, you are the source of this problem. You cover up the understaffed problem by overworking. Hence, no new staff is needed. Since you work extra for free, no new budget is...
by KlangFool
Sun Nov 10, 2019 12:07 pm
Forum: Personal Investments
Topic: Holding bonds vs 100% equities
Replies: 311
Views: 18720

Re: Holding bonds vs 100% equities

EDIT: Separately, I think you're significantly overstating how volatile stocks actually are. 50% drops are uncommon. It simply isn't accurate to state that "The 100/0 usually suffer a big drop (50%) every 10 years or less." I don't really care to get into the precise details here, but I want to not...
by KlangFool
Sun Nov 10, 2019 12:02 pm
Forum: Personal Investments
Topic: Holding bonds vs 100% equities
Replies: 311
Views: 18720

Re: Holding bonds vs 100% equities

Historically, the minimal additional potential return is only possible with 20 or more years of no withdrawal. Long-run = 20+ years. 100/0 only win over 70/30 with 20+ years. I think people have already pointed out that KlangFool's criticisms of 100% equities effectively double-count the drawdowns ...
by KlangFool
Sun Nov 10, 2019 11:37 am
Forum: Personal Investments
Topic: Holding bonds vs 100% equities
Replies: 311
Views: 18720

Re: Holding bonds vs 100% equities

EDIT: Separately, I think you're significantly overstating how volatile stocks actually are. 50% drops are uncommon. It simply isn't accurate to state that "The 100/0 usually suffer a big drop (50%) every 10 years or less." I don't really care to get into the precise details here, but I want to not...
by KlangFool
Sun Nov 10, 2019 10:52 am
Forum: Personal Investments
Topic: Holding bonds vs 100% equities
Replies: 311
Views: 18720

Re: Holding bonds vs 100% equities

Historically, the minimal additional potential return is only possible with 20 or more years of no withdrawal. Long-run = 20+ years. 100/0 only win over 70/30 with 20+ years. I think people have already pointed out that KlangFool's criticisms of 100% equities effectively double-count the drawdowns ...
by KlangFool
Sun Nov 10, 2019 10:38 am
Forum: Personal Finance (Not Investing)
Topic: Do you charge your employer for the time that you spend working on your off days?
Replies: 145
Views: 7486

Re: Do you charge your employer for the time that you spend working on your off days?

That is true. There is so much that we maintain, and we are understaffed, and there is a lack of knowledge sharing. CobraKai, And, you are the source of this problem. You cover up the understaffed problem by overworking. Hence, no new staff is needed. Since you work extra for free, no new budget is...
by KlangFool
Sat Nov 09, 2019 11:03 pm
Forum: Personal Investments
Topic: Is this a reasonable allocation for early 30s
Replies: 9
Views: 1050

Re: Is this a reasonable allocation for early 30s

My employer has options for target funds, but fees are pretty high at 0.5-6%. They do have lower vanguard indexes that I tried to use to recreate a target fund. Is this a reasonable allocation for early 30s, just starting off in career and looking to bank 200k a year for several years to get a cush...
by KlangFool
Sat Nov 09, 2019 6:44 pm
Forum: Personal Investments
Topic: Spend It All vs. Leave $$ for the Kids
Replies: 152
Views: 11315

Re: Spend It All vs. Leave $$ for the Kids

I find it hard to believe why parents would not want to leave anything to their kids once they are financially (more than enough) independent. 1789, For a very simple reason that those parents do not believe that will help their kids. My family history of 2,000+ years had proven that. KlangFool You...
by KlangFool
Sat Nov 09, 2019 2:44 pm
Forum: Personal Finance (Not Investing)
Topic: Do you charge your employer for the time that you spend working on your off days?
Replies: 145
Views: 7486

Re: Do you charge your employer for the time that you spend working on your off days?

That is true. There is so much that we maintain, and we are understaffed, and there is a lack of knowledge sharing. CobraKai, And, you are the source of this problem. You cover up the understaffed problem by overworking. Hence, no new staff is needed. Since you work extra for free, no new budget is...
by KlangFool
Sat Nov 09, 2019 2:36 pm
Forum: Personal Finance (Not Investing)
Topic: Do you charge your employer for the time that you spend working on your off days?
Replies: 145
Views: 7486

Re: Do you charge your employer for the time that you spend working on your off days?

CobraKai, <<Perhaps he thought that would be more convenient to him and he wants to test to see how available I am moving forward.>> It is your fault to condition him to your responsiveness. It is a relationship. You need to set the boundary if your boss could not or would not set the boundary. Kla...
by KlangFool
Sat Nov 09, 2019 2:34 pm
Forum: Personal Investments
Topic: Spend It All vs. Leave $$ for the Kids
Replies: 152
Views: 11315

Re: Spend It All vs. Leave $$ for the Kids

I find it hard to believe why parents would not want to leave anything to their kids once they are financially (more than enough) independent. 1789, For a very simple reason that those parents do not believe that will help their kids. My family history of 2,000+ years had proven that. KlangFool Tha...
by KlangFool
Sat Nov 09, 2019 12:51 pm
Forum: Personal Investments
Topic: Spend It All vs. Leave $$ for the Kids
Replies: 152
Views: 11315

Re: Spend It All vs. Leave $$ for the Kids

I find it hard to believe why parents would not want to leave anything to their kids once they are financially (more than enough) independent. 1789, For a very simple reason that those parents do not believe that will help their kids. My family history of 2,000+ years had proven that. KlangFool
by KlangFool
Sat Nov 09, 2019 11:39 am
Forum: Personal Finance (Not Investing)
Topic: Do you charge your employer for the time that you spend working on your off days?
Replies: 145
Views: 7486

Re: Do you charge your employer for the time that you spend working on your off days?

What would be the reaction if you simply texted back "Can it wait until Monday?" That way, everyone is up front about what is going on. If he says "Yes", then you didn't ignore him and you are not potentially missing a non obvious emergency. If the answer is "No", then the third time it happens to ...
by KlangFool
Fri Nov 08, 2019 11:16 pm
Forum: Personal Finance (Not Investing)
Topic: Do you charge your employer for the time that you spend working on your off days?
Replies: 145
Views: 7486

Re: Do you charge your employer for the time that you spend working on your off days?

MathIsMyWayr wrote:
Fri Nov 08, 2019 11:13 pm
If you are an exempt employee, there is not much for you to do about it.
I disagreed. I do not take the call and answer my email on my off day.

KlangFool