Search found 17177 matches

by KlangFool
Tue Sep 29, 2020 9:03 pm
Forum: Personal Finance (Not Investing)
Topic: Friend on the verge of financial ruin, how to help?
Replies: 103
Views: 10990

Re: Friend on the verge of financial ruin, how to help?

The poor and disenfranchised people I have encountered don’t need a shock to their system, they need compassion and assistance, a package that often includes financial help. There’s a lot of pain out there that is not caused by the stereotypical shiny cars and big screen TV purchases. J295, I donat...
by KlangFool
Tue Sep 29, 2020 9:00 pm
Forum: Personal Consumer Issues
Topic: how do you make your home smell good?
Replies: 36
Views: 2150

Re: how do you make your home smell good?

OP,


My brother-in-law likes putting all those scented stuff in his house. Now, he lost his sense of smell. If the house smells good, it is bad for you. You should not smell anything.


I have multiple HEPA filters at home to get rid of all the scents. I only use unscented products.


KlangFool
by KlangFool
Tue Sep 29, 2020 8:49 pm
Forum: Personal Investments
Topic: Need help with my investment plan after reading Larry Swedroe
Replies: 48
Views: 3248

Re: Need help with my investment plan after reading Larry Swedroe

y4rivera, most retirees are in in the same or a lower tax bracket in retirement than while working. This has nothing to do with wealth. There are many very wealthy retired couples out there who are currently in the 12% tax bracket. It has everything to do with how much income you take from your wea...
by KlangFool
Tue Sep 29, 2020 8:22 pm
Forum: Personal Finance (Not Investing)
Topic: How much house can i afford
Replies: 11
Views: 774

Re: How much house can i afford

OP,


A) Do you plan to pay for your kids' college education?


B) What if your plan of working at a high level does not work out?

Don't count the chicken before the egg hatches.

KlangFool
by KlangFool
Tue Sep 29, 2020 2:56 pm
Forum: Investing - Theory, News & General
Topic: VTSAX- is it overvalued as a result of the tech influence
Replies: 17
Views: 1839

Re: VTSAX- is it overvalued as a result of the tech influence

OP,

1) Unless you are 100% VTSAX, why is that a problem?


2) If you are 100% VTSAX, why do you think it is safe to put 100% of your investment into one basket? Where are your International stock index and bond?


KlangFool
by KlangFool
Tue Sep 29, 2020 12:37 pm
Forum: Personal Finance (Not Investing)
Topic: Friend on the verge of financial ruin, how to help?
Replies: 103
Views: 10990

Re: Friend on the verge of financial ruin, how to help?

I am beginning to think that a flat gift with no strings attached is the best approach. neowiser, Why? You will lose her as a friend. And, when she is really desperate and out on a street, there is no one she can turn to. She is not that desperate yet. Save your resource for when she really needs y...
by KlangFool
Tue Sep 29, 2020 10:40 am
Forum: Investing - Theory, News & General
Topic: What happens after the risk shows up?
Replies: 14
Views: 1063

Re: What happens after the risk shows up?

OP,

My AA is 60/40. I plan for a nominal 5% return. If the actual return is much less than that, I will adapt and adjust. I do not care about the expected return.


KlangFool
by KlangFool
Tue Sep 29, 2020 10:23 am
Forum: Personal Investments
Topic: Should I switch from 401k to Roth 401k
Replies: 33
Views: 2083

Re: Should I switch from 401k to Roth 401k

So to clarify, I believe this is what is being recommended based on my situation. Start the Roth 401(k) immediately even if only with $100. This will start the five-year requirement for Roth. In the meantime, continue adding to my existing 401(k); Reason being why pay additional taxes at 22%. Then ...
by KlangFool
Tue Sep 29, 2020 8:17 am
Forum: Personal Investments
Topic: Should I switch from 401k to Roth 401k
Replies: 33
Views: 2083

Re: Should I switch from 401k to Roth 401k

I’m adding additional information as Exitstageleft has suggested as well as other. Hopefully this will give a better picture Of our current situation. Ages are 60 years old, wife 62 years Income approximately $90k, wife $36k We file jointly. 22% current tax bracket , most likely 12% during retireme...
by KlangFool
Mon Sep 28, 2020 2:58 pm
Forum: Investing - Theory, News & General
Topic: Never Ever Rebalance Bonds into Stocks?
Replies: 245
Views: 15896

Re: Never Ever Rebalance Bonds into Stocks?

Interesting thread. Thanks to everyone for their contributions. What I am finding interesting is the emotional vs analytical side of life, and how that related to investing choices. Many people advocate for efficiency and optimization, and it is great, but few really apply that to their life. For e...
by KlangFool
Mon Sep 28, 2020 2:01 pm
Forum: Personal Finance (Not Investing)
Topic: Friend on the verge of financial ruin, how to help?
Replies: 103
Views: 10990

Re: Friend on the verge of financial ruin, how to help?

I don't think anyone would say that giving someone $12,000 when they desperately need it is going to harm them. neowiser, I would. Because in most cases, they don't need it. The exception would be a medical emergency and/or they would be evicted or starving. In most cases, they are living in a life...
by KlangFool
Mon Sep 28, 2020 11:49 am
Forum: Investing - Theory, News & General
Topic: Never Ever Rebalance Bonds into Stocks?
Replies: 245
Views: 15896

Re: Never Ever Rebalance Bonds into Stocks?

2) You give me a graph. Show an actual AA and tell me why it is better. Look up the remaining years in the X asis of that graph. Look up your ratio of net worth to desired spending in the Y axis of that graph. The intersection shows your asset allocation. Repeat every year. Under the given modeling...
by KlangFool
Mon Sep 28, 2020 11:25 am
Forum: Personal Finance (Not Investing)
Topic: Friend on the verge of financial ruin, how to help?
Replies: 103
Views: 10990

Re: Friend on the verge of financial ruin, how to help?

neowiser wrote: Mon Sep 28, 2020 11:21 am
Her state seems to have a good ACA plan so she should qualify for that if she becomes unemployed.

neowiser,

She may qualify for MEDICAID if her income is low enough.


https://www.medicaid.gov/medicaid/eligi ... index.html


KlangFool
by KlangFool
Mon Sep 28, 2020 11:20 am
Forum: Personal Investments
Topic: Need help with my investment plan after reading Larry Swedroe
Replies: 48
Views: 3248

Re: Need help with my investment plan after reading Larry Swedroe

y4rivera, most retirees are in in the same or a lower tax bracket in retirement than while working. This has nothing to do with wealth. There are many very wealthy retired couples out there who are currently in the 12% tax bracket. It has everything to do with how much income you take from your wea...
by KlangFool
Mon Sep 28, 2020 10:50 am
Forum: Investing - Theory, News & General
Topic: Never Ever Rebalance Bonds into Stocks?
Replies: 245
Views: 15896

Re: Never Ever Rebalance Bonds into Stocks?

What HomerJ and others are referring to is basically a form of liability matching. I don't know why you do not see that. I see that. The strategy "rational" from McClung is basically liability matching. According to McClung, that strategy is one of the worst performers in terms of SWR, survival pro...
by KlangFool
Mon Sep 28, 2020 10:44 am
Forum: Investing - Theory, News & General
Topic: Never Ever Rebalance Bonds into Stocks?
Replies: 245
Views: 15896

Re: Never Ever Rebalance Bonds into Stocks?

2) You give me a graph. Show an actual AA and tell me why it is better. Look up the remaining years in the X asis of that graph. Look up your ratio of net worth to desired spending in the Y axis of that graph. The intersection shows your asset allocation. Repeat every year. Under the given modeling...
by KlangFool
Mon Sep 28, 2020 10:18 am
Forum: Investing - Theory, News & General
Topic: Never Ever Rebalance Bonds into Stocks?
Replies: 245
Views: 15896

Re: Never Ever Rebalance Bonds into Stocks?

The error in both McClung and your calculations is probably because you both assume constant spending no matter what. Also, of course, you both seem to ignore the human emotional element. What they've essentially done is to assume that people have preferences that are different from the ones most p...
by KlangFool
Mon Sep 28, 2020 10:10 am
Forum: Investing - Theory, News & General
Topic: Never Ever Rebalance Bonds into Stocks?
Replies: 245
Views: 15896

Re: Never Ever Rebalance Bonds into Stocks?

I have provided you with two asset allocations that satisfy your requirement for a lower probability of failure. First, the modification to your strategy that adds a casino visit. Second, the optimal strategy in the figure I linked. In contrary to what you say, it does take sequence of returns into...
by KlangFool
Mon Sep 28, 2020 10:01 am
Forum: Personal Finance (Not Investing)
Topic: Friend on the verge of financial ruin, how to help?
Replies: 103
Views: 10990

Re: Friend on the verge of financial ruin, how to help?

I am a lifelong Bogleheader, even before I knew about Bogleheads, so none of the suggestions here strike me as harsh. Emotion has always been the bane of good financial decisions, which is why it is so difficult to reconcile the two. neowiser, You cannot help someone that does not know how to manag...
by KlangFool
Mon Sep 28, 2020 9:58 am
Forum: Personal Finance (Not Investing)
Topic: Friend on the verge of financial ruin, how to help?
Replies: 103
Views: 10990

Re: Friend on the verge of financial ruin, how to help?

Very good input here, thank you. I’ve known this friend for 40 years and she is like a sister to me. I suspect if the situation were reversed she would offer to help me. Her daughter shares an apartment with a boyfriend, so moving out would be complicated. neowiser, It is not complicated. The daugh...
by KlangFool
Mon Sep 28, 2020 9:51 am
Forum: Investing - Theory, News & General
Topic: Never Ever Rebalance Bonds into Stocks?
Replies: 245
Views: 15896

Re: Never Ever Rebalance Bonds into Stocks?

<<The only thing I can do at this point is prove that your strategy is suboptimal, this follows directly from bellman's principle>> Then, this proves nothing. The solution has to be based on my goals. Bellman's principle of optimality shows that there is an equivalence relation between "strategy is...
by KlangFool
Mon Sep 28, 2020 9:44 am
Forum: Personal Consumer Issues
Topic: Does anyone recommend this $350 laptop?
Replies: 42
Views: 2624

Re: Does anyone recommend this $350 laptop?

Gateway GWTN141-2: The specs look good to me. I like the AMD processor, but the 4 Gb RAM is soldered in and is not expandable: :oops: https://www.walmart.com/ip/Gateway-14-1-FHD-Ultra-Slim-Notebook-AMD-Ryzen-3-3200U-4GB-RAM-128GB-SSD-Tuned-THX-Audio-Fingerprint-Scanner-Webcam-HDMI-Windows-10-S-Goog...
by KlangFool
Mon Sep 28, 2020 8:52 am
Forum: Investing - Theory, News & General
Topic: Never Ever Rebalance Bonds into Stocks?
Replies: 245
Views: 15896

Re: Never Ever Rebalance Bonds into Stocks?

Another reason to avoid rebalancing is taxes. It seems like much of the conversation here assumes most of one's nest egg is in retirement accounts. What about large taxable portfolios? There's both the tax due upon rebalancing AND the problem of taxflation of a liability-matching-portfolio using TI...
by KlangFool
Mon Sep 28, 2020 8:50 am
Forum: Investing - Theory, News & General
Topic: Never Ever Rebalance Bonds into Stocks?
Replies: 245
Views: 15896

Re: Never Ever Rebalance Bonds into Stocks?

As pointed out by McClung, Bellman's principle of optimality, my optimal asset allocation and several other sources, not "rebalancing into oblivion" unambiguously increases the probability of a failed retirement. It sounds as if investors have an irrational fear of "rebalancing into oblivion", so m...
by KlangFool
Mon Sep 28, 2020 8:45 am
Forum: Investing - Theory, News & General
Topic: Never Ever Rebalance Bonds into Stocks?
Replies: 245
Views: 15896

Re: Never Ever Rebalance Bonds into Stocks?

Another reason to avoid rebalancing is taxes. It seems like much of the conversation here assumes most of one's nest egg is in retirement accounts. What about large taxable portfolios? There's both the tax due upon rebalancing AND the problem of taxflation of a liability-matching-portfolio using TI...
by KlangFool
Mon Sep 28, 2020 8:41 am
Forum: Personal Investments
Topic: Need help with my investment plan after reading Larry Swedroe
Replies: 48
Views: 3248

Re: Need help with my investment plan after reading Larry Swedroe

I would expect my tax rate to be higher though in retirement and my account will be more than 1.3 million since I still have about 25-30 years left of contributions. Is my assumption correct? I'm probably misunderstanding what you're telling me. y4rivera, A) If and when your tax-deferred account is...
by KlangFool
Mon Sep 28, 2020 8:02 am
Forum: Investing - Theory, News & General
Topic: Never Ever Rebalance Bonds into Stocks?
Replies: 245
Views: 15896

Re: Never Ever Rebalance Bonds into Stocks?

Yes, when rebalancing one needs a "floor" if in a severe prolonged stock market decline that provides an essential cushion depending on the investor's risk tolerance and more importantly leaving them with the financial resources they need to survive on if necessary. One should never rebalance into ...
by KlangFool
Mon Sep 28, 2020 7:30 am
Forum: Investing - Theory, News & General
Topic: Never Ever Rebalance Bonds into Stocks?
Replies: 245
Views: 15896

Re: Never Ever Rebalance Bonds into Stocks?

Yes, when rebalancing one needs a "floor" if in a severe prolonged stock market decline that provides an essential cushion depending on the investor's risk tolerance and more importantly leaving them with the financial resources they need to survive on if necessary. One should never rebalance into ...
by KlangFool
Sun Sep 27, 2020 8:32 pm
Forum: Personal Investments
Topic: Need help with my investment plan after reading Larry Swedroe
Replies: 48
Views: 3248

Re: Need help with my investment plan after reading Larry Swedroe

I would expect my tax rate to be higher though in retirement and my account will be more than 1.3 million since I still have about 25-30 years left of contributions. Is my assumption correct? I'm probably misunderstanding what you're telling me. Your tax rate in retirement might be higher than your...
by KlangFool
Sun Sep 27, 2020 8:30 pm
Forum: Personal Investments
Topic: Need help with my investment plan after reading Larry Swedroe
Replies: 48
Views: 3248

Re: Need help with my investment plan after reading Larry Swedroe

I would expect my tax rate to be higher though in retirement and my account will be more than 1.3 million since I still have about 25-30 years left of contributions. Is my assumption correct? I'm probably misunderstanding what you're telling me. y4rivera, A) If and when your tax-deferred account is...
by KlangFool
Sun Sep 27, 2020 4:39 pm
Forum: Personal Investments
Topic: Need help with my investment plan after reading Larry Swedroe
Replies: 48
Views: 3248

Re: Need help with my investment plan after reading Larry Swedroe

401k- 32k (NT S&P 500 IDX NL 4)- I contribute up to company match of 4%. It was initially Traditional but I just changed it to Roth. y4rivera, Why do you think this is a good idea? If you think you are behind in retirement. paying unnecessary taxes now is not going to help you. A) You should max up...
by KlangFool
Sun Sep 27, 2020 4:00 pm
Forum: Personal Investments
Topic: Need help with my investment plan after reading Larry Swedroe
Replies: 48
Views: 3248

Re: Need help with my investment plan after reading Larry Swedroe

401k- 32k (NT S&P 500 IDX NL 4)- I contribute up to company match of 4%. It was initially Traditional but I just changed it to Roth. y4rivera, Why do you think this is a good idea? If you think you are behind in retirement. paying unnecessary taxes now is not going to help you. A) You should max up...
by KlangFool
Sun Sep 27, 2020 8:11 am
Forum: Personal Consumer Issues
Topic: Severance / unemployment
Replies: 16
Views: 1633

Re: Severance / unemployment

OP,


Do you receive the severance in one lump sum? Or, it is paid out several weeks? In some states, that matters too.


KlangFool
by KlangFool
Sat Sep 26, 2020 3:46 pm
Forum: Investing - Theory, News & General
Topic: Never Ever Rebalance Bonds into Stocks?
Replies: 245
Views: 15896

Re: Never Ever Rebalance Bonds into Stocks?

KlangFool, ($300,000 / $1,500,000) = 20% . In the context of my post, this represents a short-term -80% portfolio loss. No further calculation is needed to answer that this is a 100% stocks portfolio. Why are you asking such an obvious question? longinvest, My brain is stuck. It is not obvious to m...
by KlangFool
Sat Sep 26, 2020 3:43 pm
Forum: Investing - Theory, News & General
Topic: Never Ever Rebalance Bonds into Stocks?
Replies: 245
Views: 15896

Re: Never Ever Rebalance Bonds into Stocks?

The net effect for me with an AA of 60/40 and a portfolio of 1.5M is that I would never reach a minimal limit of 300K in FI under your scenario. This is assuming that I rebalance. KlangFool, effectively. Stocks would need to gradually lose -93% of their value for the regularly rebalanced 60/40 port...
by KlangFool
Sat Sep 26, 2020 3:14 pm
Forum: Investing - Theory, News & General
Topic: Never Ever Rebalance Bonds into Stocks?
Replies: 245
Views: 15896

Re: Never Ever Rebalance Bonds into Stocks?

KlangFool, ($300,000 / $1,500,000) = 20% . In the context of my post, this represents a short-term -80% portfolio loss. No further calculation is needed to answer that this is a 100% stocks portfolio. Why are you asking such an obvious question? longinvest, My brain is stuck. It is not obvious to m...
by KlangFool
Sat Sep 26, 2020 12:42 pm
Forum: Investing - Theory, News & General
Topic: Never Ever Rebalance Bonds into Stocks?
Replies: 245
Views: 15896

Re: Never Ever Rebalance Bonds into Stocks?

Let's take an investor with a $1,000,000 portfolio who doesn't want her portfolio to drop below $500,000. The investor considers that a potential yet low-probability catastrophic scenario for stocks is a loss of -80% . longinvest, I am totally confused. Would you mind use the following set of numbe...
by KlangFool
Sat Sep 26, 2020 12:19 pm
Forum: Investing - Theory, News & General
Topic: Never Ever Rebalance Bonds into Stocks?
Replies: 245
Views: 15896

Re: Never Ever Rebalance Bonds into Stocks?

Let's take an investor with a $1,000,000 portfolio who doesn't want her portfolio to drop below $500,000. The investor considers that a potential yet low-probability catastrophic scenario for stocks is a loss of -80% . longinvest, I am totally confused. Would you mind use the following set of numbe...
by KlangFool
Fri Sep 25, 2020 5:03 pm
Forum: Personal Finance (Not Investing)
Topic: Saving for a downpayment - little by little, or later lump sum?
Replies: 20
Views: 1409

Re: Saving for a downpayment - little by little, or later lump sum?

I'm not sure it's wise to invest any money one plans on using for a downpayment or a mortgage. What if there's a market crash before one diverts the money from a brokerage to a savings account? That's the time when one might be able to purchase a house at a discount--and when already having cash in...
by KlangFool
Fri Sep 25, 2020 4:35 pm
Forum: Personal Finance (Not Investing)
Topic: Saving for a downpayment - little by little, or later lump sum?
Replies: 20
Views: 1409

Re: Saving for a downpayment - little by little, or later lump sum?

I'm not sure it's wise to invest any money one plans on using for a downpayment or a mortgage. What if there's a market crash before one diverts the money from a brokerage to a savings account? That's the time when one might be able to purchase a house at a discount--and when already having cash in...
by KlangFool
Fri Sep 25, 2020 4:17 pm
Forum: Personal Finance (Not Investing)
Topic: Saving for a downpayment - little by little, or later lump sum?
Replies: 20
Views: 1409

Re: Saving for a downpayment - little by little, or later lump sum?

I'm not sure it's wise to invest any money one plans on using for a downpayment or a mortgage. What if there's a market crash before one diverts the money from a brokerage to a savings account? That's the time when one might be able to purchase a house at a discount--and when already having cash in...
by KlangFool
Fri Sep 25, 2020 4:09 pm
Forum: Personal Investments
Topic: VTSAX for roughly 10 year investment?
Replies: 11
Views: 1765

Re: VTSAX for roughly 10 year investment?

OP, A) There is no reason for you to save money specifically for a house in 10 years. If your annual saving is high enough, you can buy a house with your annual savings. If your annual saving is not high enough, you cannot afford to buy a house. Then, there is no reason to save specifically for a ho...
by KlangFool
Fri Sep 25, 2020 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: Using Margin Loan to Buy House
Replies: 11
Views: 715

Re: Using Margin Loan to Buy House

thebeerfund wrote: Fri Sep 25, 2020 2:31 pm
For context, I have a $6 million in my portfolio so I would never be margin called.


thebeerfund,

This could only be true if you have 6 million CASH in your portfolio.


KlangFool
by KlangFool
Fri Sep 25, 2020 2:18 pm
Forum: Personal Finance (Not Investing)
Topic: At what networth is okay to splurge on a 200k car ? (Tesla roadster)
Replies: 159
Views: 10343

Re: At what networth is okay to splurge on a 200k car ? (Tesla roadster)

Watty wrote: Fri Sep 25, 2020 1:39 pm
sjl333 wrote: Fri Sep 25, 2020 1:32 pm Was wondering what networth you need to be able to buy a 200k car , even if it extends your retirement age by a couple of years ?
To be able to afford a $200K car you should be at a point where it should not impact your retirement age.

+1,000.


KlangFool
by KlangFool
Fri Sep 25, 2020 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: Saving for a downpayment - little by little, or later lump sum?
Replies: 20
Views: 1409

Re: Saving for a downpayment - little by little, or later lump sum?

@KF I must not understand what you mean by cashflowing the downpayment. For example on your points: a) Annual savings are around $57k in 401k including match plus the $160k in taxable I mentioned. b) Annual expense ~$90k for needs, $108k including wants c) current emergency fund is 4 months ($30k) ...
by KlangFool
Fri Sep 25, 2020 1:12 pm
Forum: Investing - Theory, News & General
Topic: Help my try to rationalize why I should ignore Nasdaq
Replies: 39
Views: 2264

Re: Help my try to rationalize why I should ignore Nasdaq

Will start out by saying all my equities are in SP500. Aside from the dot com bust it seems that Nasdaq has consistently and significantly outperformed sp500. I feel like I’m burying my head in the sand as to try not think that times are different and that maybe sp500 is somehow becoming more outda...
by KlangFool
Fri Sep 25, 2020 1:07 pm
Forum: Personal Finance (Not Investing)
Topic: Saving for a downpayment - little by little, or later lump sum?
Replies: 20
Views: 1409

Re: Saving for a downpayment - little by little, or later lump sum?

muffins14, Why do you need to save for a house downpayment? You only need 300K aka 20% for the 1.5M house and you are saving 160K per year into the taxable account. Between your annual taxable saving and your emergency fund, you can "cash flow" your house down payment. KlangFool Thanks for your tho...
by KlangFool
Fri Sep 25, 2020 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: Saving for a downpayment - little by little, or later lump sum?
Replies: 20
Views: 1409

Re: Saving for a downpayment - little by little, or later lump sum?

Hypothetically let's say I want to purchase a condo/house for $1.5M sometime in 3-5 years. But then again, maybe 3-5 years comes, and I do not want to purchase. Currently I have $420k in a taxable account and about $650k across all account types. I can add about $160k yearly to the taxable account....
by KlangFool
Fri Sep 25, 2020 3:48 am
Forum: Personal Finance (Not Investing)
Topic: Large Nest Egg...should I run a deficit to pay a larger mortgage?
Replies: 40
Views: 2917

Re: Large Nest Egg...should I run a deficit to pay a larger mortgage?

OP,

Your nest egg (1.4 million) plus your annual income of 110K per year is not big enough to support the purchase of a 900K house. It won't matter what kind of mortgage you are taking.


KlangFool
by KlangFool
Thu Sep 24, 2020 4:57 pm
Forum: Personal Consumer Issues
Topic: Buying a house in a city with historically declining housing prices?
Replies: 17
Views: 1849

Re: Buying a house in a city with historically declining housing prices?

Hi Bogleheaders, I moved from the Boston area to greater CLE in the summer...mostly to be closer to family. Renting a very nice house for the time being and dipping my toe into looking at houses. Need some advice on buying in a type of COL area I'm not used to. Background: the CLE area market has h...