Search found 6671 matches

by KlangFool
Fri Oct 20, 2017 10:21 pm
Forum: Investing - Theory, News & General
Topic: Why do I need bonds? (I'm 30)
Replies: 4
Views: 92

Re: Why do I need bonds? (I'm 30)

I have not Invested through a bear market, right now I am 80/20 AA from recommendations from this site. Looking for more wisdom as to why I need bonds with 20+years to invest. :beer TheHouse7, How do you know that you have 20+ years to invest? Who guaranteed that for you? It could be 5, 10, 15, 20,...
by KlangFool
Fri Oct 20, 2017 4:26 pm
Forum: Investing - Help with Personal Investments
Topic: Worry market crush, selling 50%, but increase buying 100%
Replies: 29
Views: 1724

Re: Worry market crush, selling 50%, but increase buying 100%

I was 100% until last couple of month. I was 100% during 2008 because I have no time to escape then. This time I am leaving the theater earlier. Don't want to wait for exit. WhiteMaxima, What is your permanent AA? If it is 80/20, why are you 50/50 now? You are market timing. KlangFool My permanent ...
by KlangFool
Fri Oct 20, 2017 3:50 pm
Forum: Investing - Help with Personal Investments
Topic: Worry market crush, selling 50%, but increase buying 100%
Replies: 29
Views: 1724

Re: Worry market crush, selling 50%, but increase buying 100%

WhiteMaxima wrote:
Fri Oct 20, 2017 3:45 pm
I was 100% until last couple of month. I was 100% during 2008 because I have no time to escape then. This time I am leaving the theater earlier. Don't want to wait for exit.
WhiteMaxima,

What is your permanent AA? If it is 80/20, why are you 50/50 now? You are market timing.

KlangFool
by KlangFool
Fri Oct 20, 2017 3:38 pm
Forum: Investing - Help with Personal Investments
Topic: Worry market crush, selling 50%, but increase buying 100%
Replies: 29
Views: 1724

Re: Worry market crush, selling 50%, but increase buying 100%

OP,

What are you AA?

A) 80/20?

B) 50/50?

Regardless of your answer, you are marketing timing before and you are marketing timing now.

1) If your AA is 50/50, why are you putting 100% of your money into stock now?

2) If your AA is 80/20, why do you switch to 50/50?

KlangFool
by KlangFool
Fri Oct 20, 2017 12:56 pm
Forum: Personal Finance (Not Investing)
Topic: I have to fire someone that I care about personally
Replies: 83
Views: 4326

Re: I have to fire someone that I care about personally

OP, 1) You and your band had decided to kick her out. Your future plan does not include her. 2) If you believe that you can and should smooth her transition to a new work, offer her some form of severance pay. 3) You should include at least one more band member in the meeting. Or else, it may look l...
by KlangFool
Wed Oct 18, 2017 11:48 am
Forum: Personal Finance (Not Investing)
Topic: Is a doctor's practice one of the safest and most profitable businesses?
Replies: 58
Views: 3349

Re: Is a doctor's practice one of the safest and most profitable businesses?

OP, If you get a chance, read the book, "The Millionaire Next Door". The most profitable small businesses are junkyards and pawn shops. KlangFool Read it already and reading it is one of the reasons for my post. It says the most profitable businesses are coal mining # 1 and then office of physician...
by KlangFool
Wed Oct 18, 2017 11:33 am
Forum: Personal Finance (Not Investing)
Topic: Is a doctor's practice one of the safest and most profitable businesses?
Replies: 58
Views: 3349

Re: Is a doctor's practice one of the safest and most profitable businesses?

OP, If you get a chance, read the book, "The Millionaire Next Door". The most profitable small businesses are junkyards and pawn shops. KlangFool Read it already and reading it is one of the reasons for my post. It says the most profitable businesses are coal mining # 1 and then office of physician...
by KlangFool
Wed Oct 18, 2017 11:26 am
Forum: Personal Finance (Not Investing)
Topic: Is a doctor's practice one of the safest and most profitable businesses?
Replies: 58
Views: 3349

Re: Is a doctor's practice one of the safest and most profitable businesses?

OP,

If you get a chance, read the book, "The Millionaire Next Door". The most profitable small businesses are junkyards and pawn shops.

KlangFool
by KlangFool
Wed Oct 18, 2017 9:43 am
Forum: Personal Consumer Issues
Topic: Anyone who started a business what made you comfortable enough to take the chance?
Replies: 25
Views: 1887

Re: Anyone who started a business what made you comfortable enough to take the chance?

One last benefit, did I say there was any?. . . You can never be fired or laid off. (my favorite) Sandtrap, +1 1) Good Post. In summary, if the goal is to be "comfortable", do not start a business. Constant rejections and failures are part of business life. If you enjoy that kind of challenges, it ...
by KlangFool
Wed Oct 18, 2017 9:39 am
Forum: Investing - Theory, News & General
Topic: Life-insurance for young couple. Advice?
Replies: 23
Views: 1746

Re: Life-insurance for young couple. Advice?

OP, 1) Why do you need life insurance beyond whatever provided by your employer? If you lose your employment, you can lose your life insurance coverage. The second point, more importantly, is because the employer is offering you coverage you are paying group rates, group rates underwritten by insur...
by KlangFool
Wed Oct 18, 2017 8:26 am
Forum: Investing - Theory, News & General
Topic: Life-insurance for young couple. Advice?
Replies: 23
Views: 1746

Re: Life-insurance for young couple. Advice?

OP, 1) Why do you need life insurance beyond whatever provided by your employer? If you lose your employment, you can lose your life insurance coverage. The second point, more importantly, is because the employer is offering you coverage you are paying group rates, group rates underwritten by insur...
by KlangFool
Wed Oct 18, 2017 8:01 am
Forum: Investing - Theory, News & General
Topic: Life-insurance for young couple. Advice?
Replies: 23
Views: 1746

Re: Life-insurance for young couple. Advice?

OP, 1) Why do you need life insurance beyond whatever provided by your employer? 2) At your age, short-term and long-term disability are a bigger financial threat than death. You are more likely to be disabled than died. And, it is more costly to be disabled. So, what are your disability coverage at...
by KlangFool
Wed Oct 18, 2017 7:39 am
Forum: Personal Consumer Issues
Topic: Anyone who started a business what made you comfortable enough to take the chance?
Replies: 25
Views: 1887

Re: Anyone who started a business what made you comfortable enough to take the chance?

One last benefit, did I say there was any?. . . You can never be fired or laid off. (my favorite) Sandtrap, +1 1) Good Post. In summary, if the goal is to be "comfortable", do not start a business. Constant rejections and failures are part of business life. If you enjoy that kind of challenges, it ...
by KlangFool
Tue Oct 17, 2017 9:30 pm
Forum: Investing - Theory, News & General
Topic: Dividends vs. Capital Gains for Spending Needs?
Replies: 200
Views: 14578

Re: Dividends vs. Capital Gains for Spending Needs?

Triceratop, In my statement I was responding to the conversation that PKCrafter & Dbr were having concerning "qualities & preferences" in the dividend puzzle. I was trying to say that I understand why investors are confused about dividends. I consider myself very logical. Before I started investing...
by KlangFool
Tue Oct 17, 2017 5:08 pm
Forum: Personal Consumer Issues
Topic: Anyone who started a business what made you comfortable enough to take the chance?
Replies: 25
Views: 1887

Re: Anyone who started a business what made you comfortable enough to take the chance?

OP, I come from a multi-generation business family. So, I have no illusion about running a business. 1) So, the first key question to ask is are you the kind of person suitable to start and run your own business? I know I am not. One of the key requirement is as a small business person, you need to ...
by KlangFool
Tue Oct 17, 2017 9:09 am
Forum: Investing - Help with Personal Investments
Topic: Thinking we are close to winning the game
Replies: 35
Views: 5679

Re: Thinking we are close to winning the game

Thanks KlangFool. Last year DH + DW gross was $240K. All retirement, 529 and general savings for last year was ~ $105K. While last year was exceptional savings rate for us, we've really been trying to knock it out of the park with savings these past few years since our house was paid off. Being deb...
by KlangFool
Tue Oct 17, 2017 8:05 am
Forum: Investing - Theory, News & General
Topic: Regular Taxable Accounts vs Tax-Advantaged
Replies: 19
Views: 1570

Re: Regular Taxable Accounts vs Tax-Advantaged

Ultimately most of my accounts are in tax advantaged and i think it saves me a LOT of effort. I don’t have to worry about dividends and capital gains basis calcs and taxes, and don’t have to worry about the tax impact of making a portfolio change. IMO they are much easier than a taxable account. In...
by KlangFool
Mon Oct 16, 2017 7:47 pm
Forum: Investing - Help with Personal Investments
Topic: Thinking we are close to winning the game
Replies: 35
Views: 5679

Re: Thinking we are close to winning the game

Thanks KlangFool. Fed marginal rate is 28%. As you and several others have pointed out, I really need to get a handle on my annual expenses. I'll work on yet another tracking spreadsheet in an effort to truly measure. Hopefully, I'm not too shocked. AllMostThere, You do not need a spreadsheet. Tell...
by KlangFool
Mon Oct 16, 2017 7:11 pm
Forum: Investing - Help with Personal Investments
Topic: Thinking we are close to winning the game
Replies: 35
Views: 5679

Re: Thinking we are close to winning the game

Thanks KlangFool. Fed marginal rate is 28%. As you and several others have pointed out, I really need to get a handle on my annual expenses. I'll work on yet another tracking spreadsheet in an effort to truly measure. Hopefully, I'm not too shocked. AllMostThere, You do not need a spreadsheet. Tell...
by KlangFool
Mon Oct 16, 2017 6:48 pm
Forum: Personal Consumer Issues
Topic: How long for hedonic adaptation to set in?
Replies: 109
Views: 6989

Re: How long for hedonic adaptation to set in?

And I guess I should have added to my housing comments - I was meaning that the OP could afford the housing upgarde without undue financial burden (which it sounds like he can do.) I think pretty much ANY large purchase (obviously housing is usually amongst the biggest purchases) that ties you down...
by KlangFool
Mon Oct 16, 2017 6:42 pm
Forum: Investing - Theory, News & General
Topic: Regular Taxable Accounts vs Tax-Advantaged
Replies: 19
Views: 1570

Re: Regular Taxable Accounts vs Tax-Advantaged

OP, 1) https://www.bogleheads.org/forum/viewtopic.php?t=188491 Have you read this thread and understand how this spreadsheet does its calculation? You need to understand the cost associated with the taxable account investing in order to answer your original question. 2) If it costs a person about 1%...
by KlangFool
Mon Oct 16, 2017 6:02 pm
Forum: Personal Consumer Issues
Topic: How long for hedonic adaptation to set in?
Replies: 109
Views: 6989

Re: How long for hedonic adaptation to set in?

And I guess I should have added to my housing comments - I was meaning that the OP could afford the housing upgarde without undue financial burden (which it sounds like he can do.) I think pretty much ANY large purchase (obviously housing is usually amongst the biggest purchases) that ties you down...
by KlangFool
Mon Oct 16, 2017 12:02 pm
Forum: Personal Finance (Not Investing)
Topic: You career roots and your path to financial independence. "Actionable: steps and tips for others?
Replies: 56
Views: 5438

Re: You career roots and your path to financial independence. "Actionable: steps and tips for others?

I work for a big oil company and our mechanics, electricians, and other hourly skilled-labor folks who graduate with 2 years degrees come out of school making 6 figures + pensions + generous 401k plans.These kids are 20-22 right out of school making good money and typically make more than our entry...
by KlangFool
Mon Oct 16, 2017 11:23 am
Forum: Personal Finance (Not Investing)
Topic: You career roots and your path to financial independence. "Actionable: steps and tips for others?
Replies: 56
Views: 5438

Re: You career roots and your path to financial independence. "Actionable: steps and tips for others?

At risk of repeating what others have written. - Got out of college with little debt (especially compared to today's world) - Bought a cheap car. Paid off student loans as quickly as humanly possible - Got a roommate to start off with. - Participated as much as I could in the 401K. Each year's rais...
by KlangFool
Mon Oct 16, 2017 10:43 am
Forum: Personal Finance (Not Investing)
Topic: You career roots and your path to financial independence. "Actionable: steps and tips for others?
Replies: 56
Views: 5438

Re: You career roots and your path to financial independence. "Actionable: steps and tips for others?

I work for a big oil company and our mechanics, electricians, and other hourly skilled-labor folks who graduate with 2 years degrees come out of school making 6 figures + pensions + generous 401k plans.These kids are 20-22 right out of school making good money and typically make more than our entry...
by KlangFool
Mon Oct 16, 2017 8:39 am
Forum: Investing - Help with Personal Investments
Topic: Thinking we are close to winning the game
Replies: 35
Views: 5679

Re: Thinking we are close to winning the game

Thanks KlangFool. Fed marginal rate is 28%. As you and several others have pointed out, I really need to get a handle on my annual expenses. I'll work on yet another tracking spreadsheet in an effort to truly measure. Hopefully, I'm not too shocked. AllMostThere, You do not need a spreadsheet. Tell...
by KlangFool
Mon Oct 16, 2017 8:34 am
Forum: Personal Consumer Issues
Topic: How long for hedonic adaptation to set in?
Replies: 109
Views: 6989

Re: How long for hedonic adaptation to set in?

OP, 1) How does any of this matters if you save enough? If you "Pay Yourself First" and save enough, you can spend the rest and it won't matter. So, if your first question is whether you save enough and the answer is yes, the rest won't matter. Your problem is you spend first and save later. This i...
by KlangFool
Sun Oct 15, 2017 9:12 pm
Forum: Investing - Help with Personal Investments
Topic: Thinking we are close to winning the game
Replies: 35
Views: 5679

Re: Thinking we are close to winning the game

Expenses: $70K estimated, but need to confirm with better tracking of spending. Could actually be lower and I find it hard to believe we are spending nearly $6K per month. Tax Rate: 18% Effective Federal Rate, 6% State Rate AllMostThere, You can do a quick and simple sanity check on your annual exp...
by KlangFool
Sun Oct 15, 2017 9:05 pm
Forum: Personal Finance (Not Investing)
Topic: You career roots and your path to financial independence. "Actionable: steps and tips for others?
Replies: 56
Views: 5438

Re: You career roots and your path to financial independence. "Actionable: steps and tips for others?

When I was 5 years old my mother reports I was concerned I would end up a "putjes schepper" which would be the equivalent of a manual worker cleaning out septic tanks ( no pumps and hard physical labour). I thought it was surprising that my child at age 5 great fear was that he would work at Mac Do...
by KlangFool
Sun Oct 15, 2017 4:46 pm
Forum: Personal Finance (Not Investing)
Topic: You career roots and your path to financial independence. "Actionable: steps and tips for others?
Replies: 56
Views: 5438

Re: You career roots and your path to financial independence. "Actionable: steps and tips for others?

Folks, My family spread all over the world and across multiple income levels. Many of them are rich and FI. It is very simple and very hard. If your household earns at least the median household income level of that country. it always comes down to how much you save and invest. If you earn enough (m...
by KlangFool
Sun Oct 15, 2017 3:41 pm
Forum: Personal Finance (Not Investing)
Topic: You career roots and your path to financial independence. "Actionable: steps and tips for others?
Replies: 56
Views: 5438

Re: You career roots and your path to financial independence. "Actionable: steps and tips for others?

I work for a big oil company and our mechanics, electricians, and other hourly skilled-labor folks who graduate with 2 years degrees come out of school making 6 figures + pensions + generous 401k plans.These kids are 20-22 right out of school making good money and typically make more than our entry...
by KlangFool
Sat Oct 14, 2017 8:23 pm
Forum: Personal Consumer Issues
Topic: How long for hedonic adaptation to set in?
Replies: 109
Views: 6989

Re: How long for hedonic adaptation to set in?

terran wrote:
Sat Oct 14, 2017 7:27 pm

You may have simplified that particular decision, but that doesn't mean you have made the optimal decision.
terran,

I am not interested in an optimal solution. I am interested in good enough solution.

KlangFool
by KlangFool
Sat Oct 14, 2017 7:13 pm
Forum: Personal Consumer Issues
Topic: How long for hedonic adaptation to set in?
Replies: 109
Views: 6989

Re: How long for hedonic adaptation to set in?

OP, I want balance in my life. I want to save enough and FI in a reasonable number of years. But, I do not want to live in an absolute frugal lifestyle. So, I compromised. A) Saving 1 year of expense every year seems to be a good balance. B) Working for 20+ years out of possible 40+ years seems a sa...
by KlangFool
Sat Oct 14, 2017 7:05 pm
Forum: Personal Consumer Issues
Topic: How long for hedonic adaptation to set in?
Replies: 109
Views: 6989

Re: How long for hedonic adaptation to set in?

So it sounds like you decided "I wlll save as much as I spend each year" and went from there? I think that is a laudable goal to get someone to spend less and save a boatload of money. For the last few years we've been saving about twice what we spend. This is just because we have only increased sp...
by KlangFool
Sat Oct 14, 2017 6:54 pm
Forum: Personal Consumer Issues
Topic: How long for hedonic adaptation to set in?
Replies: 109
Views: 6989

Re: How long for hedonic adaptation to set in?

You said immediately above that you determine how much to save, then you spend the rest. That makes sense. But then in an earlier post, you said that you save one year of expenses annually. So is it just coincidence that you save one year of expenses annually? Or did you decide that you were going ...
by KlangFool
Sat Oct 14, 2017 5:14 pm
Forum: Personal Consumer Issues
Topic: How long for hedonic adaptation to set in?
Replies: 109
Views: 6989

Re: How long for hedonic adaptation to set in?

OP, If you have spare aka unallocated money, A) You save it. Then, you are a miser. You unnecessary reduce your current lifestyle when it may not matter. B) You spend it. But, in this case, you spend it just because it is there. It is not necessary gives you the best value for your money in term of ...
by KlangFool
Sat Oct 14, 2017 4:58 pm
Forum: Personal Consumer Issues
Topic: How long for hedonic adaptation to set in?
Replies: 109
Views: 6989

Re: How long for hedonic adaptation to set in?

OP, 1) How does any of this matters if you save enough? If you "Pay Yourself First" and save enough, you can spend the rest and it won't matter. So, if your first question is whether you save enough and the answer is yes, the rest won't matter. Your problem is you spend first and save later. This i...
by KlangFool
Sat Oct 14, 2017 3:14 pm
Forum: Personal Consumer Issues
Topic: How long for hedonic adaptation to set in?
Replies: 109
Views: 6989

Re: How long for hedonic adaptation to set in?

OP, 1) How does any of this matters if you save enough? If you "Pay Yourself First" and save enough, you can spend the rest and it won't matter. So, if your first question is whether you save enough and the answer is yes, the rest won't matter. Your problem is you spend first and save later. This is...
by KlangFool
Sat Oct 14, 2017 1:52 pm
Forum: Investing - Theory, News & General
Topic: 100% in bond to wait for market crash?
Replies: 122
Views: 11705

Re: 100% in bond to wait for market crash?

Folks and OP, Your choice is not limited to 100% stock or 100% bond. It is people like you that should invest in one of those all-in-one funds. https://investor.vanguard.com/mutual-funds/lifestrategy/?lang=en#/?lang=en Pick your AA and buy one of those funds. You do not have to worry about whether s...
by KlangFool
Sat Oct 14, 2017 11:10 am
Forum: Investing - Help with Personal Investments
Topic: X times salary, backwards calculation?
Replies: 23
Views: 2201

Re: X times salary, backwards calculation?

Actually, I did find a heuristic formula, and as is usually the case, I complicated the question way beyond where I should have. Retirement age really has little to do with it. It's just a simple calculation of desired income and withdrawal rate. Thus: x = desire income y = withdrawal rate z = prin...
by KlangFool
Sat Oct 14, 2017 11:02 am
Forum: Investing - Help with Personal Investments
Topic: X times salary, backwards calculation?
Replies: 23
Views: 2201

Re: X times salary, backwards calculation?

Hi all: I'm trying to determine if there is a backward applicable formula to arrive at how much retirement savings one should have. For example, if a rule of thumb is that one should have 12X annual salary to retire at 65, what is the ratio for each year EARLIER one would like to retire? If I'm goi...
by KlangFool
Fri Oct 13, 2017 9:39 pm
Forum: Investing - Theory, News & General
Topic: For those who prefer mortgages over cash: At what rate would that switch?
Replies: 8
Views: 1485

Re: For those who prefer mortgages over cash: At what rate would that switch?

OP, You plan to buy a 500K house. You have 100K down payment plus 1 million elsewhere. A) If you take a mortgage, you have a 400K mortgage plus 1 million elsewhere. B) If you pay cash for the house, you only have 600K elsewhere. I would not pay cash for the house. There is too much money tied up wit...
by KlangFool
Fri Oct 13, 2017 6:56 pm
Forum: Investing - Help with Personal Investments
Topic: wellington fund ( VWELX )
Replies: 24
Views: 2491

Re: wellington fund ( VWELX )

OP,

40% of my portfolio is in the Wellington fund. They are all in tax-advantaged accounts.

KlangFool
by KlangFool
Fri Oct 13, 2017 11:33 am
Forum: Personal Finance (Not Investing)
Topic: Best Career Advice for those over "50"
Replies: 60
Views: 6238

Re: Best Career Advice for those over "50"

Folks, https://openbadges.org/get-started/ You need a verifiable method to prove your skill and learning across multiple employers and industries. Aka, your credential. You could either use your social network as your referral to prove your credential. Or, there is a new system: open badges. Some em...
by KlangFool
Fri Oct 13, 2017 9:06 am
Forum: Personal Finance (Not Investing)
Topic: Best Career Advice for those over "50"
Replies: 60
Views: 6238

Re: Best Career Advice for those over "50"

I agree with you however in recent years things have changed. In the major metropolitan areas of the West Coast, it is just getting darned expensive to live. Housing is more expensive, even the cheaper options have been bid up. Healthcare premiums have zoomed, and now that I am on my own to buy my ...
by KlangFool
Fri Oct 13, 2017 9:05 am
Forum: Personal Finance (Not Investing)
Topic: Best Career Advice for those over "50"
Replies: 60
Views: 6238

Re: Best Career Advice for those over "50"

maroon wrote:
Fri Oct 13, 2017 1:05 am
Have a skill set that's hard to duplicate.
maroon,

It follows that this skill set has limited market space. Only a few employers would need it.

KlangFool
by KlangFool
Fri Oct 13, 2017 8:28 am
Forum: Personal Finance (Not Investing)
Topic: Tax Bracket in Retirement
Replies: 46
Views: 5131

Re: Tax Bracket in Retirement

My question is what are the factors that one can consider he/she'll be in a higher or lower bracket in retirement? One major factor is the time gap (if any) between when you stop working and when you start collecting social security. A tricky issue with social security income is it can be completel...
by KlangFool
Thu Oct 12, 2017 9:57 pm
Forum: Personal Finance (Not Investing)
Topic: Best Career Advice for those over "50"
Replies: 60
Views: 6238

Re: Best Career Advice for those over "50"

I agree with you however in recent years things have changed. In the major metropolitan areas of the West Coast, it is just getting darned expensive to live. Housing is more expensive, even the cheaper options have been bid up. Healthcare premiums have zoomed, and now that I am on my own to buy my ...
by KlangFool
Thu Oct 12, 2017 8:12 pm
Forum: Investing - Help with Personal Investments
Topic: Cyber Security (or lack of) for Mutual Funds
Replies: 20
Views: 1483

Re: Cyber Security (or lack of) for Mutual Funds

I'm not interested in getting in a battle here buddy. That was never my intent. I never claimed to know more than the expert (or anyone else). My point was made in the last two sentences I wrote above. I too have email alerts but any intelligent cyber crook would disable the email alerts before tak...
by KlangFool
Thu Oct 12, 2017 7:44 pm
Forum: Investing - Help with Personal Investments
Topic: Cyber Security (or lack of) for Mutual Funds
Replies: 20
Views: 1483

Re: Cyber Security (or lack of) for Mutual Funds

In the case of the mutual fund, any account changes are alerted to my email account and they would send a letter too. Ditto for any transaction. Money could only go out to a linked bank account. And, it takes several days for a bank account to be linked. I limit the number of mutual funds that have...