Search found 278 matches

by Independent George
Wed Sep 12, 2018 12:39 pm
Forum: Investing - Theory, News & General
Topic: Why Bull Markets Are Dangerous
Replies: 152
Views: 16542

Re: Why Bull Markets Are Dangerous

Nor for me. I recommended an "age-appropriate" Target Date fund for a friend in 2004, and it performed terribly in 2008, just as he was about to retire. We are no longer friends. I still feel terrible about it. Never again.... But just about all funds would have performed terribly in 2008 - and an ...
by Independent George
Tue Sep 04, 2018 8:43 pm
Forum: Personal Consumer Issues
Topic: How to "waste" money on groceries?
Replies: 109
Views: 9442

Re: How to "waste" money on groceries?

How about both? I save money by baking my own baguettes every morning. However, I then splurge by exclusively buying King Arthur flour (both bread flour and AP flour), which carries a significant price premium for the higher and more consistent glutent content. Then, I save a little by buying it fro...
by Independent George
Tue Sep 04, 2018 1:29 pm
Forum: Personal Finance (Not Investing)
Topic: Talk me out of buying a house
Replies: 28
Views: 2403

Re: Talk me out of buying a house

You are also unmarried and only 31 years old. If/when you get a spouse, where you want to live should be a decision you make together.
by Independent George
Tue Sep 04, 2018 9:31 am
Forum: Investing - Theory, News & General
Topic: Does it make sense to invest in individual stocks (like Kanye West) if you stick to what you know?
Replies: 110
Views: 5543

Re: Does it make sense to invest in individual stocks (like Kanye West) if you stick to what you know?

I would also make the point that if you are an expert within a sector, it probably means you are working in that sector. Over-weighting your portfolio there is likely to increase your risk by even more than what shows up on your statements, as your income is already going to be tied to the performan...
by Independent George
Mon Aug 27, 2018 5:39 pm
Forum: Personal Finance (Not Investing)
Topic: 28/F - First time home buyer needs advice on saving more
Replies: 39
Views: 3817

Re: 28/F - First time home buyer needs advice on saving more

Not married nor kids but someday. I want to purchase a home sooner than later because the market had been so hot for so long. I am afraid of being priced out or having to work through retirement to pay rent. As someone who bought his condo in July 2007 for those exact same reasons, I urge you to re...
by Independent George
Mon Aug 27, 2018 3:55 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 6845
Views: 1495728

Re: U.S. stocks in freefall

Sooner or later, US stocks will go into freefall, exactly as they have done on multiple occasions in my lifetime.

I think it's important to remember that the point of this thread is not to deride the notion of freefall itself, but the notion that we can predict when it will happen.
by Independent George
Mon Aug 27, 2018 12:10 pm
Forum: Personal Consumer Issues
Topic: Best ultra thin pocket knife?
Replies: 54
Views: 3452

Re: Best ultra thin pocket knife?

I carry a Spyderco Dragonfly - it's just big enough to be useful, just small enough (with a great pocket clip) to remain discreet, and is way sturdier than the cheap knives you find on Amazon. I use it primarily for opening those stupid plastic anti-theft clamshells that everything is packed in thes...
by Independent George
Mon Aug 27, 2018 10:39 am
Forum: Investing - Theory, News & General
Topic: Individual Stocks That Went Bust
Replies: 110
Views: 9264

Re: Individual Stocks That Went Bust

What are the odds of GE joining this list in the next few years?
by Independent George
Sun Aug 26, 2018 10:21 pm
Forum: Personal Finance (Not Investing)
Topic: Can't handle being in debt (mentally)
Replies: 34
Views: 3576

Re: Can't handle being in debt (mentally)

How deep in debt is he, and how long will it take to pay it off? Depending on the numbers, he might actually be right about withdrawing up to his Roth contributions to pay it down. At 24%, he is almost certainly better paying off the debt than he is $11k in a Roth. If his credit is good, and he can ...
by Independent George
Fri Aug 24, 2018 9:47 pm
Forum: Investing - Theory, News & General
Topic: The first million is the hardest?
Replies: 46
Views: 9024

Re: The first million is the hardest?

I reached $100k around 2007, so for me, it was the second time I hit $100k that felt the hardest. In hindsight, it really didn't take long, but nevertheless it was a rough time all around.
by Independent George
Thu Aug 23, 2018 1:44 pm
Forum: Personal Consumer Issues
Topic: Test your cognitive biases
Replies: 89
Views: 5292

Re: Test your cognitive biases

I guess I scored a zero because the quiz won't load on my browser.
by Independent George
Mon Aug 20, 2018 10:20 pm
Forum: Personal Finance (Not Investing)
Topic: Looking for a pep talk
Replies: 39
Views: 4985

Re: Looking for a pep talk

Based on the above, the reason your net worth remained flat is because you counted that $102k in unvested 403b match as an asset in the prior year, and then lost that asset. Based on those numbers, you have: $85k (debt payoff) + $12k (net on sale of house) - $102k = -$5k. Your net worth remained fla...
by Independent George
Tue Aug 07, 2018 7:57 pm
Forum: Personal Finance (Not Investing)
Topic: Comfort level with Credit Card Balance
Replies: 86
Views: 5732

Re: Comfort level with Credit Card Balance

I hate the float, so I pay the statement balance the day after the statement closes. I actually disabled autopay because it would transfer on the card's due date instead of the statement close date, and I hate seeing that balance on my account. It's probably irrational, but it's not like my checking...
by Independent George
Tue Jul 31, 2018 7:46 pm
Forum: Personal Finance (Not Investing)
Topic: Are Credit Cards Actually Convenient?
Replies: 91
Views: 7144

Re: Are Credit Cards Actually Convenient?

When you log into your card account online, there should be a section where you can inform them of any forthcoming trips. On my Chase accounts, it's under 'Settings==>More Settings==>Travel'. I've always inform them as soon as I book a trip now.
by Independent George
Tue Jul 31, 2018 10:40 am
Forum: Investing - Help with Personal Investments
Topic: 401k matching
Replies: 33
Views: 2352

Re: 401k matching

Based on some recent lawsuits , it is entirely possible that the Professor's 401k plan was just as terrible as advertised. The problem comes with generalizing based on that one personal experience. As detailed in numerous threads here, a lot of private sector plans are genuinely awful, managed by HR...
by Independent George
Sun Jul 29, 2018 8:33 am
Forum: Investing - Theory, News & General
Topic: Is Jim Cramer a Closet Boglehead?
Replies: 22
Views: 2361

Re: Is Jim Cramer a Closet Boglehead?

There's nothing closet about it; he's been explicitly in favor of indexing it for years. "Mad Money" is what you have after you've funded your retirement accounts with low-cost index funds. He's said as much numerous times. I have a modest income and don't have any Mad Money, but a lot of Bogleheads...
by Independent George
Sat Jul 28, 2018 12:36 pm
Forum: Investing - Help with Personal Investments
Topic: vanguard rate of return
Replies: 16
Views: 1748

Re: vanguard rate of return

thanks for answering honestly. That explains it. I was wondering if you were misremembering 2000-2002 and were invested in the QQQs which dropped 70% during that time. But even then I thought, in order to have lost that much you'd have to have invested 100% in the QQQs at that time. Looking at the ...
by Independent George
Fri Jul 27, 2018 9:47 pm
Forum: Investing - Help with Personal Investments
Topic: vanguard rate of return
Replies: 16
Views: 1748

Re: vanguard rate of return

can I ask what you were invested in during that period? The reason I'm asking is because the "whole market" you mention did not drop 70%. Between 10/12/07-3/6/09 the total U.S. stock market went down 55% (blue line below). The total international stock market index went down 60% during the same tim...
by Independent George
Thu Jul 26, 2018 5:29 pm
Forum: Investing - Help with Personal Investments
Topic: vanguard rate of return
Replies: 16
Views: 1748

Re: vanguard rate of return

It's July 26, so a YTD return would cover just under 7 months. 7 months is not a very long period of time. If your portfolio is sufficiently diversified, and you are satisfied with your asset allocation, you should not worried about any 7 month period. Or even a 7 year period. Investing is about lon...
by Independent George
Thu Jul 26, 2018 2:26 pm
Forum: Investing - Help with Personal Investments
Topic: Widow needs help with asset allocation
Replies: 14
Views: 1728

Re: Widow needs help with asset allocation

As a Flagship client would they offer advice on my Fidelity holding or only on the IRA at Vanguard? They will offer advice on your entire portfolio, including your Fidelity holding. I have no personal experience with them (as I'm nowhere near Flagship status), but they are obligated to act as your ...
by Independent George
Tue Jul 24, 2018 4:24 pm
Forum: Investing - Help with Personal Investments
Topic: How do you deal with a bear market?
Replies: 35
Views: 2438

Re: How do you deal with a bear market?

mxzeroo wrote: ↑
Tue Jul 24, 2018 3:34 pm
Thank you, everyone, for the answer. I do believe that the hardest challenge will be to stick in times where everyone will be saying to sell. This topic will certainly be my reference.
Stick around. What everybody here will be saying is, "Stick to the plan and rebalance.".
by Independent George
Tue Jul 24, 2018 4:19 pm
Forum: Personal Finance (Not Investing)
Topic: Pay off highest APR or highest balance?
Replies: 20
Views: 1158

Re: Pay off highest APR or highest balance?

Mathematically, it is always best to pay off the account with the highest interest rate. There are good psychological reasons to pay off the lowest balance instead of the highest rate; there is no good reason to pay off the highest balance first. Your lowest balance also has the highest rate, so pay...
by Independent George
Tue Jul 24, 2018 3:37 pm
Forum: Investing - Help with Personal Investments
Topic: How do you deal with a bear market?
Replies: 35
Views: 2438

Re: How do you deal with a bear market?

I recently started investing and I like the idea of solid investments that I believe in. Hence I will buy and hold, even in recessions. My portfolio is like 60/40 stocks (etf)/bonds. But a lot of people around me tell me that you should sell your equity investments for bonds or things like gold whe...
by Independent George
Tue Jul 24, 2018 11:36 am
Forum: Investing - Help with Personal Investments
Topic: Widow needs help with asset allocation
Replies: 14
Views: 1728

Re: Widow needs help with asset allocation

You have my condolences on your loss. With over $2M in assets, a nearly paid-off mortgage, and your youngest child's college expenses more or less already taken care of, you could probably leave everything exactly where it is and still be fine. There are a few things you could change, but the import...
by Independent George
Thu Jul 19, 2018 9:08 am
Forum: Investing - Theory, News & General
Topic: I may have understood why it's so hard to save and invest
Replies: 75
Views: 11262

Re: I may have understood why it's so hard to save and invest

Most say once you hit the 500k threshold, compounding starts to exceed your deposits. For example a 1% move in the market on any one given day is $5,000. Yearly market returns start to exceed your yearly deposits. You'll see this and start to be amazed. This - a thousand times this. It's taken me 2...
by Independent George
Thu Jul 19, 2018 8:34 am
Forum: Investing - Help with Personal Investments
Topic: How do you handle the urge to DO something?
Replies: 102
Views: 7564

Re: How do you handle the urge to DO something?

It's quite simple - I just remember all the years I spent in my 20s doing a lot of 'something' with my investments.
by Independent George
Tue Jul 17, 2018 12:02 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for young colleague please
Replies: 28
Views: 2503

Re: Advice for young colleague please

I notice the interest rates on the card have been posted - yeah, those are crazy high. Tackling that high-interest unsecured debt has to be her #1 priority. If her credit is good enough, should consider consolidating her credit card debts on a 0% interest credit card. There are several cards offerin...
by Independent George
Mon Jul 16, 2018 4:24 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for young colleague please
Replies: 28
Views: 2503

Re: Advice for young colleague please

It might be worth it to find a card with an introductory 0% rate and consolidate there. Even she can't find one without a transfer fee, it would probably be better than paying interest on current balances. The key is spending discipline, though, and making sure you pay the balance down before the in...
by Independent George
Fri Jul 13, 2018 5:12 pm
Forum: Investing - Help with Personal Investments
Topic: New 18 year old need advice
Replies: 15
Views: 928

Re: New 18 year old need advice

Since you have a good idea of how long you will be holding the money, another good option is to buy Treasury Bills (which can also be purchased through a Vanguard brokerage account). The yields are slightly higher than most bank CD yields, but they are not as to redeem if you need cash before maturi...
by Independent George
Fri Jul 13, 2018 2:35 pm
Forum: Investing - Help with Personal Investments
Topic: Self Employed 48years old and nothing saved for retirement
Replies: 41
Views: 5463

Re: Self Employed 48years old and nothing saved for retirement

Buy the house. Mortgage payments build up your equity in the house. Monthly rent is money thrown away. Work on paying off other debt, especially high interest credit cards. Enjoy life, while you're still young. Retiring with lots of money is over rated. Money can't buy enjoyment when one is too old...
by Independent George
Thu Jul 12, 2018 9:49 am
Forum: Investing - Help with Personal Investments
Topic: Eesh! 100% Company Stock - Help me with my 401k!
Replies: 20
Views: 1532

Re: Eesh! 100% Company Stock - Help me with my 401k!

I should probably clarify the income. My Salary: $100k. Wife's Salary: $70k. Two kids. My wife and I have some mega student loans & debts ($350k+, excluding house), so we're essentially using her salary to throw at all the debt. Her current employer does not offer a 401k plan. At this point in life...
by Independent George
Tue Jul 10, 2018 8:51 am
Forum: Investing - Help with Personal Investments
Topic: Any Dry Powder Strategies?
Replies: 103
Views: 6234

Re: Any Dry Powder Strategies?

This seems backwards to me - if you're entering retirement, shouldn't you be shifting your AA from the riskier 60% to the safer 40% instead of the other way around? Leaving aside the market timing question - you're waiting for a downturn in your retirement in hopes of buying assets cheap, so that it...
by Independent George
Mon Jun 18, 2018 3:08 pm
Forum: Investing - Theory, News & General
Topic: Vanguard email about transition fund accounts to new brokerage platform
Replies: 37
Views: 2737

Re: Vanguard Brokerage Acct. WHY ?

There are two main benefits I can see to the brokerage account: 1. It lets you buy Treasury Notes directly (instead of being limited to the treasury mutual funds). 2. If you have a low balance/low income, you can buy ETFs without having to clear the $3k investment threshold for the major Vanguard in...
by Independent George
Mon Jun 11, 2018 9:11 pm
Forum: Investing - Help with Personal Investments
Topic: Who uses the 3 fund portfolio ?
Replies: 112
Views: 18422

Re: Who uses the 3 fund portfolio ?

I'm on the 4-fund portfolio in my IRA, because I bought into the REIT index fund a long time ago, when they were the hot investment, and prefer to ride it out instead of selling. I don't plan on buying any more of it, so it should become more and more like a 3-fund portfolio as time goes on. I suppo...
by Independent George
Mon Jun 11, 2018 8:27 am
Forum: Personal Finance (Not Investing)
Topic: What does "tap into" the Social Security trust fund mean?
Replies: 29
Views: 2493

Re: What does "tap into" the Social Security trust fund mean?

What it means is the money has to come from either (1) general revenues, or (2) borrowing from outside the US. #1 means Social Security spending crowding out current expenses on the budget, like the military, infrastructure, etc. #2 means punting the fiscal reckoning down the road a few more years b...
by Independent George
Mon Jun 11, 2018 8:16 am
Forum: Investing - Help with Personal Investments
Topic: 35 and Need Help With Building Wealth
Replies: 55
Views: 7056

Re: 35 and Need Help With Building Wealth

this is more of a humble brag than generally applicable advice. hate to break it to you. congrats on the FI at 32 (which is awesome, im jelly), but the fact that it is such an exceptional thing to say in itself destroys the general applicability of your point of view. it kind of pains me here to be...
by Independent George
Sun Jun 10, 2018 10:35 pm
Forum: Investing - Help with Personal Investments
Topic: 35 and Need Help With Building Wealth
Replies: 55
Views: 7056

Re: 35 and Need Help With Building Wealth

1. Very few people here (if any) are going to recommending picking individual stocks. You can do very well investing in individual stocks... or you can get crushed. The 'safest' thing you can do is invest in a broad, diverse index fund to capture the growth of the entire economy. 2. You definitely n...
by Independent George
Sat Jun 09, 2018 4:24 pm
Forum: Investing - Help with Personal Investments
Topic: Investing some of mom's money,
Replies: 31
Views: 2175

Re: Investing some of mom's money,

Honestly, at 88 years and having a $2M balance, being 100% cash in FDIC-insured accounts seems like a perfectly reasonable investment plan.
by Independent George
Sat Jun 09, 2018 4:15 pm
Forum: Investing - Help with Personal Investments
Topic: High expense ratios in Vanguard 401k
Replies: 16
Views: 1560

Re: High expense ratios in Vanguard 401k

This sounds like something to take to HR. It seems more likely to me that your HR department selected the funds for the plan than this being a standard offering from Vanguard.
by Independent George
Thu Jun 07, 2018 10:02 pm
Forum: Investing - Theory, News & General
Topic: The Psychology of Money - A Blog Post
Replies: 67
Views: 10339

Re: The Psychology of Money - A Blog Post

I think the pyramid matches the Boglehead philosophy pretty well. Reading these forums, we discuss security selection all the time: S&P500 vs Total Market Index? Treasuries or CDs? How much international? How much to tilt in factors? The consensus answer in all of these same threads: It really doesn...
by Independent George
Tue Jun 05, 2018 3:35 pm
Forum: Investing - Theory, News & General
Topic: Best case to convert a Bogle skeptic?
Replies: 56
Views: 5210

Re: Best case to convert a Bogle skeptic?

Hypothetical question: thirty years from now, will our grandkids be equally frustrated with us for sticking with index funds when investment strategy X proves to be a feasible way for a financially literate investor to beat the 70% of the market invested in index funds in exchange?
by Independent George
Sun May 27, 2018 11:06 pm
Forum: Investing - Theory, News & General
Topic: New Trend: Bonds in Roth IRA
Replies: 16
Views: 2745

Re: New Trend: Bonds in Roth IRA

I always thought the main reason to keep bonds in your IRA was to avoid paying taxes on the interest during your accumulation phase, since your capital gains rates will presumably be lower than your normal income tax rate, and will only be taxed on the sale.
by Independent George
Fri May 18, 2018 9:33 am
Forum: Investing - Theory, News & General
Topic: Rob Arnott:index Investors Buy High, Sell Low
Replies: 51
Views: 5582

Re: Rob Arnott:index Investors Buy High, Sell Low

That's was a good read, and his ideas seem sound to me. I don't think that really impacts retail investors like the most of us, though, because those minor gains from index arbitrage are comparatively tiny. He's talking about exploiting index tracking to gain roughly 0.5% - which is great if you're ...
by Independent George
Fri May 18, 2018 7:36 am
Forum: Investing - Theory, News & General
Topic: Is Vanguard anti-competitive?
Replies: 29
Views: 3306

Re: Is Vanguard anti-competitive?

New investor here. When you say that Vanguard is returning returns to the shareholders (i.e. its funds i.e. its fund holders) in the form of lower costs, does it not mean that it is avoiding paying corporate taxes on what would otherwise be treated as earnings? Is that not anti-competitive? I am no...
by Independent George
Wed May 16, 2018 9:11 pm
Forum: Investing - Theory, News & General
Topic: How do companies that offer 401k profit?
Replies: 9
Views: 1547

Re: How do companies that offer 401k profit?

Vanguard specifically makes no profit. https://www.washingtonpost.com/business/economy/how-vanguards-decision-to-forgo-profit-has-paid-off-for-investors/2016/09/15/87eb7940-7b65-11e6-ac8e-cf8e0dd91dc7_story.html?noredirect=on&utm_term=.a0ae3611de60 That's a bit of a misnomer; I love Vanguard, but c...
by Independent George
Wed May 16, 2018 12:01 am
Forum: Investing - Theory, News & General
Topic: NRIA.NET - Real Estate Private Placement - 16% return
Replies: 21
Views: 2124

Re: NRIA.NET - Real Estate Private Placement - 16% return

So, if I'm reading this right... 1. Investor gives them a minimum of $50k in cash. 2. They use cash from investors to build/flip/rent real estate in expensive areas of the east coast. 3. They return an increasing % back to you based on how much money you sink in. Seems like a scam to me - how exactl...
by Independent George
Tue May 15, 2018 10:58 pm
Forum: Investing - Theory, News & General
Topic: How much should I save before I start investing? and more
Replies: 13
Views: 2136

Re: How much should I save before I start investing? and more

Hi guys! First of all, I want to clear out that I am still at university- studying and working at the same time. I have been financially independent for some time now. As my graduation approaches, I started thinking about ways I can be smart with my finances. I am new to the forum and the investmen...
by Independent George
Tue May 15, 2018 3:38 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 6845
Views: 1495728

Re: U.S. stocks in freefall

During the great crash of '08-'09, my primary worry wasn't my portfolio, but my income. The same is true today - I don't much care about the paper value of my assets (including my condo), but I would be lying if I said I'm not tempted to put more into cash and less into my 401(k) because of worries ...
by Independent George
Mon Apr 30, 2018 4:01 pm
Forum: Personal Finance (Not Investing)
Topic: Favors for Family/Friends and Getting Compensated or Not?
Replies: 39
Views: 3604

Re: Favors for Family/Friends and Getting Compensated or Not?

How does someone even ask for these kinds of things? "Hey, Come on over and paint my home this weekend. Bring some drop clothes and a couple brushes. I will provide the paint." I've helped plenty of people out with house painting or minor home repairs. It seems normal to me - the caveat being that ...
by Independent George
Mon Apr 30, 2018 9:17 am
Forum: Personal Finance (Not Investing)
Topic: Favors for Family/Friends and Getting Compensated or Not?
Replies: 39
Views: 3604

Re: Favors for Family/Friends and Getting Compensated or Not?

Everything is a matter of context, and the difficulty of 'favors' is that it really depends on at least the appearance of equivalent exchange. Perceptions often differ greatly, though, and it's not common for one party or another to remember only one side of the exchange. It's not malicious - it's j...