Search found 23 matches

by jrinvestor
Sun Apr 03, 2016 5:53 pm
Forum: Investing - Theory, News & General
Topic: Which individual countries hold the most promise for future investment gains?
Replies: 86
Views: 7933

Re: Which individual countries hold the most promise for future investment gains?

If you buy the stock of large cap U.S. firms, there's a good chance that some of their future profit will be based on some of these up and coming countries that show promise for economic growth.
by jrinvestor
Sun Apr 03, 2016 5:47 pm
Forum: Investing - Theory, News & General
Topic: T. Rowe Price Active Management Betters Benchmarks
Replies: 24
Views: 3180

Re: T. Rowe Price Active Management Betters Benchmarks

I recall reading somewhere else in this forum that actively managed funds that perform well in one period tend to underperform for the next period.
by jrinvestor
Sun Apr 03, 2016 5:42 pm
Forum: Investing - Theory, News & General
Topic: Financial burnout
Replies: 65
Views: 11360

Re: Financial burnout

His itemized deductions are largely phased out so minimal tax benefit. Doubtful at a physician income. The phaseout occurs very slowly over a very wide range of income. OP said he has been saving ~$200k a year recently, implying pre-tax income ~$500k. For MFJ the itemized deduction phaseout starts ...
by jrinvestor
Tue Mar 29, 2016 9:56 pm
Forum: Investing - Theory, News & General
Topic: Why do classic portfolios need to be adjusted in 2016?
Replies: 22
Views: 2684

Re: Why do classic portfolios need to be adjusted in 2016?

I think switching bonds for dividend paying stocks defeats the main purpose of having bonds in your portfolio: diversification.
by jrinvestor
Tue Mar 29, 2016 9:51 pm
Forum: Investing - Theory, News & General
Topic: When successful companies don't need to go public
Replies: 21
Views: 3075

Re: When successful companies don't need to go public

I'm not sure if there has been any research done on this, but it seems like many of these large private companies are less capital intensive. For example, it is typically Uber drivers who own their cars, not the company itself. As a result, there may not be a significant need for the company to rais...
by jrinvestor
Tue Mar 29, 2016 4:43 pm
Forum: Investing - Theory, News & General
Topic: Financial burnout
Replies: 65
Views: 11360

Re: Financial burnout

Why fear the mortgage? You are in a very high tax bracket. Mortgage interest is probably one of the largest of your deductions. If you invest money cautiously, rather than paying down the mortgage, you might end up ahead. You may end up collecting long-term capital gains on the investments, at a lo...
by jrinvestor
Tue Mar 29, 2016 4:38 pm
Forum: Investing - Theory, News & General
Topic: Financial burnout
Replies: 65
Views: 11360

Re: Financial burnout

I agree with other posters in the thread - there is no reason to aggressively pay off the mortgage and save if you're going to be miserable doing it. You are earning a good enough income to be able to enjoy your life currently and save significant sums of money for retirement. I would recommend spen...
by jrinvestor
Tue Mar 29, 2016 4:31 pm
Forum: Investing - Theory, News & General
Topic: Anyone else feeling a correction brewing?
Replies: 60
Views: 8344

Re: Anyone else feeling a correction brewing?

I am currently staying course and continuing to invest according to my plans. However, if there is a correction, I am planning on trying to reduce expenses temporarily in order to make good use of the drop to buy stocks at low prices.
by jrinvestor
Tue Mar 29, 2016 4:27 pm
Forum: Investing - Theory, News & General
Topic: Taylor Larimore on Bear Markets
Replies: 31
Views: 4913

Re: Taylor Larimore on Bear Markets

Despite these severe and terrible bear markets which occur, we are all still here. US economy hasn't collapsed completely yet nor has the stock market gone to zero. As long as you are pulling a monthly paycheck it seems that ignoring your account statements for a while is the way to go during these...
by jrinvestor
Tue Mar 29, 2016 1:39 pm
Forum: Investing - Theory, News & General
Topic: It's all about saving, not investing really.
Replies: 84
Views: 9919

Re: It's all about saving, not investing really.

It's hard to say whether saving is more or less important than investing - you could get either answer depending on the scenarios you construct. However, there is no reason why you can't do both. In other words, if you hold factors such as salary, salary growth, inflation, etc. constant, someone who...
by jrinvestor
Tue Mar 29, 2016 1:24 pm
Forum: Investing - Theory, News & General
Topic: Bonds play a valuable role in a diversified portfolio.
Replies: 15
Views: 2456

Re: Bonds play a valuable role in a diversified portfolio.

I think that most people accept that bonds play a valuable role in a portfolio, but the more important question is what is the best allocation (depending on factors such as age and time to retirement). Personally, since I have just started the accumulation stage of my life, I hold about 10% of my po...
by jrinvestor
Sun Mar 27, 2016 3:48 pm
Forum: Investing - Help with Personal Investments
Topic: Opening A Roth For My 5 Year Old?
Replies: 42
Views: 6332

Re: Opening A Roth For My 5 Year Old?

I agree with other posters here that the IRS will find this highly suspicious if you get audited. However, as an alternative, you could think about opening a 529 account for your child, especially if your state gives a state tax deduction. Not only will the gains be tax free, but the advantage is t...
by jrinvestor
Mon Mar 21, 2016 3:18 pm
Forum: Investing - Theory, News & General
Topic: "When an Analyst Has a Stake in the Stock He Picks"
Replies: 4
Views: 845

Re: "When an Analyst Has a Stake in the Stock He Picks"

I always wondered why Analysts who pick stocks don't just invest in those stocks themselves if they legitimately think they can pick the top performing ones. I guess you could think either the analyst has such confidence in the stock he is willing to hold it himself, or that he apparently wants to ...
by jrinvestor
Mon Mar 21, 2016 3:13 pm
Forum: Investing - Help with Personal Investments
Topic: REIT in IRA -> TSM in taxable
Replies: 4
Views: 1161

Re: REIT in IRA -> TSM in taxable

The advantage of holding the REIT in a tax-advantaged account is that, since REITs generally don't pay corporate income taxes, REIT dividends are taxed at ordinary income rates rather than qualified dividend rates. By holding the REIT in an IRA, it is possible to avoid both layers of taxation - at t...
by jrinvestor
Mon Mar 21, 2016 3:08 pm
Forum: Investing - Help with Personal Investments
Topic: Opening A Roth For My 5 Year Old?
Replies: 42
Views: 6332

Re: Opening A Roth For My 5 Year Old?

I agree with other posters here that the IRS will find this highly suspicious if you get audited. However, as an alternative, you could think about opening a 529 account for your child, especially if your state gives a state tax deduction. Not only will the gains be tax free, but the advantage is th...
by jrinvestor
Mon Mar 21, 2016 2:57 pm
Forum: Investing - Help with Personal Investments
Topic: 529 - Maryland or Utah
Replies: 11
Views: 1212

Re: 529 - Maryland or Utah

If they are in the 25% Federal tax bracket, they are probably also in the 4.75% bracket in Maryland. With a state tax deduction, that is essentially like an instant 4.75% guaranteed return, which should easily make up for any higher ERs. However, if they are planning on contributing significantly mo...
by jrinvestor
Mon Mar 21, 2016 2:48 pm
Forum: Investing - Theory, News & General
Topic: How can we see if stock markets are about to crash?
Replies: 52
Views: 6000

Re: How can we see if stock markets are about to crash?

I don't think there is any reliable way to tell if the stock market is about the crash. However, if you're planning on being a net buyer of stocks in the coming future, a drop may not be such a bad thing, as it allows you to enter the market at a lower valuation.
by jrinvestor
Mon Mar 21, 2016 2:38 pm
Forum: Investing - Theory, News & General
Topic: Less is more [Vanguard blog - 2% economic growth prediction]
Replies: 41
Views: 6404

Re: Less is more [Vanguard blog - 2% economic growth prediction]

I know that the US and many other developed countries are going to be going through a period of unfavorable demographics, but overall global demographics and growth prospects are much more favorable. S&P 500 companies generate almost half of their revenue from international sources. Hopefully exposu...
by jrinvestor
Mon Mar 21, 2016 2:17 pm
Forum: Investing - Theory, News & General
Topic: A time to EVALUATE your jitters
Replies: 285
Views: 248407

Re: A time to EVALUATE your jitters

from the Economist's Buttonwood: Elroy Dimson, Paul Marsh and Mike Staunton of the London Business School are the acknowledged experts on global investment returns, having compiled data covering 22 countries over more than a century. As of February 2013, the longest period of negative real returns ...
by jrinvestor
Sat Mar 19, 2016 2:53 pm
Forum: Investing - Theory, News & General
Topic: What is the point of a dividend?
Replies: 92
Views: 8478

Re: What is the point of a dividend?

Dividends are how companies return profits to investors. If a company doesn't have profitable projects to invest in, it will either pay dividends to repurchase stock. While dividends do make you pay taxes today (rather than being able to defer the taxes until you want to sell), this does not matter ...
by jrinvestor
Sat Mar 19, 2016 2:39 pm
Forum: Investing - Theory, News & General
Topic: "When an Analyst Has a Stake in the Stock He Picks"
Replies: 4
Views: 845

Re: "When an Analyst Has a Stake in the Stock He Picks"

I always wondered why Analysts who pick stocks don't just invest in those stocks themselves if they legitimately think they can pick the top performing ones. I guess you could think either the analyst has such confidence in the stock he is willing to hold it himself, or that he apparently wants to i...
by jrinvestor
Sat Mar 19, 2016 2:29 pm
Forum: Investing - Theory, News & General
Topic: How long to plan for sequence of return risk?
Replies: 8
Views: 1211

Re: How long to plan for sequence of return risk?

Another way to reduce sequence of return risk for for retirees is flexibility. For example, if your portfolio drops significantly soon after retirement, maybe you could go back to work part time temporarily. Another options would be to reduce or push back expenses (e.g., travel). This way, you would...
by jrinvestor
Sat Mar 19, 2016 1:45 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 7841
Views: 1609819

Re: U.S. stocks in freefall

I just started investing summer of last year, right before the fall in stock prices. It was really upsetting to be losing money right away, but as of yesterday prices have just about recovered. Good lesson for me about not to panic.