Search found 686 matches

by GAAP
Sat Dec 15, 2018 11:17 am
Forum: Personal Consumer Issues
Topic: How much do you pay for internet only?
Replies: 23
Views: 717

Re: How much do you pay for internet only?

AlohaJoe wrote:
Sat Dec 15, 2018 10:31 am
I pay $17 a month for fiber to the house with no contracts.
One of the advantages to not residing in the USA...

$60/month for 200Mbps cable where I am.
by GAAP
Sat Dec 15, 2018 11:14 am
Forum: Personal Finance (Not Investing)
Topic: Roth IRA for kids
Replies: 100
Views: 10146

Re: Roth IRA for kids

Might want to check out http://irakids.com/ -- seems like a good resource for your situation.
by GAAP
Sat Dec 15, 2018 11:03 am
Forum: Personal Consumer Issues
Topic: smart locks - schlage vs. august vs. something else
Replies: 13
Views: 1022

Re: smart locks - schlage vs. august vs. something else

I wouldn't use anything from kwikset or using kwikset parts. Schlage or Best, yes -- but my experience is with critical infrastructure facilities more than residences. I also wouldn't connect any of my security to the internet -- too many opportunities for problems there, and security software in ge...
by GAAP
Fri Dec 14, 2018 10:44 am
Forum: Investing - Theory, News & General
Topic: Fisher Investments
Replies: 20
Views: 2748

Re: Asking again about Fisher Investments

I have difficulty believing that anyone who advertises as broadly and frequently as that company can provide sufficient value to justify the costs.

Never used them, never even talked to them -- and I have no plans to do so.
by GAAP
Thu Dec 13, 2018 6:50 pm
Forum: Investing - Theory, News & General
Topic: Investing in bonds while you still have a mortgage
Replies: 12
Views: 1130

Re: Investing in bonds while you still have a mortgage

The difference is liquidity. You can pull money from bonds in a pinch, but not your mortgage. In a recession, for example, you can pay the bills with bonds to avoid selling stocks when they are low. If the couple already has significant assets, I would pay off the mortgage. But if they already have...
by GAAP
Thu Dec 13, 2018 4:18 pm
Forum: Investing - Help with Personal Investments
Topic: IRA withdrawal in addition to RMD?
Replies: 5
Views: 255

Re: IRA withdrawal in addition to RMD?

If you don't need the money for spending, then a Roth conversion makes more sense than an additional withdrawal. Both will generate the same amount of taxes, but the conversion continues to grow tax-free. It sounds like you expect to live long enough where the RMDs will eventually kick you into a hi...
by GAAP
Thu Dec 13, 2018 4:11 pm
Forum: Investing - Theory, News & General
Topic: Is there value in these books?
Replies: 22
Views: 1436

Re: Is there value in these books?

If you like two-page sentences and 3-page paragraphs, you'll love Adam Smith...

It's interesting how long he took to write that book, starting with references to the American Colonies and ending up referring to the USA.
by GAAP
Tue Dec 11, 2018 9:55 am
Forum: Investing - Theory, News & General
Topic: You already own international stocks with VTSMX etc [Vanguard Total Stock Market]
Replies: 57
Views: 4688

Re: "How Much International Stocks? A Suggestion."

Taylor Larimore wrote:
Sun Dec 09, 2018 8:09 pm
Bogleheads:

Two years ago I made a post suggesting that U.S. investors allocate 20% of equity in international stocks. This is the link:

How Much International Stocks? A Suggestion

Best wishes.
Taylor
It's also locked because folks couldn't stay civil...
by GAAP
Sat Dec 08, 2018 3:05 pm
Forum: Investing - Theory, News & General
Topic: You already own international stocks with VTSMX etc [Vanguard Total Stock Market]
Replies: 57
Views: 4688

Re: You already own international stocks with VTSMX etc

This comes up frequently, perhaps we need a clear explanation of the difference between international stocks and domestic stocks with foreign operations/investments/holdings -- in a place where people will actually read it. Perhaps having a sticky topic on the subject (probably locked) would prevent...
by GAAP
Fri Dec 07, 2018 1:20 pm
Forum: Investing - Help with Personal Investments
Topic: Retiring in 2 weeks, Traditional 401k
Replies: 99
Views: 6907

Re: Retiring in 2 weeks, Traditional 401k

Next we can transfer to their IRA which again will not have any fees as long as there is a minimum 10k in this account. There is no fee for distributions and also they do not withhold any tax. Of course there's also the option of transferring the 401k into a tIRA at another firm other than T Rowe P...
by GAAP
Fri Dec 07, 2018 1:09 pm
Forum: Investing - Help with Personal Investments
Topic: ETFs vs Mutual Funds in Retirement Accounts
Replies: 19
Views: 1356

Re: ETFs vs Mutual Funds in Retirement Accounts

The one advantage to ETFs for those just starting out is that the minimum investment is less. For example, at the moment, an investor would need to make a minimum $3,000 initial purchase of VTWSX (Vanguard Total World Stock Index Fund Investor Shares), while the ETF equivalent is priced at under $70.
by GAAP
Thu Dec 06, 2018 11:11 am
Forum: Investing - Theory, News & General
Topic: The overwhelming majority lose in a zero-sum trading game.
Replies: 52
Views: 5202

Re: The overwhelming majority lose in a zero-sum trading game.

Time2Quit wrote:
Thu Dec 06, 2018 11:07 am
Let's assume the OP is correct (zero sum game). What happens if everyone or a vast majority becomes and indexer, who are the winners and the losers?
Winners: the indexers.

Losers: the investment bankers -- until they invent some new scam that the general population falls for.
by GAAP
Thu Dec 06, 2018 11:03 am
Forum: Investing - Help with Personal Investments
Topic: 20M Inheritance - What is best option for small/no risk on principal?
Replies: 93
Views: 11808

Re: 20M Inheritance - What is best option for small/no risk on principle?

Looking at CD's which seem like I would have to do a CDARS network. I've seen banks offering 3.4-3.6% on 5 year cd's now which I figured if I'm not paying a 1% management fee is pretty great for no risk on the actual principle. Any other options worth looking into? Keep in mind, inflation is a risk...
by GAAP
Thu Dec 06, 2018 10:51 am
Forum: Personal Finance (Not Investing)
Topic: Housing values may fall as baby boomers die off or sell off, two studies say
Replies: 21
Views: 2409

Re: Housing values may fall as baby boomers die off or sell off, two studies say

I remember an article from the WSJ, probably 15 or more years ago that pointed out the likely results in the housing market from the aging of the boomers. We've been hearing for decades the mantra to "buy a house young, trade up frequently -- when you retire, you can downsize and fund your retiremen...
by GAAP
Tue Dec 04, 2018 11:12 am
Forum: Investing - Help with Personal Investments
Topic: Will we make it saving only in employer plans?
Replies: 58
Views: 4108

Re: Will we make it saving only in employer plans?

Start small. Create Roth IRA accounts for the two of you. Setup automatic monthly transfers to those accounts -- start with $5.00, if necessary. In a few months, you can start buying ETFs in those accounts -- the price per share for anything likely to get suggested on this forum is likely to be unde...
by GAAP
Mon Dec 03, 2018 12:09 pm
Forum: Personal Finance (Not Investing)
Topic: Home Buying - Calculators and Analysis
Replies: 9
Views: 884

Re: Home Buying - Calculators and Analysis

Don't forget transaction costs for both the purchase and sale of the house in your analysis. I generally assume 10% on each to cover all of the misc. stuff that seems to happen. Since you can afford to choose your loan term, you'll have to decide whether you want more cash flow flexibility or less t...
by GAAP
Sun Dec 02, 2018 4:54 pm
Forum: Investing - Help with Personal Investments
Topic: Basic Bucket Theory
Replies: 40
Views: 3801

Re: Basic Bucket Theory

What do buckets have to do with anything? PJW What does the complexity gain you? The point of the complexity was to illustrate the pointless nature of bucket schemes. and their net effect of creating a form of glide-path indirectly, by demonstrating the basic arithmetic argument. It was simplistic ...
by GAAP
Sat Dec 01, 2018 12:02 pm
Forum: Investing - Help with Personal Investments
Topic: Basic Bucket Theory
Replies: 40
Views: 3801

Re: Basic Bucket Theory

Basic bucket theory says it's better to sell risk assets today than a year or two from now. That's all it says. Regardless of procedure one owns the totality of what one owns. To de-risk a portfolio very approximately the major control knob is the split between equities and fixed income. All bucket...
by GAAP
Sat Dec 01, 2018 11:37 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Why “Sell In May”Doesn’t Work
Replies: 6
Views: 854

Re: Larry Swedroe: Why “Sell In May”Doesn’t Work

willthrill81 wrote:
Sat Dec 01, 2018 11:00 am

Thanks! It seemed that it would have worked in the past. But will it work going forward? :?:
For a minor fee, I would be happy to implement this for you -- with your money, of course...
by GAAP
Fri Nov 30, 2018 5:59 pm
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 754
Views: 99021

Re: How much international stock? A suggestion.

I just realized that 2/3 of the posts in this thread have been within the last month. The signal (useful information, interesting insights, effective commentary) to noise (character assaults, invective, snide remarks) ratio is also particularly notable... :annoyed That was excellently observed’, say...
by GAAP
Fri Nov 30, 2018 5:20 pm
Forum: Investing - Help with Personal Investments
Topic: Basic Bucket Theory
Replies: 40
Views: 3801

Re: Basic Bucket Theory

Thanks for your response marcopolo! I am afraid I do not understand your point. Are you saying my approach is flawed. Too many buckets? Unsure.... Ask yourself what your mix should be in 10 years, 15 years, 20 years. The generic bucket description is to pull from the shortest-term assets first, ref...
by GAAP
Thu Nov 29, 2018 3:59 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage/Debt to Income Issues due to Car Loan
Replies: 20
Views: 1099

Re: Mortgage/Debt to Income Issues due to Car Loan

Yup -- and the vehicle would still be perfectly serviceable. Well, I hope you've enjoyed driving that 1988 Dodge Omni or Chevy Cavalier all these years. A "nice" car is a luxury, not a necessity -- that becomes more true the less you drive. Buying a lot of car (and frequently do so) is one reason a...
by GAAP
Thu Nov 29, 2018 12:55 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage/Debt to Income Issues due to Car Loan
Replies: 20
Views: 1099

Re: Mortgage/Debt to Income Issues due to Car Loan

115,000 miles on a modern car is barely started. Our average has been somewhere around 350,000 before we got rid of vehicles. The average person drives ~12,500 miles/year. To put 350K miles on a vehicle would mean driving the same car for nearly 30 years! Yup -- and the vehicle would still be perfe...
by GAAP
Thu Nov 29, 2018 11:29 am
Forum: Investing - Theory, News & General
Topic: How Do You Evaluate A New Potential Portfolio Addition?
Replies: 14
Views: 828

Re: How Do You Evaluate A New Potential Portfolio Addition?

Any more, it's been a question as to whether or not it makes things simpler and easy to understand -- especially for heirs that may not have the same knowledge. That has meant removing slices, dices, and tilts in recent years. Beyond that, does it make sense to me? For example, owning both BND and B...
by GAAP
Thu Nov 29, 2018 11:18 am
Forum: Personal Finance (Not Investing)
Topic: How did YOU choose your career?
Replies: 149
Views: 8715

Re: How did YOU choose your career?

Random stumbling. I entered college thinking Mechanical Engineering, switched to Business, side trip through a 2-year Business Data Processing degree, back to Business with an MIS concentration and Communication Studies and Computer Science minors. Started out in Computer operations, hoping to be a ...
by GAAP
Thu Nov 29, 2018 11:06 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage/Debt to Income Issues due to Car Loan
Replies: 20
Views: 1099

Re: Mortgage/Debt to Income Issues due to Car Loan

115,000 miles on a modern car is barely started. Our average has been somewhere around 350,000 before we got rid of vehicles -- and one of those because it got t-boned. If you need debt to buy a car, you're not ready to buy a house. If you have car debt, you're not ready to buy a house. Pay off any ...
by GAAP
Thu Nov 29, 2018 10:46 am
Forum: Personal Finance (Not Investing)
Topic: The "lure" of working from home vs getting a better job
Replies: 20
Views: 2095

Re: The "lure" of working from home vs getting a better job

20% sounds like a good bump, but... There's a reason the IRS allows $0.545/mile in 2018 -- multiply that by your total commute distance to see what it costs. Also, most bay area commutes of that distance either cross a toll bridge or encourage you to use a toll lane -- add that in also. 45-75 miles ...
by GAAP
Wed Nov 28, 2018 12:00 pm
Forum: Personal Consumer Issues
Topic: Electricity bill should be 7% per month of home sq footage.
Replies: 66
Views: 3905

Re: Electricity bill should be 7% per month of home sq footage.

Scrapr - What can be done to insulate those can lights. Just last week I had to replace a bulb in the can light over the kitchen sink and was amazed how much cold air was there. I was reluctant to do anything at the time and concerned about stuffing anything up in there for fear of fire or somethin...
by GAAP
Wed Nov 28, 2018 11:33 am
Forum: Personal Consumer Issues
Topic: Electricity bill should be 7% per month of home sq footage.
Replies: 66
Views: 3905

Re: Electricity bill should be 7% per month of home sq footage.

Depends a great deal on local utility rates, not just house efficiency...
by GAAP
Wed Nov 28, 2018 10:43 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Are Corp Bonds Worth Risk?
Replies: 59
Views: 4979

Re: Larry Swedroe: Are Corp Bonds Worth Risk?

I don't think I've ever seen an article that directly compares Corporate Bonds to CDs -- interesting.
by GAAP
Tue Nov 27, 2018 10:51 am
Forum: Personal Finance (Not Investing)
Topic: Encouraging a 20-yr old graduate to focus. Help!
Replies: 6
Views: 845

Re: Encouraging a 20-yr old graduate to focus. Help!

She needs hope, not pressure. My daughter's auto-immune disease took 10+ years to diagnose, so there's still a chance for the love of her life. In practical terms, until that sorts out for good or bad, she will likely be unable to focus sufficiently to pursue much of anything... You might want to co...
by GAAP
Tue Nov 27, 2018 10:13 am
Forum: Investing - Theory, News & General
Topic: What is your allocation to U.S. and International?
Replies: 119
Views: 7075

Re: What is your allocation to U.S. and International?

The problem with 50/50 is the same problem as 60/40 and 70/30. They all depend on reversion to some sort of mean. Look at the US proportion from 1900. It was around 15% of the world markets. If you then decided then 15:85 was the "correct" long term ratio and rebalanced it back to that each year, y...
by GAAP
Sun Nov 25, 2018 1:02 pm
Forum: Personal Consumer Issues
Topic: Holiday Gift dilemma
Replies: 9
Views: 587

Re: Holiday Gift dilemma

We just say "Bring good food if you want/need to". It could be a main course, cookies, wine, candy -- doesn't matter. The younger folks really like the reduced budget impact and lowered stress level.
by GAAP
Sun Nov 25, 2018 12:23 pm
Forum: Personal Finance (Not Investing)
Topic: Inheritance questions.
Replies: 17
Views: 2097

Re: Inheritance questions.

Nolo makes a great book on settling a California estate that I used to settle my mother's estate. Even if the state-specific part is not relevant, it does provide a good framework for understanding what you need to do and how to go about doing it. It's available as a PDF download, and cheap. They ma...
by GAAP
Sun Nov 25, 2018 12:07 pm
Forum: Investing - Theory, News & General
Topic: What is your allocation to U.S. and International?
Replies: 119
Views: 7075

Re: What is your allocation to U.S. and International?

The problem with 50/50 is the same problem as 60/40 and 70/30. They all depend on reversion to some sort of mean. Look at the US proportion from 1900. It was around 15% of the world markets. If you then decided then 15:85 was the "correct" long term ratio and rebalanced it back to that each year, y...
by GAAP
Sat Nov 24, 2018 5:48 pm
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 754
Views: 99021

Re: How much international stock? A suggestion.

I don't know about "no brainer", since the results are dependent upon the time period chosen. Changing either endpoint will give a different curve. There's no way to know whether or not the illustrated curve will look a lot or little like the curve for the next few decades until they've passed. Cer...
by GAAP
Sat Nov 24, 2018 5:38 pm
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 754
Views: 99021

Re: How much international stock? A suggestion.

I don't know about "no brainer", since the results are dependent upon the time period chosen. Changing either endpoint will give a different curve. There's no way to know whether or not the illustrated curve will look a lot or little like the curve for the next few decades until they've passed. Cer...
by GAAP
Sat Nov 24, 2018 5:22 pm
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 754
Views: 99021

Re: How much international stock? A suggestion.

Sure. Using monthly returns from MSCI World ex. USA and MSCI USA indexes as far back as they go (12/31/1969) I computed the three portfolios in Portfolio Visualizer. Because I imported the returns manually, the link isn't shareable but here's an illustration of the efficient frontier. https://i.img...
by GAAP
Sat Nov 24, 2018 5:15 pm
Forum: Investing - Theory, News & General
Topic: What is your allocation to U.S. and International?
Replies: 119
Views: 7075

Re: What is your allocation to U.S. and International?

Approximately 50/50 per asset class, given that I use VT (total world ETF) for equity, and a 50/50 mix of BND/BNDX for bonds. If I were starting today, I would use BNDW (total world bond) instead. My Equity to Fixed Income ratio is 70/30. With the interconnected financial world that we have today, I...
by GAAP
Sat Nov 24, 2018 5:06 pm
Forum: Personal Finance (Not Investing)
Topic: Should I sell my house?
Replies: 59
Views: 4780

Re: Should I sell my house?

I moved and rented out a prior house for a few years. The damage done to the house by the renters canceled out any overall real estate gains. I found it to be a royal pain, and I was only 35 miles away, not 3000.
by GAAP
Sat Nov 24, 2018 5:03 pm
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 754
Views: 99021

Re: How much international stock? A suggestion.

So, maximum diversification pretty much seems to match the overall relative sizes of US and International during that period? Yes, but it's more of a coincidence (or, depending on your point of view, an artifact of the calculation) than a result you should inherently expect in a maximum diversifica...
by GAAP
Sat Nov 24, 2018 2:40 pm
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 754
Views: 99021

Re: How much international stock? A suggestion.

That said, looking just at the data from MSCI World (the oldest global index series publicly available, with data back to 1970) we can observe that MAXIMUM diversification came from holding roughly 53% US stocks and 47% world ex. US stocks. The highest risk-adjusted return came from holding 24% wor...
by GAAP
Fri Nov 23, 2018 1:10 pm
Forum: Investing - Theory, News & General
Topic: How to Withdraw Money in Retirement, Following a Down Year
Replies: 58
Views: 5433

Re: How to Withdraw Money in Retirement, Following a Down Year

Perhaps I overstated. Though, I'm reaching a bit to come up with good examples where one would pull from stocks in/after a down year. You're 50-50, market dropped 20%. You'd pull from stocks the next year for expenses? In that case, the portfolio would drop to 45/55. I wouldn't be pulling from stoc...
by GAAP
Fri Nov 23, 2018 12:04 pm
Forum: Investing - Theory, News & General
Topic: How to Withdraw Money in Retirement, Following a Down Year
Replies: 58
Views: 5433

Re: How to Withdraw Money in Retirement, Following a Down Year

Perhaps I overstated. Though, I'm reaching a bit to come up with good examples where one would pull from stocks in/after a down year. You're 50-50, market dropped 20%. You'd pull from stocks the next year for expenses? In that case, the portfolio would drop to 45/55. I wouldn't be pulling from stoc...
by GAAP
Thu Nov 22, 2018 11:18 am
Forum: Personal Finance (Not Investing)
Topic: Electrical Engineering move to consultant?
Replies: 16
Views: 2094

Re: Electrical Engineering move to consultant?

At a minimum, he needs that PE -- nobody will hire without it.

He needs to put together a CV of all of his experience so that he can respond with targeted specifics to potential client RFPs.

There are some good general books on consulting -- he should probably read them before taking the plunge.
by GAAP
Thu Nov 22, 2018 11:13 am
Forum: Investing - Theory, News & General
Topic: How to Withdraw Money in Retirement, Following a Down Year
Replies: 58
Views: 5433

Re: How to Withdraw Money in Retirement, Following a Down Year

My point is that most of the BHs that weigh in on topics like this are in agreement that in down years, you pull from bonds (or cash). Great. I think the more interesting question is, what next? What's the multi-year strategy? (Note: those withdrawing 2% of your portfolio, I don't care what your an...
by GAAP
Thu Nov 22, 2018 11:04 am
Forum: Investing - Theory, News & General
Topic: How to Withdraw Money in Retirement, Following a Down Year
Replies: 58
Views: 5433

Re: How to Withdraw Money in Retirement, Following a Down Year

The flaw (not really the right word, it has a connotation of error where there is none) with VPW is that you need to choose your end date (meaning, when you will die). Only God knows this. The other thing I noticed with VPW is that roughly 20% of withdrawals come in the last 5 years of life. Not su...
by GAAP
Wed Nov 21, 2018 1:38 pm
Forum: Investing - Theory, News & General
Topic: How to Withdraw Money in Retirement, Following a Down Year
Replies: 58
Views: 5433

Re: How to Withdraw Money in Retirement, Following a Down Year

The flaw (not really the right word, it has a connotation of error where there is none) with VPW is that you need to choose your end date (meaning, when you will die). Only God knows this. The other thing I noticed with VPW is that roughly 20% of withdrawals come in the last 5 years of life. Not su...
by GAAP
Wed Nov 21, 2018 11:40 am
Forum: Personal Consumer Issues
Topic: Anyone own a Roth oil tank?
Replies: 14
Views: 984

Re: Anyone own a Roth oil tank?

Don't have oil furnaces here -- but I'm frankly shocked that a single wall tank would even be allowed anymore. We've been using double-wall concrete vaults for generators for decades in the telecom industry -- and putting containment around them in some cases. My vote would obviously be for a doubl...
by GAAP
Wed Nov 21, 2018 11:12 am
Forum: Personal Consumer Issues
Topic: Anyone own a Roth oil tank?
Replies: 14
Views: 984

Re: Anyone own a Roth oil tank?

Don't have oil furnaces here -- but I'm frankly shocked that a single wall tank would even be allowed anymore. We've been using double-wall concrete vaults for generators for decades in the telecom industry -- and putting containment around them in some cases. My vote would obviously be for a double...